Venezuela Seen Getting Off 'Lightly' In $908 Million Exxon Payment

Author: Vyas, Kejal; Gonzalez, Angel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Jan 2012: n/a.

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The verdict comes four years after Exxon, the world's largest publicly traded oil company, left Venezuela in a spat with the country's government, which decreed that the state oil monopoly would have the majority stake in joint ventures with foreign partners.

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CARACAS -- An international arbitration panel awarded U.S. oil major Exxon Mobil Corp. about $908 million in a verdict over oil assets nationalized by Venezuelan President Hugo Chavez in 2007, the company said late Saturday.

The payout is substantially lower than the $7 billion that Exxon was seeking in restitution and is likely to be a boon for Venezuela's defiant leftist government, which in recent years has embarked on a widespread nationalization campaign to centralize control over key economic sectors.

"It's a nice Christmas present for Chavez and Venezuela," said Russ Dallen, an analyst and bond trader at local investment bank Caracas Capital Markets. "The verdict is a lot less than people were probably thinking. It certainly means that [state oil company Petroleos de Venezuela SA or PdVSA] got off lightly," Dallen added.

Exxon spokesman Patrick McGinn said the decision by an arbitration court at the International Chamber of Commerce, "confirms that PdVSA does have a contractual liability to Exxon Mobil."

A PdVSA spokesman declined comment when reached by telephone on Sunday.

Both parties are still awaiting a decision on the suit filed by Exxon's local subsidiary, Mobil Cerro Negro Ltd., against Venezuela in front of the World Bank's International Centre for Settlement of Investment Disputes, or ICSID, where the Chavez administration is facing around 20 pending cases. With billions in potential payouts looming, the number of cases has been the source of constant concern for holders of Venezuelan sovereign bonds.

The verdict comes four years after Exxon, the world's largest publicly traded oil company, left Venezuela in a spat with the country's government, which decreed that the state oil monopoly would have the majority stake in joint ventures with foreign partners. By law, PdVSA now holds at least 60% of all oil projects.

Exxon has said that it invested around $750 million into the Cerro Negro facility. The company reduced its claim to $7 billion from an initial claim of $12 billion.

Despite the smaller-than-expected compensation for Exxon, the money is still a substantial chunk of change for PdVSA, which posted a net profit of $4 billion during the first six months of 2011. The Venezuelan oil monopoly has faced declining oil production and cash flow problems in recent years as Chavez diverts large portions of revenue toward social projects, which critics say has resulted in insufficient investments into maintenance.

Earlier this year, Venezuelan Oil Minister Rafael Ramirez said his government planned to pay no more than a total of $2.5 billion between its arbitration cases with Exxon and ConocoPhillips. Fellow oil major Chevron Corp., the second-largest U.S. oil company, decided to accept PdVSA's majority stake and remained in Venezuela.

In September, Mr. Ramirez also threw out the possibility of settling with Exxon outside of courts, shortly after the country's prosecutor general told reporters that the $6 billion settlement was being negotiated.

The Cerro Negro project had an estimated value of around $2 billion and is located in Venezuela's massive and still mostly untapped Orinoco heavy oil belt. It is a legacy of Venezuela's temporary bid to open up its oil industry to foreign players in the 1990's, at a time when oil was cheap and large investments were needed for the first wave of heavy oil projects. The facility has since had its name changed to Petromonagas and currently processes some 120,000 barrels of heavy crude oil a day. PdVSA is the majority owner, while Anglo-Russian oil joint venture TNK-BP holds a 16.7% stake and has said that it is interested in purchasing Exxon's former share from PdVSA.

Credit: By Kejal Vyas And Angel Gonzalez

Subject: Petroleum industry; Petroleum production; Nationalization; Equity stake

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Jan 1, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 913195903

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/913195903?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The W all Street Journal

Venezuela Seen Getting Off 'Lightly' In $908 Million Exxon Payment

Author: Vyas, Kejal; Gonzalez, Angel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Jan 2012: n/a.

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Abstract:

CARACAS, Venezuela--An international arbitration panel awarded Exxon Mobil Corp. about $908 million in a verdict over oil assets nationalized by Venezuelan President Hugo Chavez in 2007, the company said late Saturday.

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CARACAS, Venezuela--An international arbitration panel awarded Exxon Mobil Corp. about $908 million in a verdict over oil assets nationalized by Venezuelan President Hugo Chavez in 2007, the company said late Saturday.

The payout was substantially lower than the $7 billion that Exxon was seeking in restitution and is likely to be a boon for Venezuela's defiant leftist government, which in recent years has embarked on a widespread nationalization campaign to centralize control over key economic sectors.

State oil company Petroleos de Venezuela SA "got off lightly," said Russ Dallen, an analyst and bond trader at Caracas Capital Markets.

An Exxon spokesman said the decision, by an arbitration court at the International Chamber of Commerce, "confirms that PdVSA does have a contractual liability to Exxon Mobil."

A PdVSA spokesman declined to comment.

Both parties are awaiting a decision on the suit filed by Exxon's local subsidiary, Mobil Cerro Negro Ltd., against Venezuela in front of the World Bank's International Centre for Settlement of Investment Disputes, where the Chavez administration is facing around 20 cases. With billions of dollars in potential payouts looming, the number of cases has been a source of concern for holders of Venezuelan sovereign bonds.

Four years ago, Exxon, the world's largest publicly traded oil company, left Venezuela in a spat with the government, which decreed that the state oil monopoly would have the majority stake in joint ventures with foreign partners. PdVSA now holds at least 60% of all oil projects.

Exxon has said it invested around $750 million into the Cerro Negro facility. The company reduced its claim to $7 billion from an initial claim of $12 billion.

Despite the smaller-than-expected compensation for Exxon, the money is still a substantial chunk of change for PdVSA, which posted a net profit of $4 billion during the first half of last year. The monopoly has faced declining oil production and cash-flow problems in recent years as Mr. Chavez has diverted large portions of revenue toward social projects. Critics have said that caused insufficient investment in maintenance.

Venezuelan Oil Minister Rafael Ramirez has said the government planned to pay no more than a total of $2.5 billion between its arbitration cases with Exxon and ConocoPhillips. Chevron Corp., the second-largest U.S. oil company, decided to accept PdVSA's majority stake and remained in Venezuela.

Mr. Ramirez in September threw out the possibility of settling with Exxon out of court, shortly after the country's prosecutor general told reporters that the $6 billion settlement was being negotiated.

Credit: By Kejal Vyas And Angel Gonzalez

Subject: Petroleum industry; Arbitration

Location: United States--US

People: Chavez, Hugo

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Jan 2, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 913266661

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/913266661?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Panel Deals a Setback to Exxon in Venezuela

Author: Vyas, Kejal; Gonzalez, Angel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Jan 2012: n/a.

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Abstract:

CARACAS, Venezuela--An international arbitration panel awarded Exxon Mobil Corp. about $908 million in a verdict over oil assets nationalized by Venezuelan President Hugo Chavez in 2007, the company said late Saturday.

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CARACAS, Venezuela--An international arbitration panel awarded Exxon Mobil Corp. about $908 million in a verdict over oil assets nationalized by Venezuelan President Hugo Chávez in 2007, the company said late Saturday.

The payout was substantially lower than the $7 billion that Exxon was seeking in restitution and is likely to be a boon for Venezuela's leftist government, which in recent years has embarked on a nationalization campaign to centralize control over key economic sectors.

State oil company Petróleos de Venezuela SA said Monday it will pay Exxon a total of $255 million--after subtracting existing debt--over the next 60 days.

Analysts said the panel's verdict appears to be a victory for Mr. Chávez, who in 2007 seized the U.S. oil giant's Cerro Negro project as part of a wide-scale expropriation campaign.

Exxon spokesman Patrick McGinn said in a statement that the $908 million award by the arbitration panel at the International Chamber of Commerce "represents recovery on a limited, contractual liability of PdVSA that was provided for in the Cerro Negro project agreement."

Of that amount, however, $160 million has already been credited and the remaining $747 million can be paid in cash or by canceling debt.

In a statement Monday, PdVSA said it will subtract from the verdict a series of debts owed by Exxon, including $191 million for purchasing bonds tied to the financing of the Cerro Negro project.

The company, which called the verdict a "successful defense," will also deduct around $300 million for its New York bank accounts that Exxon had successfully managed to have frozen during the early phases of legal actions in 2007. It said the remaining $160 million was awarded by the ICC in counterclaims.

PdVSA called Exxon's claims "exaggerated" and said they "defied logic." The Venezuelan state oil monopoly also pledged to defend itself should Exxon continue to pursue the case.

PdVSA is "netting out other credits, as allowed by the ICC; they are not repudiating the award," said Nomura analyst Boris Segura. He added that in the end the decision is favorable for the Venezuelan government.

To be sure, the South American government may eventually have to pay more to Exxon as both parties await a verdict on a separate suit filed by Exxon's local subsidiary, Mobil Cerro Negro Ltd., against Venezuela before the World Bank's International Centre for Settlement of Investment Disputes, or ICSID.

Exxon's Mr. McGinn said the "larger" ICSID case "is ongoing and is expected to be argued in February."

The Chávez administration currently faces around 20 pending cases at the ICSID. With billions in potential payouts looming, the number of cases has been a concern for holders of Venezuelan sovereign bonds.

The court decision came four years after Exxon left Venezuela in a dispute with the government, which decreed that the state oil monopoly would have the majority stake in joint ventures with foreign partners. By law, PdVSA now holds at least 60% of all oil projects.

Exxon has said it invested around $750 million into the Cerro Negro facility. The company reduced its claim to $7 billion from an initial claim of $12 billion.

Despite the smaller-than-expected ICC panel's compensation for Exxon, the money is still a substantial chunk of change for PdVSA, which posted a net profit of $4 billion during the first half of last year. The monopoly has faced declining oil production and cash-flow problems in recent years as Mr. Chavez has diverted large portions of revenue toward social projects. Critics have said that caused insufficient investment in maintenance.

Venezuelan Oil Minister Rafael Ramirez has said the government planned to pay no more than a total of $2.5 billion between its arbitration cases with Exxon and ConocoPhillips. Chevron Corp., the second-largest U.S. oil company, decided to accept PdVSA's majority stake and remained in Venezuela.

Mr. Ramirez in September threw out the possibility of settling with Exxon out of court, shortly after the country's prosecutor general told reporters that the $6 billion settlement was being negotiated.

Write to Kejal Vyas at kejal.vyas@dowjones.com and Angel Gonzalez at angel.gonzalez@dowjones.com

Credit: By Kejal Vyas And Angel Gonzalez

Subject: Petroleum industry; Arbitration

People: Chavez, Hugo

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Jan 3, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 913285802

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/913285802?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-18

Database: The Wall Street Journal

Corporate News: Panel Deals A Setback To Exxon In Venezuela

Author: Vyas, Kejal; Gonzalez, Angel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]03 Jan 2012: B.5. [Duplicate]

ProQuest document link

Abstract:

Exxon spokesman Patrick McGinn said in a statement that the $908 million award by the arbitration panel at the International Chamber of Commerce "represents recovery on a limited, contractual liability of PdVSA that was provided for in the Cerro Negro project agreement."

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Full text:

CARACAS, Venezuela -- An international arbitration panel awarded Exxon Mobil Corp. about $908 million in a verdict over oil assets nationalized by Venezuelan President Hugo Chavez in 2007, the company said late Saturday.

The payout was substantially lower than the $7 billion that Exxon was seeking in restitution and is likely to be a boon for Venezuela's leftist government, which in recent years has embarked on a nationalization campaign to centralize control over key economic sectors.

State oil company Petroleos de Venezuela SA said Monday it will pay Exxon a total of $255 million -- after subtracting existing debt -- over the next 60 days.

Analysts said the panel's verdict appears to be a victory for Mr. Chavez, who in 2007 seized the U.S. oil giant's Cerro Negro project as part of a wide-scale expropriation campaign.

Exxon spokesman Patrick McGinn said in a statement that the $908 million award by the arbitration panel at the International Chamber of Commerce "represents recovery on a limited, contractual liability of PdVSA that was provided for in the Cerro Negro project agreement."

Of that amount, however, $160 million has already been credited and the remaining $747 million can be paid in cash or by canceling debt.

In a statement, PdVSA said it will subtract from the verdict a series of debts owed by Exxon, including $191 million for purchasing bonds tied to the financing of the Cerro Negro project.

To be sure, Venezuela may eventually have to pay more to Exxon as both parties await a verdict on a separate suit filed by Exxon's local subsidiary against Venezuela before the World Bank's International Centre for Settlement of Investment Disputes.

Exxon has said it invested around $750 million into the Cerro Negro facility.

Credit: By Kejal Vyas and Angel Gonzalez

Subject: Petroleum industry; Settlements & damages; Arbitration; Nationalization

Location: Venezuela

People: Chavez, Hugo

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 9180: International; 4330: Litigation; 8510: Petroleum industry

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.5

Publication year: 2012

Publication date: Jan 3, 2012

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 913313270

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/913313270?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-18

Database: The Wall Street Journal

Exxon Mobil Reviews Japan Operations

Author: Sposato, William; Maxwell, Kenneth

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Jan 2012: n/a.

ProQuest document link

Abstract:

While the U.S. giant said it has "no plans to exit the Japanese market," the talks come as Western oil majors put existing operations under the microscope, redrawing the map to adapt to the changing topography of future energy sources and demand.

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TOKYO--Exxon Mobil Corp. said it is in talks with its majority-controlled Japanese unit, TonenGeneral Sekiyu KK, regarding the possibility of restructuring its nearly $3 billion stake in the oil refiner.

While U.S.-based Exxon said it has "no plans to exit the Japanese market," the talks come as major Western oil companies scrutinize their existing operations in efforts to adapt to the changing topography of future energy sources and demand. Meanwhile, Japan's own refiners are trying to adjust to a long-term slide in gasoline demand as the sluggish domestic economy drives consolidation pressures in the industry.

Exxon, which owns a 50.2% stake in TonenGeneral, Japan's second-biggest refiner by capacity, said in a written statement that it is in discussions with TonenGeneral "about the potential restructuring of its holdings in Japan but no decisions have been made."

Earlier, Reuters reported that Exxon was looking to sell most of its stake in the Japanese refiner and sell other assets in Japan in a deal valued at roughly $5 billion. The report spooked investors in the Japanese company, in which Exxon Mobil has been an investor since 2000, sending the shares as much as 7.5% lower at one stage Wednesday.

TonenGeneral shares closed off 5.8% at ¥792 ($10.32) in Tokyo, while the benchmark Nikkei 225 Stock Average rose 1.2%.

The U.S. oil company said in its statement that reports suggesting it would retreat from Japan are "not based on statements by Exxon Mobil. We have made no announcements and, as a matter of practice, we do not comment on market rumors or speculation." In a separate written statement, TonenGeneral echoed Exxon Mobil's comments.

Japan's refiners cranked up output to meet a temporary spike in demand after the March 11 earthquake and tsunami, but the industry has been contracting for years amid the country's sluggish economy and as energy-efficient machinery--including gasoline-electric hybrid autos--becomes more prevalent.

That has saddled the refining industry with a significant overcapacity problem, triggering costly plant closures in recent years. In November, Idemitsu Kosan Co. said it would permanently close a 120,000-barrel-a-day crude-distillation unit at its Tokuyama refinery in western Japan in March 2014.

The trend has also triggered industry consolidation. In April 2010 JX Holdings Co. was created by integrating Nippon Oil Corp., the country's largest refiner by capacity, and Nippon Mining Holdings Inc., the country's largest copper smelter, which also had oil refining operations.

Meanwhile, Exxon has been gradually distancing itself from refining and marketing globally. The shift comes as Western energy companies adapt to a boom in exploration for hydrocarbons such as shale gas and oil sands once considered too difficult and expensive to extract, but that are now being exploited from Australia to Canada.

Write to William Sposato at william.sposato@dowjones.com and Kenneth Maxwell at kenneth.maxwell@dowjones.com

Credit: By William Sposato And Kenneth Maxwell

Subject: Petroleum industry; Equity stake; Consolidation

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: TonenGeneral Sekiyu KK; NAICS: 324110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Jan 4, 2012

column: Heard on the Street

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 913426099

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/913426099?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-18

Database: The Wall Street Journal

Exxon Reviews Japan Operations; Oil Company Weighs Changes to Stake in Refiner, but Plans to Stay in Market

Author: Sposato, William; Maxwell, Kenneth

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Jan 2012: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

TOKYO--Exxon Mobil Corp. said it is in talks with its majority-controlled Japanese unit, TonenGeneral Sekiyu KK, regarding the possibility of restructuring its nearly $3 billion stake in the oil refiner.

While U.S.-based Exxon said it has "no plans to exit the Japanese market," the talks come as major Western oil companies scrutinize their existing operations in efforts to adapt to the changing topography of future energy sources and demand. Meanwhile, Japan's own refiners are trying to adjust to a long-term slide in gasoline demand as the sluggish domestic economy drives consolidation pressures in the industry.

Exxon, which owns a 50.2% stake in TonenGeneral, Japan's second-biggest refiner by capacity, said in a written statement that it is in discussions with TonenGeneral "about the potential restructuring of its holdings in Japan but no decisions have been made."

Earlier, Reuters reported that Exxon was looking to sell most of its stake in the Japanese refiner and sell other assets in Japan in a deal valued at roughly $5 billion. The report spooked investors in the Japanese company, in which Exxon Mobil has been an investor since 2000, sending the shares as much as 7.5% lower at one stage Wednesday.

TonenGeneral shares closed off 5.8% at ¥792 ($10.32) in Tokyo, while the benchmark Nikkei 225 Stock Average rose 1.2%.

The U.S. oil company said in its statement that reports suggesting it would retreat from Japan are "not based on statements by Exxon Mobil. We have made no announcements and, as a matter of practice, we do not comment on market rumors or speculation." In a separate written statement, TonenGeneral echoed Exxon Mobil's comments.

Japan's refiners cranked up output to meet a temporary spike in demand after the March 11 earthquake and tsunami, but the industry has been contracting for years amid the country's sluggish economy and as energy-efficient machinery--including gasoline-electric hybrid autos--becomes more prevalent.

That has saddled the refining industry with a significant overcapacity problem, triggering costly plant closures in recent years. In November, Idemitsu Kosan Co. said it would permanently close a 120,000-barrel-a-day crude-distillation unit at its Tokuyama refinery in western Japan in March 2014.

The trend has also triggered industry consolidation. In April 2010 JX Holdings Co. was created by integrating Nippon Oil Corp., the country's largest refiner by capacity, and Nippon Mining Holdings Inc., the country's largest copper smelter, which also had oil refining operations.

Meanwhile, Exxon has been gradually distancing itself from refining and marketing globally. The shift comes as Western energy companies adapt to a boom in exploration for hydrocarbons such as shale gas and oil sands once considered too difficult and expensive to extract, but that are now being exploited from Australia to Canada.

Write to William Sposato at william.sposato@dowjones.com and Kenneth Maxwell at kenneth.maxwell@dowjones.com

Credit: By William Sposato and Kenneth Maxwell

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Jan 5, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 913637 997

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/913637997?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-18

Database: The Wall Street Journal

Corporate News: Exxon Reviews Japan Operations

Author: Sposato, William; Maxwell, Kenneth

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]05 Jan 2012: B.8.

ProQuest document link

Abstract:

While U.S.-based Exxon said it has "no plans to exit the Japanese market," the talks come as major Western oil companies scrutinize their existing operations in efforts to adapt to the changing topography of future energy sources and demand.

Links: 360 Link to Full Text

Full text:

TOKYO -- Exxon Mobil Corp. said it is in talks with its majority-controlled Japanese unit, TonenGeneral Sekiyu KK, regarding the possibility of restructuring its nearly $3 billion stake in the oil refiner.

While U.S.-based Exxon said it has "no plans to exit the Japanese market," the talks come as major Western oil companies scrutinize their existing operations in efforts to adapt to the changing topography of future energy sources and demand. Meanwhile, Japan's own refiners are trying to adjust to a long-term slide in gasoline demand as the sluggish domestic economy drives consolidation pressures in the industry.

Exxon, which owns a 50.2% stake in TonenGeneral, Japan's second-biggest refiner by capacity, said in a written statement that it is in discussions with TonenGeneral "about the potential restructuring of its holdings in Japan but no decisions have been made."

Earlier, Reuters reported that Exxon was looking to sell most of its stake in the Japanese refiner and sell other assets in Japan in a deal valued at roughly $5 billion.

The report spooked investors in the Japanese company, in which Exxon has been an investor since 2000.

TonenGeneral shares closed off 5.8% at 792 yen ($10.32) in Tokyo on Wednesday.

The Irving, Texas-based energy company said in its statement that reports suggesting it would retreat from Japan are "not based on statements by Exxon Mobil. We have made no announcements and, as a matter of practice, we do not comment on market rumors or speculation."

In a separate written statement, TonenGeneral echoed Exxon's comments.

Japan's refiners cranked up output to meet a temporary spike in demand after the March 11 earthquake and tsunami, but the industry has been contracting for years amid the country's sluggish economy and as energy-efficient machinery -- including gasoline-electric hybrid autos -- becomes more prevalent.

That has saddled the refining industry with a significant overcapacity problem, triggering costly plant closures in recent years. In November, Idemitsu Kosan Co. said it would permanently close a 120,000-barrel-a-day crude-distillation unit at its Tokuyama refinery in western Japan in March 2014.

The trend has also led to industry consolidation. In April 2010 JX Holdings Co. was created by integrating Nippon Oil Corp., Japan's largest refiner by capacity, and Nippon Mining Holdings Inc., the country's largest copper smelter, which also had oil-refining operations.

Meanwhile, Exxon has been gradually distancing itself from refining and marketing globally. The shift comes as Western energy companies adapt to a boom in exploration for hydrocarbons such as shale gas and oil sands.

Credit: By William Sposato and Kenneth Maxwell

Subject: Petroleum industry; Equity stake

Location: Japan

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: TonenGeneral Sekiyu KK; NAICS: 324110

Classification: 9179: Asia & the Pacific; 8510: Petroleum industry

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.8

Publication year: 2012

Publication date: Jan 5, 2012

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 913688435

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/913688435?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-18

Database: The Wall Street Journal

U.S. Settles With Exxon, Statoil Over Huge Oil Find

Author: Fowler, Tom; Gold, Russell

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Jan 2012: n/a.

ProQuest document link

Abstract:

Federal officials have settled a dispute with Exxon Mobil Corp. and Statoil ASA over one of the largest offshore oil discoveries ever made in the Gulf of Mexico because the companies had failed to come up with a plan to begin producing oil.

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Full text:

Federal officials have settled a dispute with Exxon Mobil Corp. and Statoil ASA over one of the largest offshore oil discoveries ever made in the Gulf of Mexico because the companies had failed to come up with a plan to begin producing oil.

Under the settlement, filed Friday, Exxon Mobil and Statoil will get to keep their leases in the Julia deepwater field--which Exxon estimates could hold one billion barrels of recoverable oil.

Exxon and Statoil also agreed to several major concessions, including a major increase in the royalty rate, which could end up meaning Exxon Mobil pays billions of additional dollars to the federal Treasury over the 35-year life of the oilfield. In addition, it agreed to build and install an offshore platform and begin producing oil by the middle of 2016.

"The settlement will allow Exxon Mobil to develop this very large, but technically challenging, resource as quickly as possible using a phased approach," said company spokesman Patrick McGinn in a statement.

If the lease had expired, Exxon would have faced the prospect it would revert back to the government, essentially losing a multibillion dollar asset.

The stakes in the case were also high for the government, which didn't want to be seen as bending its own rules even as it attempts to strengthen its offshore rules in the wake of the Deepwater Horizon oil spill.

An Interior Department spokeswoman said the agreement "provides incentives for timely and thorough development of the leases, and secures a fair return on those resources to the U.S. Treasury."

While the government extracted several concessions from Exxon, the Texas-based oil giant dodged a major embarrassment and loss of future revenue. Exxon was facing the prospect of having made one of the largest oil finds ever in its century-long history, only to lose it because it failed to follow federal rules for getting a lease extension.

The dispute over the Julia field began in October 2008, about a month before Exxon's 10-year lease expired. It applied for a five-year extension, but was denied because it hadn't set forth a specific development plan. Exxon and its partner Statoil, sued in federal court to prevent the government from taking back the lease.

Write to Russell Gold at russell.gold@wsj.com

Credit: By Tom Fowler And Russell Gold

Subject: Petroleum industry

Location: Gulf of Mexico

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Jan 7, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 914465901

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/914465901?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

U.S. News: U.S. Agrees To Extend Exxon Lease For Oil Find

Author: Fowler, Tom; Gold, Russell

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]07 Jan 2012: A.5.

ProQuest document link

Abstract:

Federal officials have settled a dispute with Exxon Mobil Corp. and Statoil ASA over one of the largest offshore oil discoveries ever made in the Gulf of Mexico because the companies had failed to come up with a plan to begin producing oil.

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Federal officials have settled a dispute with Exxon Mobil Corp. and Statoil ASA over one of the largest offshore oil discoveries ever made in the Gulf of Mexico because the companies had failed to come up with a plan to begin producing oil.

Under the settlement, filed Friday, Exxon Mobil and Statoil will get to keep their leases in the Julia deepwater field -- which Exxon estimates could hold one billion barrels of recoverable oil.

Exxon and Statoil also agreed to several major concessions, including a major increase in the royalty rate, which could end up meaning Exxon Mobil pays billions of additional dollars to the federal Treasury. In addition, it agreed to build and install an offshore platform and begin producing oil by the middle of 2016.

"The settlement will allow Exxon Mobil to develop this very large, but technically challenging, resource as quickly as possible using a phased approach," said company spokesman Patrick McGinn in a statement.

If lease had expired, Exxon would have faced the prospect it would revert back to the government, essentially losing a multibillion dollar asset.

The stakes in the case were also high for the government, which didn't want to be seen as bending its own rules even as it attempts to strengthen its offshore rules in the wake of the Deepwater Horizon oil spill.

An Interior Department spokeswoman said the agreement "provides incentives for timely and thorough development of the leases, and secures a fair return on those resources to the U.S. Treasury."

The dispute over the Julia field began in October 2008, about a month before Exxon's 10-year lease expired. It applied for a five-year extension, but was denied because it hadn't set forth a specific development plan. Exxon and its partner Statoil, sued to prevent the government from taking back the lease.

Credit: By Tom Fowler and Russell Gold

Subject: Petroleum industry

Location: Gulf of Mexico

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.5

Publication year: 2012

Publication date: Jan 7, 2012

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 914619783

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/914619783?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Mobil, JPMorgan Chase: Money Flow Leaders (XOM, JPM)

Author: MARKET DATA STAFF

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Jan 2012: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

Exxon Mobil Corp. topped the list at midday for, which tracks stocks that fell in price but had the largest inflow of money. See the.

JPMorgan Chase & Co. topped the list for, which tracks stocks that rose in price but had the largest outflow of money. See the.

Go to () for complete coverage.

Credit: By MARKET DATA STAFF

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Jan 20, 2012

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 916895915

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/916895915?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-18

Database: The Wall Street Journal

Exxon Mobil to Sell Japan Arm

Author: Baylis, Paul

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Jan 2012: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

TOKYO--TonenGeneral Sekiyu said Sunday it will acquire 99% of the issued shares in Exxon Mobil's Japanese subsidiary, Exxon Mobil Yugen Kaisha, in a deal valued at ¥300 billion ($3.91 billion).

The transaction means Exxon Mobil will give up its controlling stake in TonenGeneral, although it will still have a 22% voting share in the Japanese oil giant, according to the statement. The two companies aim to complete the transaction by June 2012, the statement said.

Exxon Mobil Yugen Kaisha is currently wholly owned by Exxon Mobil's Japanese arm, giving the U.S. company a controlling interest in TonenGeneral.

TonenGeneral, Japan's second-largest refiner after JX Holdings, said declining oil demand and tighter margins in the industry were significant factors behind the transaction.

Credit: By Paul Baylis

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Jan 29, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 918480034

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/918480034?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-18

Database: The Wall Street Journal

Exxon Mobil to Unload Its Subsidiary in Japan

Author: Baylis, Paul; Frischkorn, Brad

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Jan 2012: n/a.

ProQuest document link

Abstract: None available.

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Full text:

TOKYO--Exxon Mobil Corp. said it would restructure its operations in Japan, announcing plans to sell its subsidiary there for ¥300 billion ($3.91 billion) and to give up control of refiner TonenGeneral Sekiyu KK.

Under the deal, TonenGeneral will acquire 99% of the issued shares of the Exxon arm, Exxon Mobil Yugen Kaisha. Currently, the subsidiary is wholly owned by the U.S.-based company.

Exxon Mobil also will give up its controlling interest in TonenGeneral, Japan's second-largest refiner, maintaining a 22% voting share instead.

The companies aim to complete the deal by June.

Exxon Mobil said Sunday's deal will result in "a single, integrated downstream business better positioned to meet Japan's energy needs."

The U.S. company has been distancing itself from the refining-and marketing, or downstream, business globally. Western energy companies have been repositioning to adapt to a boom in exploration for hydrocarbons, such as shale gas and oil sands, once considered too difficult and expensive to extract, but which are now being exploited on an unprecedented scale from Australia to Canada.

Japanese refiners temporarily cranked up output to meet a spike in demand after last year's earthquake and tsunami. But with the economy sluggish for the past several years and more energy-efficient technologies, such as gasoline-electric hybrid cars, becoming more popular, the country's refining business has been contracting.

That has created overcapacity, leading to costly refinery closures. Idemitsu Kosan Co. in November said it would close a 120,000-barrel-a-day crude-distillation unit at its Tokuyama refinery in western Japan in March 2014.

Overcapacity also has triggered consolidation. In April 2010 JX Holdings Inc. was created by the merger of Nippon Oil Corp., Japan's largest refiner by capacity, and copper smelter Nippon Mining Holdings Inc., which had oil-refining operations.

Sunday's deal "definitely represents a real fork in the road for TonenGeneral," said CLSA equity strategist Nicholas Smith. "There are still too many refiners in Japan and too much capacity," he said.

"While the company's chief rival, JX Holdings, has performed an admirable turnaround in terms of boosting efficiency and trimming capacity, we have seen no such signs from TonenGeneral thus far," Mr. Smith said.

Tastunori Kawai of kabu.com Securities said TonenGeneral will lose managerial expertise and that its dividends could be at risk if the Exxon Mobil deal depletes the company's finances.The company will need hefty loans to finance the purchase. "This latest news will still probably surprise investors, and will be a short-term negative that might trigger another fall in TonenGeneral's common stock," he said.

In the longer term, the deal could help foster needed industry consolidation. Mr. Kawai said.

TonenGeneral said it had no plans to change its forecast for a 2011 dividend of ¥38 (50 cents) a share and that it expects to maintain the same payout for 2012.

TonenGeneral's common shares offer a dividend of nearly 3.3%. But that pales in comparison with the 41% loss the shares have taken by closing down in five of the past six years. TonenGeneral's shares are off 11% this year.

Kenneth Maxwell and William Sposato contributed to this article.

Write to Brad Frischkorn at bradford.frischkorn@dowjones.com

Credit: By Paul Baylis and Brad Frischkorn

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Jan 30, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 918548152

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/918548152?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-18

Database: The Wall Street Journal

Corporate News: Exxon Mobil to Unload Its Subsidiary in Japan

Author: Baylis, Paul; Frischkorn, Brad

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]30 Jan 2012: B.3. [Duplicate]

ProQuest document link

Abstract:

[...] with the economy sluggish for the past several years and more energy-efficient technologies, such as gasoline-electric hybrid cars, becoming more popular, the country's refining business has been contracting.

Links: 360 Link to Full Text

Full text:

TOKYO -- Exxon Mobil Corp. said it would restructure its operations in Japan, announcing plans to sell its subsidiary there for 300 billion yen ($3.91 billion) and to give up control of refiner TonenGeneral Sekiyu KK.

Under the deal, TonenGeneral will acquire 99% of the issued shares of the Exxon arm, Exxon Mobil Yugen Kaisha. Currently, the subsidiary is wholly owned by the U.S.-based company.

Exxon Mobil also will give up its controlling interest in TonenGeneral, Japan's second-largest refiner, maintaining a 22% voting share instead.

The companies aim to complete the deal by June.

Exxon Mobil said Sunday's deal will result in "a single, integrated downstream business better positioned to meet Japan's energy needs."

The U.S. company has been distancing itself from the refining-and marketing, or downstream, business globally. Western energy companies have been repositioning to adapt to a boom in exploration for hydrocarbons, such as shale gas and oil sands, once considered too difficult and expensive to extract, but which are now being exploited from Australia to Canada.

Japanese refiners temporarily cranked up output to meet a spike in demand after last year's earthquake and tsunami. But with the economy sluggish for the past several years and more energy-efficient technologies, such as gasoline-electric hybrid cars, becoming more popular, the country's refining business has been contracting.

That has created overcapacity, leading to refinery closures. Idemitsu Kosan Co. in November said it would close a 120,000-barrel-a-day crude-distillation unit at its Tokuyama refinery in western Japan in March 2014.

Overcapacity also has triggered consolidation. In April 2010 JX Holdings Inc. was created by the merger of Nippon Oil Corp., Japan's largest refiner by capacity, and copper smelter Nippon Mining Holdings Inc., which had oil-refining operations.

Tastunori Kawai of kabu.com Securities said TonenGeneral will lose managerial expertise and that its dividends could be at risk if the Exxon Mobil deal depletes the company's finances.

TonenGeneral said it had no plans to change its forecast for a 2011 dividend of 38 yen (50 cents) a share and that it expects to maintain the same payout for 2012.

TonenGeneral's common shares offer a dividend of nearly 3.3%. But that pales in comparison with the 41% loss the shares have taken by closing down in five of the past six years. TonenGeneral's shares are off 11% this year.

---

Kenneth Maxwell and William Sposato contributed to this article.

Credit: By Paul Baylis and Brad Frischkorn

Subject: Petroleum industry; Divestiture; Foreign subsidiaries; Petroleum refineries

Location: United States--US Japan

Company / organization: Name: Exxon Mobil Yugen Kaisha; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: TonenGeneral Sekiyu KK; NAICS: 324110

Classification: 2330: Acquisitions & mergers; 8510: Petroleum industry; 9179: Asia & the Pacific

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2012

Publication date: Jan 30, 2012

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 918568775

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/918568775?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-18

Database: The Wall Street Journal

Exxon Keeps Foot on the Gas Pedal

Author: Fowler, Tom

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 Jan 2012: n/a.

ProQuest document link

Abstract:

Bill Herbert, co-head of research at energy investment bank Simmons & Co. International, said it would take more than just a drop in natural-gas drilling to reduce the surplus of the fuel, but also a cut in oil drilling since oil wells often produce large amounts of natural gas at the same time.

Links: 360 Link to Full Text

Full text:

Exxon Mobil Corp., the largest natural-gas producer in the U.S., said it has no intention of curtailing gas production even as analysts predict prices for the fuel could remain at a historically low level through next year.

The oil-and-gas giant, which reported a 1.6% rise in fourth-quarter profit Tuesday, said it has no plans to cut back on the number of drilling rigs active in North America. Its fourth-quarter U.S. gas production was up 3.5%, while its gas production globally was down 6.6%.

A growing percentage of the company's roughly 70 land-based drilling rigs in the U.S. are being shifted to explore underground formations believed to hold large quantities of liquid fuels that can fetch higher prices than gas, such as ethane, propane and butane. But these areas also contain gas, meaning Exxon will continue to contribute to the glut of the fuel in the U.S.

Exxon said it believed the fuel would continue to attract new consumers. "We remain bullish on the demand side of natural gas as an energy source in the U.S.," said David Rosenthal, vice president of investor relations.

Exxon's decision to continue producing natural gas is in stark contrast to smaller competitors, such as Chesapeake Energy Corp., which said last week it would slash its U.S. natural-gas drilling in half in response to low prices. And it helped send natural-gas futures prices down 21 cents, or 8%, to $2.503 per million British thermal units Tuesday in trading on the New York Mercantile Exchange.

Exxon, the world's largest publicly traded energy company, also reported a profit of $9.4 billion, or $1.97 a share, up from $9.25 billion, or $1.85 a share, in the fourth quarter of 2010. Revenue increased 16% to $121.61 billion.

The results narrowly beat analyst expectations of $1.96 a share, helped by stronger oil prices and higher-than-expected asset sales. Oil prices were over $100 a barrel in the fourth quarter.

Shares of Exxon fell 2.1% to $83.74 in New York Stock Exchange trading, largely in reaction to lower-than-expected global production figures. Quarterly output fell 9% to 4.53 million barrels of oil equivalent per day, mainly because of declining oil-field productivity.

U.S. natural-gas prices declined steeply over the past several years due to a boom in gas production. The successful marriage of two techniques--horizontal drilling and hydraulic fracturing, where millions of gallons of water, sand and chemicals are pumped at high pressure into formations--allowed companies to tap previously inaccessible oil and gas deposits.

The low prices have led producers to cut back on gas drilling. From 1,450 rigs drilling for gas in January 2008, the number has fallen to 777 rigs as of last week, according to Baker Hughes Inc., and is expected to continue to drop. Over that same time period the number of rigs drilling for oil grew from 316 to 1,225.

Bill Herbert, co-head of research at energy investment bank Simmons & Co. International, said it would take more than just a drop in natural-gas drilling to reduce the surplus of the fuel, but also a cut in oil drilling since oil wells often produce large amounts of natural gas at the same time.

"The quickest road-to-Rome, however, would be a sharp correction in oil prices. This would result in very sharp activity reductions in oil as well as gas directed activity," he said in an email.

Exxon's U.S. natural-gas production doubled in 2010 when it acquired XTO Energy for $31 billion. Mr. Rosenthal said the company has driven down operating costs on XTO drilling projects in the 18 months since the acquisition.

The company hopes to export its know-how to overseas unconventional oil and gas fields; it said it drilled two wells into a Polish shale in the fourth quarter, although neither had commercial quantities of natural gas.

Exxon sold $6.9 billion in assets in the quarter, far more than the $1 billion to $1.7 billion reported in recent quarters. Mr. Rosenthal said the figure didn't mark a change in the company's divestment plans but more likely represented the timing of deals which can take many months or even years to come together.

Isabel Ordonez contributed to this article.

Credit: By Tom Fowler

Subject: Natural gas; Petroleum industry; Corporate profits

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Jan 31, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 918773316

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/918773316?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon to Keep Its Foot on Gas Pedal; Energy Giant Won't Curb Production Despite Natural-Gas Slump; Strong Crude Prices Bolster Quarterly Earnings

Author: Fowler, Tom

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Feb 2012: n/a.

ProQuest document link

Abstract:

Bill Herbert, co-head of research at energy investment bank Simmons & Co. International, said it would take more than just a drop in natural-gas drilling to reduce the surplus of the fuel, but also a cut in oil drilling since oil wells often produce large amounts of natural gas at the same time.

Links: 360 Link to Full Text

Full text:

Exxon Mobil Corp., the largest natural-gas producer in the U.S., said it has no intention of curtailing gas production even as analysts predict prices for the fuel could remain at a historically low level through next year.

The oil-and-gas giant, which reported a 1.6% rise in fourth-quarter profit Tuesday, said it has no plans to cut back on the number of drilling rigs active in North America. Its fourth-quarter U.S. gas production was up 3.5%, while its gas production globally was down 6.6%.

A growing percentage of the company's roughly 70 land-based drilling rigs in the U.S. are being shifted to explore underground formations believed to hold large quantities of liquid fuels that can fetch higher prices than gas, such as ethane, propane and butane. But these areas also contain gas, meaning Exxon will continue to contribute to the glut of the fuel in the U.S.

Exxon said it believed the fuel would continue to attract new consumers. "We remain bullish on the demand side of natural gas as an energy source in the U.S.," said David Rosenthal, vice president of investor relations.

Exxon's decision to continue producing natural gas is in stark contrast to smaller competitors, such as Chesapeake Energy Corp., which said last week it would slash its U.S. natural-gas drilling in half in response to low prices. And it helped send natural-gas futures prices down 21 cents, or 8%, to $2.503 per million British thermal units Tuesday in trading on the New York Mercantile Exchange.

Exxon, the world's largest publicly traded energy company, also reported a profit of $9.4 billion, or $1.97 a share, up from $9.25 billion, or $1.85 a share, in the fourth quarter of 2010. Revenue increased 16% to $121.61 billion.

The results narrowly beat analyst expectations of $1.96 a share, helped by stronger oil prices and higher-than-expected asset sales. Oil prices were over $100 a barrel in the fourth quarter.

Shares of Exxon fell 2.1% to $83.74 in New York Stock Exchange trading, largely in reaction to lower-than-expected global production figures. Quarterly output fell 9% to 4.53 million barrels of oil equivalent per day, mainly because of declining oil-field productivity.

U.S. natural-gas prices declined steeply over the past several years due to a boom in gas production. The successful marriage of two techniques--horizontal drilling and hydraulic fracturing, where millions of gallons of water, sand and chemicals are pumped at high pressure into formations--allowed companies to tap previously inaccessible oil and gas deposits.

The low prices have led producers to cut back on gas drilling. From 1,450 rigs drilling for gas in January 2008, the number has fallen to 777 rigs as of last week, according to Baker Hughes Inc., and is expected to continue to drop. Over that same time period the number of rigs drilling for oil grew from 316 to 1,225.

Bill Herbert, co-head of research at energy investment bank Simmons & Co. International, said it would take more than just a drop in natural-gas drilling to reduce the surplus of the fuel, but also a cut in oil drilling since oil wells often produce large amounts of natural gas at the same time.

"The quickest road-to-Rome, however, would be a sharp correction in oil prices. This would result in very sharp activity reductions in oil as well as gas directed activity," he said in an email.

Exxon's U.S. natural-gas production doubled in 2010 when it acquired XTO Energy for $31 billion. Mr. Rosenthal said the company has driven down operating costs on XTO drilling projects in the 18 months since the acquisition.

The company hopes to export its know-how to overseas unconventional oil and gas fields; it said it drilled two wells into a Polish shale in the fourth quarter, although neither had commercial quantities of natural gas.

Exxon sold $6.9 billion in assets in the quarter, far more than the $1 billion to $1.7 billion reported in recent quarters. Mr. Rosenthal said the figure didn't mark a change in the company's divestment plans but more likely represented the timing of deals which can take many months or even years to come together.

Isabel Ordonez contributed to this article.

Credit: By Tom Fowler

Subject: Natural gas; Petroleum industry; Corporate profits

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Feb 1, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 918831496

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/918831496?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon to Keep Foot on Gas Pedal

Author: Fowler, Tom

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]01 Feb 2012: B.1.

ProQuest document link

Abstract:

Bill Herbert, co-head of research at energy investment bank Simmons & Co. International, said it would take more than just a drop in natural-gas drilling to reduce the surplus, but also a cut in oil drilling since oil wells often produce large amounts of natural gas at the same time.

Links: 360 Link to Full Text

Full text:

Exxon Mobil Corp., the largest natural-gas producer in the U.S., said it has no intention of curtailing gas production even as analysts predict prices for the fuel could remain at a historically low level through next year.

The oil-and-gas giant, which reported a 1.6% rise in fourth-quarter profit Tuesday, said it has no plans to cut back on the number of drilling rigs active in North America. Its fourth-quarter U.S. gas production was up 3.5%, while its gas production globally was down 6.6%.

A growing percentage of the company's roughly 70 land-based drilling rigs in the U.S. are being shifted to explore underground formations believed to hold large quantities of liquid fuels that can fetch higher prices than gas, such as ethane, propane and butane. But these areas also contain gas, meaning Exxon will continue to contribute to the glut of the fuel in the U.S.

Exxon said it believed the fuel would continue to attract new consumers. "We remain bullish on the demand side of natural gas as an energy source in the U.S.," said David Rosenthal, vice president of investor relations.

Exxon's decision to continue producing natural gas is in stark contrast to smaller competitors, such as Chesapeake Energy Corp., which said last week it would slash its U.S. natural-gas drilling in half in response to low prices. And it helped send natural-gas futures prices down 21 cents, or 8%, to $2.503 per million British thermal units Tuesday in trading on the New York Mercantile Exchange.

Exxon, the world's largest publicly traded energy company, also reported a profit of $9.4 billion, or $1.97 a share, up from $9.25 billion, or $1.85 a share, a year earlier. Revenue increased 16% to $121.61 billion.

The results beat analyst expectations of $1.96 a share, helped by stronger oil prices and higher-than-expected asset sales. Oil prices were over $100 a barrel in the fourth quarter.

Shares of Exxon fell 2.1% to $83.74 in New York Stock Exchange trading, largely in reaction to lower-than-expected global production figures. Quarterly output fell 9% to 4.53 million barrels of oil equivalent per day, mainly because of declining oil-field productivity.

U.S. natural-gas prices declined steeply over the past several years due to a boom in gas production. The successful marriage of two techniques -- horizontal drilling and hydraulic fracturing, where millions of gallons of water, sand and chemicals are pumped at high pressure into formations -- allowed companies to tap previously inaccessible oil and gas.

The low prices have led producers to cut back on gas drilling. From 1,450 rigs drilling for gas in January 2008, the number has fallen to 777 rigs as of last week, according to Baker Hughes Inc., and is expected to continue to drop. Over that same time period the number of rigs drilling for oil grew from 316 to 1,225.

Bill Herbert, co-head of research at energy investment bank Simmons & Co. International, said it would take more than just a drop in natural-gas drilling to reduce the surplus, but also a cut in oil drilling since oil wells often produce large amounts of natural gas at the same time.

"The quickest road-to-Rome, however, would be a sharp correction in oil prices. This would result in very sharp activity reductions in oil as well as gas directed activity," he said.

Exxon's U.S. natural-gas production doubled in 2010 when it acquired XTO Energy.

The company hopes to export its know-how to overseas unconventional oil and gas fields; it said it drilled two wells into a Polish shale in the fourth quarter, although neither had commercial quantities of natural gas.

Exxon sold $6.9 billion in assets in the quarter, far more than the $1 billion to $1.7 billion reported in recent quarters. Mr. Rosenthal said the figure didn't mark a change in divestment plans but more likely represented the timing of deals, which can take many months or even years to come together.

---

Isabel Ordonez contributed to this article.

Credit: By Tom Fowler

Subject: Natural gas; Petroleum industry; Corporate profits; Petroleum production

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 9180: International; 9110: Company specific; 8510: Petroleum industry; 5310: Production planning & control

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2012

Publication date: Feb 1, 2012

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 918908291

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/918908291?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Overheard: Apple, MicroGoog, Exxon and Shellron

Author: Anonymous

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]10 Feb 2012: C.8.

ProQuest document link

Abstract:

[...] no discussion of Apple's sheer size is complete these days without a comparison to Exxon Mobil, the world's most valuable company until Apple displaced it late last month after reporting blowout first-quarter results.

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[Financial Analysis and Commentary]

In its relentless march toward dominating the world -- or at least how you interact with it -- Apple reached another milestone Thursday. At just under $460 billion, its market capitalization surpassed the combined value of rivals Google and Microsoft, which weigh in at $457 billion, according to FactSet Research data. Only a year ago, Apple's market value was a staggering $109 billion less than MicroGoog's.

Of course, no discussion of Apple's sheer size is complete these days without a comparison to Exxon Mobil, the world's most valuable company until Apple displaced it late last month after reporting blowout first-quarter results.

Apple's market value is now $58 billion, or 14%, higher than Exxon's. Perhaps even more irritating for Big Oil's big guy, however, is another curious example of it trading places with Apple. About a year ago, Exxon was worth more than Chevron and Royal Dutch Shell, its two biggest listed rivals, combined. Today, it trails Shellron by almost $42 billion.

---

overheard@wsj.com

Subject: Stock prices

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: C.8

Publication year: 2012

Publication date: Feb 10, 2012

column: Heard on the Street

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 920779322

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/920779322?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Iraq Blocks Exxon License Bid

Author: Hassan Hafidh

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Feb 2012: n/a.

ProQuest document link

Abstract:

The new bid round, scheduled for May, is expected to add some 10 billion barrels of crude oil and some 29 trillion cubic feet of gas to Iraq's reserves.

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U.S. energy giant Exxon Mobil Corp. will be barred from Iraq's fourth oil- and gas-licensing auction because of the deals it struck with the country's semi-autonomous Kurdistan region, a spokesman for Iraqi Deputy Prime Minister for Energy Hussein al-Shahristani said Monday.

The move comes as Iraq's central government struggles to assert its authority over energy deals struck within its borders amid a continued lack of legislation for the sector.

The Iraqi government considers as invalid any deals signed with the Kurdistan Regional Government, or KRG, which in turn states that all and any deals it has signed comply with the country's new constitution.

"The Iraqi government has decided that Exxon won't be allowed to participate in the next oil- and gas-bidding round," spokesman Faisal Abdullah told The Wall Street Journal.

Iraq is planning to auction 12 promising exploration blocks, seven of which are believed to contain natural gas, and five thought to contain crude.

The new bid round, scheduled for May, is expected to add some 10 billion barrels of crude oil and some 29 trillion cubic feet of gas to Iraq's reserves.

However, it has already been delayed twice amid arguments on whether the contracts offered should be of the production-sharing type wanted by the explorers or the fixed-fee service contracts wanted by the government.

For the next licensing auction, Baghdad has refused to offer industry-standard production-sharing contracts, where the oil company owns a portion of the oil in the ground and can profit from its sale.

It is instead insisting on service contracts that pay companies a fixed fee for the amount of oil they produce.

The fixed-fee service contracts have worked for the redevelopment of existing oil fields in Iraq--albeit with very slim margins for the companies involved--but are unappealing for many companies facing the gamble of oil exploration, said KBC Energy Economics analyst Samuel Ciszuk.

"You don't know what you're going to find," said Mr. Ciszuk. "You have all these uncertainties, the most rigid contract framework...and delays building up because of slow state decision-making."

Mr. al-Shahristani has previously said Exxon would have to choose between its deal to explore six areas in Kurdistan and its central-government contract to develop the 370,000 barrel-a-day West Qurna Phase 1, Iraq's second-biggest field. It has proven reserves of more than 8.7 billion barrels.

"We are still waiting for Exxon to answer our letters in which we warned that it has to choose between contracts in Kurdistan and those in southern Iraq," the spokesman said, adding that depending on Exxon's reply the government would make a decision about its existing contract in the south.

An Exxon media officer in the U.S. declined to comment.

In December, Iraqi Prime Minister Nouri al-Maliki met with senior Exxon executives during a visit to the U.S. and said afterward that the Irving, Texas, company had promised to reconsider its dealings with the KRG.

The KRG has signed nearly 50 oil and gas deals with international oil companies, mostly second-tier or wildcat explorers. The KRG was hopeful that Exxon's presence would ease the passage of other majors, such as Total SA, which is active in Iraq.

Some of the blocks in the Exxon-KRG deal are in a hotly contested oil-rich territory claimed by both the central government and the KRG, stretching from the Iranian border to the east and to the Syrian border in the northwest.

Baghdad has already blacklisted companies that maintain deals with the Kurds, excluding them from working elsewhere in Iraq. Among those is New York-based Hess Corp., which was barred last year from competing in the fourth energy auction.

However, Adnan Al Janabi, chairman of the Oil and Energy Committee in the Iraqi Council of Representatives, last week said that the Oil Ministry doesn't have the legal authority to blacklist Exxon over its Kurdistan contracts.

Iraq--holder of the world's third-largest oil reserves, estimated at 143 billion barrels--auctioned and awarded some 11 oil fields to international oil firms in 2009 and 2010.

James Herron in London contributed to this article.

Credit: By Hassan Hafidh

Subject: Petroleum industry; Iraq War-2003; Natural gas; Prime ministers; Energy economics

Location: Iraq United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 20 12

Publication date: Feb 13, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 921170828

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/921170828?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Mobil, Intel: Money Flow Leaders (XOM, INTC)

Author: MARKET DATA STAFF

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Feb 2012: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

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Exxon Mobil Corp. topped the list at midday for, which tracks stocks that fell in price but had the largest inflow of money. See the.

Intel Corp. topped the list for, which tracks stocks that rose in price but had the largest outflow of money. See the.

Go to () for complete coverage.

Credit: By MARKET DATA STAFF

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Feb 17, 2012

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 921876644

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/921876644?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon's Oil, Gas Reserves Inch Up

Author: Ordonez, Isabel; Lamar, Mia

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Feb 2012: n/a.

ProQuest document link

Abstract:

Exxon Mobil, the world's largest publicly traded company, also said it added 1.8 billion barrels of oil equivalent last year to its proved reserves, which equals 107% of the oil and gas it produced.

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HOUSTON--Exxon Mobil Corp. said Thursday the company's 2011 proved oil-and-gas reserves inched up compared with the previous year.

As of the end of 2011, the company's proved reserves base stood at 24.9 billion oil-equivalent barrels, up from 24.8 billion oil-equivalent barrels in 2010.

Proved reserves are the amount of reserves that can be feasibly recovered at current oil and gas prices.

Exxon Mobil, the world's largest publicly traded company, also said it added 1.8 billion barrels of oil equivalent last year to its proved reserves, which equals 107% of the oil and gas it produced. Excluding the impact of asset sales, reserves additions replaced 116% of production, the company said.

The bulk of reserves additions came from the Kearl Expansion Project in Canada, which totaled one billion oil-equivalent barrels. Proved reserves additions were also made in countries like the U.S., Nigeria and Indonesia, the company said.

Exxon Mobil's 2011 reserve replacement ratio was weaker than the previous year, when its XTO Energy acquisition helped the oil giant post a 226% reserve replacement ratio, said UBS in a note to clients. But the figure was better than what Exxon was reporting before the acquisition.

The company's official reserves figures based on rules set by the Securities and Exchange Commission will be posted on its 10-K, which is generally filed by the end of February.

Shares were recently down 7 cents to $86.85. The stock is up 2.6% since the start of the year, trailing the broader market.

Write to Isabel Ordonez at Isabel.ordonez@dowjones.com and Mia Lamar at mia.lamar@dowjones.com

Credit: By Isabel Ordonez And Mia Lamar

Subject: Oil reserves; Natural gas reserves; Petroleum industry

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Feb 23, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 923001251

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/923001251?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Statoil, Exxon Say Tanzania Offshore Gas Find Is Big

Author: Ordonez, Isabel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Feb 2012: n/a.

ProQuest document link

Abstract:

HOUSTON--Exxon Mobil Corp. and Norway's Statoil ASA said Friday a recent discovery off the coast of Tanzania has proved to hold large quantities of natural gas, further cementing the idea that East Africa could become an exporter of liquefied natural gas to Asian markets.

Links: 360 Link to Full Text

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HOUSTON--Exxon Mobil Corp. and Norway's Statoil ASA said Friday a recent discovery off the coast of Tanzania has proved to hold large quantities of natural gas, further cementing the idea that East Africa could become an exporter of liquefied natural gas to Asian markets.

Analysis of the Zafarani discovery in Block 2 offshore Tanzania showed it holds up to five trillion cubic feet of natural gas, the companies said in a press release. The gas find was announced a week ago.

The drilling success is good news for several East African countries, where offshore oil and gas exploration is picking up speed and prospecting results have been encouraging. Italy's Eni SpA and Anadarko Petroleum Corp. of the U.S. have made large discoveries in neighboring Mozambique. BG Group PLC last year also made a discovery in Tanzania.

"This discovery is...an important event for the future development of the Tanzanian gas industry," Tim Dodson, Statoil's executive vice president for exploration, said in prepared remarks. Statoil is the operator of the block with a 65% interest, while Exxon Mobil has the remaining 35%.

The discovery was the second large gas find Exxon Mobil announced in recent days. On Wednesday, Exxon and its partners exploring for hydrocarbons in the Black Sea unveiled a potentially large natural gas discovery. The Domino-1 exploration well, located in the Neptun Block, encountered 70.7 meters of net gas, implying the field can hold between 1.5 trillion and three trillion cubic feet of natural gas. OMV Petrom SA, a subsidiary of the Austrian oil-and-gas company OMV AG, and Exxon Mobil each hold a 50% interest.

The discovery--the first one offshore Romania--is significant as it opens a new frontier. But production is still several years off, according to OMV Petrom. The field lies in an area awarded to Romania in 2009 by the International Court of Justice after a decades-old dispute with Ukraine.

Katarina Gustafsson contributed to this article.

Write to Isabel Ordonez at Isabel.ordonez@dowjones.com

Credit: By Isabel Ordonez

Subject: Natural gas; Petroleum industry

Location: East Africa

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Feb 24, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 923290341

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/923290341?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon to Spend at Record Level in Coming Years

Author: Ordonez, Isabel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 Feb 2012: n/a.

ProQuest document link

Abstract:

HOUSTON--Exxon Mobil Corp. said Friday it plans spend a record $37 billion annually in capital projects for the foreseeable future, becoming the latest oil giant to unveil an eye-popping capital budget aimed at boosting production and reserves.

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HOUSTON--Exxon Mobil Corp. said Friday it plans spend a record $37 billion annually in capital projects for the foreseeable future, becoming the latest oil giant to unveil an eye-popping capital budget aimed at boosting production and reserves.

"The corporation anticipates an investment profile of about $37 billion per year for the next several years," Exxon said in an annual report filed with the Securities and Exchange Commission. "The corporation's financial strength enables it to make large, long-term capital expenditures." The figure is slightly higher than the record $36.8 billion the Texas-based oil major invested in 2011 and a jump from the $32.2 billion it spent in 2010.

The announcement marks the rebirth of a trend towards bigger spending by the oil majors that was interrupted by the global financial crisis, which caused oil prices to tumble in 2008.

A recovery in crude prices has led the big oil companies to shrug off the uncertainty and keep boosting spending as they seek to fund the projects that will drive production growth and replenish reserves for decades.

But part of the increased spending comes from higher costs for equipment, materials and labor. These projects are getting increasingly expensive as companies push technological boundaries to tap reserves in hard-to-reach places such as deep water and the Arctic.

Rival Chevron Corp. said in December it plans to spend $32.7 billion in capital projects this year, 12% more than in 2011, while ConocoPhillips said its 2012 budget of $14.8 billion will be 11% higher than in 2011.

Exxon Mobil is the world's largest publicly traded oil company

Write to Isabel Ordonez at Isabel.ordonez@dowjones.com

Credit: By Isabel Ordonez

Subject: Petroleum industry; Oil reserves; Capital expenditures

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Securities & Exchange Commission; NAICS: 926150

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Feb 25, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 923293966

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/923293966?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Confirms Deals With Iraqi Kurds

Author: Ordonez, Isabel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Feb 2012: n/a.

ProQuest document link

Abstract:

"Exploration and production activities in the Kurdistan region of Iraq are governed by production sharing contracts negotiated with the regional government of Kurdistan in 2011," Exxon said in its 10-K filed with the Securities and Exchange Commission Friday.

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HOUSTON--Exxon Mobil Corp. confirmed it negotiated exploration and production contracts with Iraq's Kurdistan Regional Government last year.

"Exploration and production activities in the Kurdistan region of Iraq are governed by production sharing contracts negotiated with the regional government of Kurdistan in 2011," Exxon said in its 10-K filed with the Securities and Exchange Commission Friday.

The Irving, Texas-based energy company said the exploration term is for five years with the possibility of two-year extensions, while the production period is 20 years with the right to extend for five years.

The confirmation comes after months of silence by Exxon, which had declined to comment on remarks made by the Kurdistan Regional Government, or KRG, which had said the company signed the deals.

The move has infuriated Iraq's federal government, which considers as invalid any deals signed with the KRG, which in turns states that any and all deals it has signed comply with the country's new constitution.

Some of the blocks in the Exxon-KRG deal are in a hotly contested oil-rich territory claimed by both the central government and the KRG, stretching from the Iranian border in the east to the Syrian border in the northwest.

Early this month, Iraq's federal government said Exxon will be blocked from participating in the fourth licensing round in Iraq. Baghdad has blacklisted companies that maintain deals with the Kurds, excluding them from working elsewhere in Iraq. Among those is New York-based Hess Corp., which was barred last year from competing in the fourth energy auction.

Credit: By Isabel Ordonez

Subject: Petroleum industry

Location: Iraq

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Securities & Exchange Commission; NAICS: 926150

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Feb 27, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 923612829

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/923612829?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Asks Iraq for More Time on Kurdish Deal

Author: Hassan Hafidh

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Mar 2012: n/a.

ProQuest document link

Abstract:

The KRG has signed nearly 50 oil and gas deals with international oil companies, mostly second-tier or wildcat explorers, and was hopeful that Exxon's presence would entice other majors.

Links: 360 Link to Full Text

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Exxon Mobil Corp. has asked the Iraqi central government to give it "few more days" to decide whether or not it will cancel an exploration deal with Iraqi Kurdistan, a deal which Baghdad strongly opposes, a spokesman for Iraq's Deputy Prime Minister for Energy Hussein al-Shahristani said Tuesday.

Iraq has asked the U.S. giant to choose between its deal with the semi-autonomous northern Iraqi region and its central-government contract to develop the 370,000 barrels-a-day West Qurna Phase 1. The impasse means Exxon has also been barred from Iraq's fourth oil-and-gas licensing auction, scheduled for May.

The Iraqi government considers as invalid any deals signed with the Kurdistan Regional Government, or KRG, which in turn insists that such deals comply with the country's constitution. The KRG has signed nearly 50 oil-and-gas deals with international oil companies, mostly second-tier or wildcat explorers, and was hopeful that Exxon's presence would entice other majors.

"[Exxon] has asked the Deputy Prime Minister to give it some more days in order to decide its stance on the contract it signed with Kurdistan," Faisal Abdullah, a spokesman for the Iraqi Oil Ministry, told Dow Jones Newswires. Mr. Abdullah said Exxon's request was submitted last week by a company representative who met with Mr. Shahristani in Baghdad.

The Iraqi government has sent Exxon Mobil three letters asking it to choose between its deal to explore six areas in Kurdistan, and its contract to develop West Qurna Phase 1, which has proven reserves of 8.7 billion barrels.

Mr. Abdullah said the central government is waiting for Exxon's response to its letters, after which Bagdhad will make a decision on the matter.

Last month, Iraq barred Exxon from bidding in its fourth licensing auction in which 12 promising exploration blocks are up for grabs. Exxon has also been excluded from a contract worth up to $10 billion to build a joint water-injection project in southern Iraq.

In December, Iraq's Prime Minister Nouri al-Maliki met with senior Exxon executives during a visit to the U.S., and said afterward that the Irving, Texas-based company had promised to reconsider its dealings with the KRG.

Some of the blocks in the Exxon-KRG deal are in a hotly contested oil-rich territory claimed by both the central government and the KRG, stretching from the Iranian border in the east to the Syrian border in the northwest.

Baghdad has already blacklisted companies that maintain deals with the Kurds, excluding them from working elsewhere in Iraq. Among those is New York, N.Y.-based Hess Corp., which has also been barred from competing in the fourth energy auction.

Tuesday's comments by the Iraqi government led to a large sell-off in shares of Gulf Keystone Petroleum Ltd., which is active in Iraqi Kurdistan. The London-listed explorer has been seen as a potential takeover target following Exxon Mobil's agreement with the KRG, and analysts said the sharp fall in its share price was a sign that some speculative takeover premium was leaking away.

Isabel Ordonez in Houston and James Herron in London contributed to this article.

Credit: By Hassan Hafidh

Subject: Petroleum industry; Prime ministers; Iraq War-2003

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Mar 6, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 926413860

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/926413860?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Rips U.S. Push on Fracking Oversight; CEO Says Regulators' Efforts Threaten Domestic Output

Author: Fowler, Tom

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Mar 2012: n/a.

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Abstract:

Federal efforts to expand oversight of oil and gas drilling are threatening to derail development of U.S. energy without necessarily improving safety, Exxon Mobil Corp. Chief Executive Rex Tillerson said Thursday.

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Federal efforts to expand oversight of oil and gas drilling are threatening to derail development of U.S. energy without necessarily improving safety, Exxon Mobil Corp. Chief Executive Rex Tillerson said Thursday.

The push by the Environmental Protection Agency and a handful of other agencies to have a say in the controversial drilling technique known as hydraulic fracturing, or "fracking," has had little impact so far on energy giant Exxon, Mr. Tillerson said in an interview following the company's analysts meeting in New York on Thursday.

But the federal effort is hampering state-level regulators, who are primarily responsible for overseeing oil and gas operations and in some cases may be putting off updating rules for fear that they will be overruled by federal laws in the coming years, he said.

An EPA spokesman couldn't be reached to comment.

"Our regulatory process has become so complicated by so many duplicative agencies, by so many mandates from Congress, that now it is become a way to stop things from happening," Mr. Tillerson said. "There are a 1,000 ways you can be told 'no' in this country. So people who want to stop activity have a willing partner in the regulatory process and court system."

It is a message Mr. Tillerson is expected to repeat Friday morning when he delivers a keynote address at the CERA Week conference in Houston, an annual event that draws thousands of energy-industry officials.

During Thursday's meeting, one of the few events during the year where Mr. Tillerson fields questions directly from analysts and reporters, Exxon also said it will maintain its record capital spending levels of about $37 billion per year through 2016, for a total of $185 billion. The estimate is significantly higher than the range the company provided last year of $33 billion to $37 billion a year through 2015. Exxon, based in Irving, Texas, is the largest gas producer in the U.S. and the world's largest publicly traded oil company.

The bulk of Exxon's investment is going to be spent on massive capital projects world-wide, the company said, with a total of 21 major oil and gas projects beginning production between 2012 and 2014. In the meantime, however, the company said its 2012 production would dip by about 3%.

The size of the decline came as a surprise to a number of analysts, including Simmons & Co.'s Guy Baber, who said he was forecasting a 2% drop.

"This is just another example of the industry needing to spend far more just to generate the same, or lower, production output," Mr. Baber said in an email.

Despite weak natural-gas prices, which have reached their lowest level in a decade amid a glut of the fuel source, Exxon says it is making money on its natural-gas operations and doesn't need to dial back on gas drilling, as many of its competitors have done.

Mr. Tillerson said the company continued to consider acquiring individual assets, such as acreage in particular exploration and production areas, as opposed to entire companies.

"But you never rule out anything," he said.

Write to Tom Fowler at tom.fowler@wsj.com

Credit: By Tom Fowler

Subject: Petroleum industry; Hydraulic fracturing; Capital expenditures; Natural gas

Location: United States--US

People: Tillerson, Rex W

Company / organization: Name: Environmental Protection Agency--EPA; NAICS: 924110; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Mar 8, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 926802089

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/926802089?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon's Joke on Gas Drillers

Author: Denning, Liam

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Mar 2012: n/a.

ProQuest document link

Abstract:

Exxon claims XTO now sits on 82 trillion cubic feet equivalent of resources, which equates to more than three years of the entire gas consumption of the U.S. at the current rate of demand.

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Kicking off Exxon Mobil's latest analyst day, Chief Executive Rex Tillerson joked that New York's springlike temperature Thursday was "wonderful for a visit" but "really bad for natural-gas prices." The punch line is that Exxon itself is bad for gas prices.

On slide 97 of Exxon's presentation, a chart advertised the 81% expansion in the resources of XTO, the U.S. shale-gas business Exxon acquired for $41 billion in 2010. Exxon claims XTO now sits on 82 trillion cubic feet equivalent of resources, which equates to more than three years of the entire gas consumption of the U.S. at the current rate of demand.

As today's moribund U.S. gas prices show, the early stages of the shale gas renaissance are characterized by the rapid expansion of reserves, far outpacing demand. The entry of heavyweights like Exxon to the business exacerbates this by expanding reserves, driving down costs--and exporting the technology and expertise to do the same thing in places ranging from Canada to Argentina.

For smaller producers, all that extra gas in the ground delays ever further the day that demand catches up with supply and gas prices rise. Exxon, meanwhile, can spend its time becoming a lower-cost competitor and finding even more reserves.

In other words, Exxon can afford to play the long game. It can even laugh about it.

Write to Liam Denning at liam.denning@wsj.com

Credit: By Liam Denning

Subject: Natural gas

Location: United States--US New York

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Mar 8, 2012

column: Heard on the Street

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 926820148

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/926820148?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-18

Database: The Wall Street Journal

Exxon Rips U.S. Push on Fracking Oversight; CEO Says Regulators' Efforts Threaten Domestic Output

Author: Fowler, Tom

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Mar 2012: n/a.

ProQuest document link

Abstract:

A White House spokesman said that "the President has been clear about the importance of domestic oil and gas production, including the central role safe and responsible natural gas development will play in our energy future."

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Federal efforts to expand oversight of oil and gas drilling are threatening to derail development of U.S. energy without necessarily improving safety, Exxon Mobil Corp. Chief Executive Rex Tillerson said Thursday.

The push by the Environmental Protection Agency and a handful of other agencies to have a say in the controversial drilling technique known as hydraulic fracturing, or "fracking," has had little impact so far on energy giant Exxon, Mr. Tillerson said in an interview following the company's analysts meeting in New York on Thursday.

But the federal effort is hampering state-level regulators, who are primarily responsible for overseeing oil and gas operations and in some cases may be putting off updating rules for fear that they will be overruled by federal laws in the coming years, he said.

"Our regulatory process has become so complicated by so many duplicative agencies, by so many mandates from Congress, that now it is become a way to stop things from happening," Mr. Tillerson said. "There are a 1,000 ways you can be told 'no' in this country. So people who want to stop activity have a willing partner in the regulatory process and court system."

It is a message Mr. Tillerson is expected to repeat Friday morning when he delivers a keynote address at the CERA Week conference in Houston, an annual event that draws thousands of energy-industry officials.

A White House spokesman said that "the President has been clear about the importance of domestic oil and gas production, including the central role safe and responsible natural gas development will play in our energy future." He added that the "administration is in the process of developing sensible standards to protect air and water quality, based on important input from stakeholders including industry."

During Thursday's meeting, one of the few events during the year where Mr. Tillerson fields questions directly from analysts and reporters, Exxon also said it will maintain its record capital spending levels of about $37 billion per year through 2016, for a total of $185 billion. The estimate is significantly higher than the range the company provided last year of $33 billion to $37 billion a year through 2015. Exxon, based in Irving, Texas, is the largest gas producer in the U.S. and the world's largest publicly traded oil company.

The bulk of Exxon's investment is going to be spent on massive capital projects world-wide, the company said, with a total of 21 major oil and gas projects beginning production between 2012 and 2014. In the meantime, however, the company said its 2012 production would dip by about 3%.

The size of the decline came as a surprise to a number of analysts, including Simmons & Co.'s Guy Baber, who said he was forecasting a 2% drop.

"This is just another example of the industry needing to spend far more just to generate the same, or lower, production output," Mr. Baber said in an email.

Despite weak natural-gas prices, which have reached their lowest level in a decade amid a glut of the fuel source, Exxon says it is making money on its natural-gas operations and doesn't need to dial back on gas drilling, as many of its competitors have done.

Mr. Tillerson said the company continued to consider acquiring individual assets, such as acreage in particular exploration and production areas, as opposed to entire companies.

"But you never rule out anything," he said.

Write to Tom Fowler at tom.fowler@wsj.com

Credit: By Tom Fowler

Subject: Petroleum industry; Hydraulic fracturing; Capital expenditures; Natural gas

Location: United States--US

People: Tillerson, Rex W

Company / organization: Name: Environmental Protection Agency--EPA; NAICS: 924110; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Mar 9, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 926830953

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/926830953?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-18

Database: The Wall Street Journal

Corporate News: Exxon Rips U.S. Push on Fracking Oversight

Author: Fowler, Tom

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]09 Mar 2012: B.3.

ProQuest document link

Abstract:

A White House spokesman said that "the President has been clear about the importance of domestic oil and gas production, including the central role safe and responsible natural gas development will play in our energy future."

Links: 360 Link to Full Text

Full text:

Federal efforts to expand oversight of oil and gas drilling are threatening to derail development of U.S. energy without necessarily improving safety, Exxon Mobil Corp. Chief Executive Rex Tillerson said Thursday.

The push by the Environmental Protection Agency and a handful of other agencies to have a say in the controversial drilling technique known as hydraulic fracturing, or "fracking," has had little impact so far on energy giant Exxon, Mr. Tillerson said in an interview following the company's analysts meeting in New York on Thursday.

But the federal effort is hampering state-level regulators, who are primarily responsible for overseeing oil and gas operations and in some cases may be putting off updating rules for fear they will be overruled by federal laws in coming years, he said.

"Our regulatory process has become so complicated by so many duplicative agencies, by so many mandates from Congress, that now it is become a way to stop things from happening," Mr. Tillerson said. "There are a 1,000 ways you can be told 'no' in this country. So people who want to stop activity have a willing partner in the regulatory process and court system."

It is a message Mr. Tillerson is expected to repeat Friday morning when he delivers a keynote address at the CERA Week conference in Houston, an annual event that draws thousands of energy-industry officials.

A White House spokesman said that "the President has been clear about the importance of domestic oil and gas production, including the central role safe and responsible natural gas development will play in our energy future." He added that the "administration is in the process of developing sensible standards to protect air and water quality."

During Thursday's meeting, one of the few events during the year where Mr. Tillerson fields questions directly from analysts and reporters, Exxon also said it will maintain its record capital spending levels of about $37 billion per year through 2016, for a total of $185 billion. The estimate is significantly higher than the range the company provided last year of $33 billion to $37 billion a year through 2015. Exxon, based in Irving, Texas, is the largest gas producer in the U.S. and the world's largest publicly traded oil company.

The bulk of Exxon's investment is going to be spent on massive capital projects world-wide, the company said, with a total of 21 major oil and gas projects beginning production between 2012 and 2014. In the meantime, however, the company said its 2012 production would dip by about 3%.

The size of the decline came as a surprise to a number of analysts, including Simmons & Co.'s Guy Baber, who said he was forecasting a 2% drop.

"This is just another example of the industry needing to spend far more just to generate the same, or lower, production output," Mr. Baber said in an email.

Despite weak natural-gas prices, which have reached their lowest level in a decade amid a glut of the fuel source, Exxon says it is making money on its natural-gas operations and doesn't need to dial back on gas drilling, as many of its competitors have done.

Mr. Tillerson said the company continued to consider acquiring individual assets, such as acreage in particular exploration and production areas, as opposed to entire companies.

"But you never rule out anything," he said.

Credit: By Tom Fowler

Subject: Petroleum industry; Hydraulic fracturing; Federal regulation

Location: United States--US

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 4310: Regulation; 8510: Petroleum industry; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2012

Publication date: Mar 9, 2012

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 926867634

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/926867634?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Repro duced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon to Seek Unified Fracking-Disclosure Rules

Author: Ordonez, Isabel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Mar 2012: n/a.

ProQuest document link

Abstract:

Exxon and other large international oil companies have recently acquired large shale-land positions in countries such as Poland that they believe could have similar potential as the U.S. But several European countries have recently banned hydraulic fracturing due to environmental concerns.

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HOUSTON--Exxon Mobil Corp. will ask energy-industry partners and governments in Europe to have the same level of disclosure on hydraulic fracturing achieved in the U.S., Chief Executive Rex Tillerson said Friday.

Exxon Mobil, the world's largest publicly traded oil company, will also work to shed light on concerns about hydraulic fracturing as a cause of irregular seismic activity, he said.

"We will be calling on our government and industry partners to implement in Europe the same level of openness and accountability that FracFocus has delivered in the United States," Mr. Tillerson said at a speech delivered at the IHS CERA conference here. "Unconventional gas development holds tremendous promise in many places in Europe. But we want policy makers and the public to be confident in these proven technologies."

FracFocus.org is an industry-supported website where companies can register and disclose the chemicals they use in hydraulic fracturing, or "fracking." The drilling technique involves sending pressurized water and other materials deep underground to release oil and natural gas trapped within rock formations. Hydraulic fracturing has allowed companies to tap vast new reserves of oil and natural gas, but critics have said the process harms the environment.

Exxon and other large international oil companies have recently acquired large shale-land positions in countries such as Poland that they believe could have similar potential as the U.S. But several European countries have recently banned hydraulic fracturing due to environmental concerns.

"An initiative similar to FracFocus in Europe will allow citizens and communities to begin their consideration of this technology with a strong factual foundation," Mr. Tillerson said. "We believe that will lead to open and fruitful discussion about the risks we manage and the benefits we foresee for shale and tight-sand gas-and-oil development in Europe."

Irving, Texas-based Exxon will also help solve concerns about hydraulic fracturing as a cause of earthquakes, Mr. Tillerson said. "We will support the use of sound science to inform reasonable regulatory frameworks," he said.

But although Exxon supports disclosure and smart regulations, the company said the involvement of the federal government in hydraulic fracturing, which has been regulated by local governments, poses a threat to shale development in the U.S.

"Political considerations based on two- and four-year electoral cycles are a significant hindrance to long-term planning and investment, which can affect jobs and competitiveness for decades," Mr. Tillerson said. "This type of dysfunctional regulation is holding back the American economic recovery, growth and global competitiveness."

Shale-gas development on a global scale is still nascent, but the industry it confident that the resources are "significant" enough that, if developed, they could change the world's energy landscape, Mr.Tillerson said. Lack of infrastructure and the massive number of skilled people needed to develop shale resources are the major hurdles, he added.

Separately, Exxon expects world-wide deep-water production to double by 2040, Mr. Tillerson said.

Om Thursday in New York, Mr. Tillerson said his company remains committed to working in both Kurdistan and southern Iraq, despite pressure from the Iraqi central government to have the company cancel its work in autonomous Kurdistan.

"We're committed to both of those developments and indicated to the government our intention to continue our commitments in both West Qurna (southern Iraq) and Kurdistan," Mr. Tillerson said Thursday in a press conference at the New York Stock Exchange, where the company was holding its annual analyst meeting.

"The country has a lot of issues that it is dealing with that have yet to be resolved. We want to be helpful in that regard and not be a distraction to that, so beyond that I don't think we'll be making any further comments," Mr. Tillerson said.

Tom Fowler contributed to this article.

Write to Isabel Ordonez at Isabel.ordonez@dowjones.com

Credit: By Isabel Ordonez

Subject: Hydraulic fracturing; Petroleum industry; Hydraulics; Natural gas

Location: United States--US

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Mar 9, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 926949400

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/926949400?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

U.S. Bancorp, Exxon Mobil: Money Flow Leaders (USB, XOM)

Author: MARKET DATA STAFF

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Mar 2012: n/a.

ProQuest document link

Abstract: None available.

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Full text:

U.S. Bancorp topped the list in late trading for, which tracks stocks that fell in price but had the largest inflow of money. See the.

Exxon Mobil Corp. topped the list for, which tracks stocks that rose in price but had the largest outflow of money. See the.

Go to () for complete coverage.

Credit: By MARKET DATA STAFF

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Mar 12, 2012

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 927597816

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/927597816?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Iraq Says Exxon Freezes Kurdistan Oil Deal

Author: Hassan Hafidh

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Mar 2012: n/a.

ProQuest document link

Abstract:

The KRG has signed nearly 50 oil and gas deals with international oil companies, mostly second-tier or wildcat explorers.

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Senior Iraqi government officials said Friday that Exxon Mobil Corp. has told Iraq's central government that it has frozen an exploration contract with the nation's Kurdistan region, a deal Baghdad strongly opposes.

"We have received a letter from Exxon in which it stated it freezes its oil contract with Kurdistan," the government official said.

"Although we would prefer Exxon to cancel its deal with Kurdistan, freezing the contract is a step forward," another official from the Iraqi oil ministry said.

Exxon, based in Irving, Texas, wouldn't comment Friday. Last week, Exxon CEO Rex Tillerson said his company remains committed to working in both Kurdistan and southern Iraq.

The semiautonimous Kurdistan Regional Government in northern Iraq is embroiled in a long and often contentious dispute with Iraq's central government over the right to issue oil-exploration licenses in the region.

Baghdad has essentially asked the U.S. oil giant to choose between its deal with the KRG and its contract with the central government to develop the 370,000 barrels-a-day West Qurna Phase 1 field in southern Iraq. The impasse has also led Exxon to be barred from Iraq's fourth oil-and-gas licensing auction, scheduled for May.

The first Iraqi official said Exxon stated it has frozen its contract with the KRG until a new national oil-and-gas law is enacted. A new version of the law was introduced last year but it has been stalled in Parliament.

Exxon is already producing around 370,000 barrels a day of oil from the West Qurna field under a service contract with the Baghdad government. Many other large oil companies, including BP PLC, Royal Dutch Shell PLC, Eni SpA and Lukoil Holdings have similar contracts.

The KRG has signed nearly 50 oil and gas deals with international oil companies, mostly second-tier or wildcat explorers. The KRG hoped Exxon's presence would lead to other oil majors beginning operations in the region.

Credit: By Hassan Hafidh

Subject: Petroleum industry; Petroleum production; Iraq War-2003

Location: Iraq

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Mar 16, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 928460609

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/928460609?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Mobil, Apple: Money Flow Leaders (XOM, AAPL)

Author: MARKET DATA STAFF

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Mar 2012: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

Exxon Mobil Corp. topped the list in late trading for, which tracks stocks that fell in price but had the largest inflow of money. See the.

Apple Inc. topped the list for, which tracks stocks that rose in price but had the largest outflow of money. See the.

Go to () for complete coverage.

Credit: By MARKET DATA STAFF

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Mar 20, 2012

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 929137559

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/929137559?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Chiefs at Exxon Mobil, Chevron Received Hefty Boosts in 2011 Pay

Author: Ordonez, Isabel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Apr 2012: n/a.

ProQuest document link

Abstract:

Chevron, the second-largest U.S. oil company after Exxon Mobil, is fighting a multibillion dollar ruling issued last year against it by an Ecuadorian court, which held the company responsible for environmental and punitive damages stemming from oil operations in Ecuador's Amazon region.

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Exxon Mobil Corp. Chairman and Chief Executive Rex Tillerson received about $35 million in total compensation last year, up 21% from 2010, the company said in a securities filing.

Meanwhile, John Watson, the chairman and CEO of rival Chevron Corp., received about $25 million in total compensation in 2011, up 52% from the previous year, according to Chevron's securities filing.

Mr. Tillerson received around $2.4 million in base salary, $180,000 more than in 2010, and cash bonuses totaling $4.4 million, up from about $3.4 million a year earlier. He also received shares of Exxon stock valued at around $17.9 million, a 16% increase from 2010. Other compensation, including his use of a company aircraft, life insurance and home security, was valued at around $519,230. His pension in 2011 gained in value by around $9.8 million.

Exxon said Mr. Tillerson and other senior executives' compensation received a boost last year because the company's performance continued to be "very strong" compared with its oil industry competitors.

Mr. Tillerson's 2012 salary is expected to increase 8% to $2.6 million, the company said.

At Chevron, Mr. Watson received about $1.6 million in base salary, $91,000 more than a year earlier, and cash bonuses totaling $4 million, up from about $3 million in 2010.

He also received shares of Chevron stock valued at about $5.1 million, a 35% increase from 2010, and he gained $7.2 million by exercising options. Other compensation, such as Mr. Watson's use of company aircraft, life insurance and home security, was valued at about $278,000. Mr. Watson's pension value rose in 2011 by about $6.6 million.

The pay for Chevron Vice President and General Counsel R.H. Pate increased 75% to $7.8 million. Mr. Pate's compensation jumped in part because of his "outstanding management of Ecuador and other major litigation matters," the company said in the filing.

Chevron, the second-largest U.S. oil company after Exxon Mobil, is fighting a multibillion dollar ruling issued last year against it by an Ecuadorian court, which held the company responsible for environmental and punitive damages stemming from oil operations in Ecuador's Amazon region.

Write to Isabel Ordonez at

Credit: By Isabel Ordonez

Subject: Executives; Compensation; Wages & salaries; Company aircraft

People: Tillerson, Rex W

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Apr 12, 2012

Section: Management

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 993561432

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/993561432?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Corporate News: Chiefs at Exxon Mobil, Chevron Received Hefty Boosts in 2011 Pay

Author: Ordonez, Isabel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]13 Apr 2012: B.5.

ProQuest document link

Abstract:

Other compensation, including his use of a company aircraft, life insurance and home security, was valued at around $519,230. Other compensation, such as Mr. Watson's use of company aircraft, life insurance and home security, was valued at about $278,000.

Links: 360 Link to Full Text

Full text:

Exxon Mobil Corp. Chairman and Chief Executive Rex Tillerson received about $35 million in total compensation last year, up 21% from 2010, the company said in a securities filing.

Meanwhile, John Watson, the chairman and CEO of rival Chevron Corp., received about $25 million in total compensation in 2011, up 52% from the previous year, according to Chevron's securities filing.

Mr. Tillerson received around $2.4 million in base salary, $180,000 more than in 2010, and cash bonuses totaling $4.4 million, up from about $3.4 million a year earlier. He also received shares of Exxon stock valued at around $17.9 million, a 16% increase from 2010. Other compensation, including his use of a company aircraft, life insurance and home security, was valued at around $519,230. His pension in 2011 gained in value by around $9.8 million.

Exxon said Mr. Tillerson and other senior executives' compensation received a boost last year because the company's performance continued to be "very strong" compared with its oil industry competitors.

Mr. Tillerson's 2012 salary is expected to increase 8% to $2.6 million, the company said.

At Chevron, Mr. Watson received about $1.6 million in base salary, $91,000 more than a year earlier, and cash bonuses totaling $4 million, up from about $3 million in 2010.

He also received shares of Chevron stock valued at about $5.1 million, a 35% increase from 2010, and he gained $7.2 million by exercising options. Other compensation, such as Mr. Watson's use of company aircraft, life insurance and home security, was valued at about $278,000. Mr. Watson's pension value rose in 2011 by about $6.6 million.

Credit: By Isabel Ordonez

Subject: Petroleum industry; Executive compensation

People: Tillerson, Rex W Watson, John

Company / organization: Name: Chevron Corp; NAICS: 211111, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 8510: Petroleum industry; 2120: Chief executive officers; 9510: Multinational corporations

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.5

Publication year: 2012

Publication date: Apr 13, 2012

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 993974727

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/993974727?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Chevron Battles Exxon for Big Oil's Crown

Author: Denning, Liam

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Apr 2012: n/a.

ProQuest document link

Abstract:

[...] Exxon's stock trades at 9.8 times future earnings, compared with Chevron's 7.7 times. Exxon's fell behind in late 2009, coinciding with the announcement of its $41 billion purchase of U.S. natural-gas producer XTO Energy. [...] gas prices have slumped, diluting Exxon's profits.

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Big Oil's moniker suggests it is a monolith. But the majors are increasingly differentiated, as underlined by recent strategy show-and-tells. ConocoPhillips, for example, will soon split in two, reversing the consolidation that created it. That will leave Chevron and Exxon Mobil as the two U.S. giants.

Exxon has long led in every way. Its market capitalization, $394 billion, is almost double Chevron's. Exxon produced 67% more oil and gas last year. It also earned more profit per barrel of oil equivalent produced than Chevron in eight of the past 12 years, according to consultancy IHS Herold. Its annual return on capital was on average 4.7 percentage points higher than Chevron's, according to Standard & Poor'sCapital IQ. Consequently, Exxon's stock trades at 9.8 times future earnings, compared with Chevron's 7.7 times.

But the performance gap is closing or, in some cases, has closed. Since late 2009, Chevron has earned higher net income per barrel. It has also discovered more oil and gas as a share of output, excluding purchases and estimate revisions, on a one- and three-year view. And it is fast closing the gap on return on capital.

Total shareholder return, incorporating dividends, over the past 10 years tells the story: Chevron's is 237%; Exxon's is 153%. Exxon's fell behind in late 2009, coinciding with the announcement of its $41 billion purchase of U.S. natural-gas producer XTO Energy. Since then, gas prices have slumped, diluting Exxon's profits.

Exxon says that on a long-term view, it has staked out an enviable position in unconventional resources like shale oil and gas. Perhaps, but profitability will likely suffer for some time. By 2015, about 18% of Exxon's output will come from unconventional resources in North America, compared with less than 4% at Chevron, according to Goldman Sachs.

Chevron's relatively greater leverage to global oil prices, rather than U.S. gas, bolstered the company's quarterly update last week. It could also help Chevron finally close the return-on-capital gap altogether.

Moreover, while Chevron hasn't done an XTO-sized deal, it has a good portfolio of unconventional prospects. With gas prices so low, the best prospects hold oil or "wet gas," containing a bigger proportion of higher value natural-gas liquids. Credit Suisse analyst Ed Westlake estimates Chevron's "liquids rich" land portfolio in North America at almost two million net acres and significantly higher than Exxon's.

Raoul LeBlanc, head of global gas at consultancy PFC Energy, says "Chevron in general has more options" when it comes to shifting investment towards liquids in the onshore U.S. He points to a drop in the proportion of wells drilled and operated by Chevron producing "dry" gas to 30% in 2011, down from half for much of the past decade. In contrast, Exxon's share is about 80%, according to PFC's database.

Exxon maintains that it is "well-positioned" and is shifting its considerable resources towards liquids-rich prospects.

At this point, Exxon is essentially in the process of gaining experience in U.S. unconventional resources--a big reason for buying XTO was to bring its expertise in house. The company says it has been "very successful" in retaining XTO's employees.

U.S. onshore development represents a new kind of risk for the majors, who have traditionally focused on so-called megaprojects such as Exxon's Qatari gas operations. But the U.S. shale boom was launched by smaller, more nimble, independent companies. Their success required different skills and, according to Mr. LeBlanc, a "decentralized" approach less suited to the majors' established corporate processes. Shale fields, requiring multiple wells and much trial and error, can be thought of as many small, linked projects rather than a traditional megaproject.

Chevron faces its own challenges in the next few years as it tries to develop Australia's enormous Gorgon liquefied natural gas project on time and on budget. But this, at least, is more traditional territory.

Given Exxon's formidable track record, it is a brave soul who would bet against it over the long term. But Chevron, particularly over the next few years, looks the better bet. The discount to its bigger rival looks ever less defensible.

Liam Denning

Write to Liam Denning at

Credit: By Liam Denning

Subject: Petroleum industry; Energy economics; Natural gas

Location: United States--US

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Apr 15, 2012

column: Heard on the Street

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1000360598

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Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Sets Russian Projects

Author: Fowler, Tom; González, Ángel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Apr 2012: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. and Russian oil firm OAO Rosneft unveiled details about their partnership, including plans to form joint ventures in the Kara Sea and Black Sea and agreements to give Rosneft subsidiaries ownership stakes in three Exxon projects in North America.

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Exxon Mobil Corp. and Russian oil firm OAO Rosneft on Monday unveiled new details of a partnership that will tap oil and gas reserves in the Arctic Ocean and in the Black Sea and will provide a foothold for Rosneft in the U.S. and Canada.

The deal, originally disclosed in August, signaled a significant win for Exxon Mobil over a range of competitors lining up for access to some of the last major untapped oil and gas reserves in the world.

The proposed exploration projects in Russia between Exxon Mobil and Rosneft are in the Kara Sea, north of the Arctic Circle, and in the Black Sea. The companies initially are expected to spend about $3.2 billion developing the two projects.

The North American projects, which were revealed for the first time on Monday, have Rosneft subsidiary Neftegaz Holding America Ltd. gaining a 30% stake in Exxon's La Escalera Ranch project in West Texas, where the oil firm is employing the most advanced exploration techniques. Three exploration wells have been drilled so far in the project, which is expected to hold oil and "wet gas," a mix of natural gas and liquid fuels such as ethane, propane and butane.

Neftegaz also will have the right to buy a 30% stake in 20 still to be determined drilling areas held by Exxon in the western part of the Gulf of Mexico; while another Neftegaz unit will hold a 30% stake in the Cardium formation in Alberta, Canada, where the Russian company hopes to learn more about drilling in unconventional oil fields.

The venture is the first time a Russian government-controlled energy firm has taken a significant stake in an American energy project, said Lysle Brinker, director of equity research at the research firm IHS Herold.

"If anyone could pull it off politically it would be have to be the national oil company of the U.S., which is essentially what Exxon Mobil is," Mr. Brinker said. Exxon is the largest publicly traded oil company in the world by market value.

Other state-owned oil companies have invested in U.S. oil and gas projects in the past, including China Petrochemical Corp., or Sinopec, which announced a $2.5 billion deal with Devon Energy Corp. earlier this year in which it received a one-third stake in five emerging oil and gas fields.

Exxon and Rosneft said they began exploration activity in the Black Sea in September and that their seismic program is 70% complete. It is expected to be completed in the second quarter and exploratory drilling is scheduled to start in 2014.

The companies have started environmental assessments in the Kara Sea in anticipation of a potential exploration well in 2014.

Rosneft and Exxon also agreed to jointly develop technologies to allow drilling in difficult to tap oil fields in Western Siberia, positioning the companies for future joint ventures in Russia.

Exxon shares rose 1.3%, or $1.06, to $84.01 in 4 p.m. trading Monday on the New York Stock Exchange.

Write to Ángel González at

Credit: By Tom Fowler and Ángel González

Subject: Petroleum industry; Joint ventures; Equity stake

Location: Kara Sea Black Sea North America

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: OAO Rosneft; NAICS: 324110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Apr 16, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1000437052

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Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Corporate News: Exxon Sets Russian Projects

Author: Fowler, Tom; Gonzalez, Angel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]17 Apr 2012: B.2.

ProQuest document link

Abstract:

Other state-owned oil companies have invested in U.S. oil and gas projects in the past, including China Petrochemical Corp., or Sinopec, which announced a $2.5 billion deal with Devon Energy Corp. earlier this year in which it received a one-third stake in five emerging oil and gas fields.

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Exxon Mobil Corp. and Russian oil firm OAO Rosneft on Monday unveiled new details of a partnership that will tap oil and gas reserves in the Arctic Ocean and in the Black Sea and will provide a foothold for Rosneft in the U.S. and Canada.

The deal, originally disclosed in August, signaled a significant win for Exxon Mobil over a range of competitors lining up for access to some of the last major untapped oil and gas reserves in the world.

The proposed exploration projects in Russia between Exxon Mobil and Rosneft are in the Kara Sea, north of the Arctic Circle, and in the Black Sea. The companies initially are expected to spend about $3.2 billion developing the two projects.

The North American projects, which were revealed for the first time on Monday, have Rosneft subsidiary Neftegaz Holding America Ltd. gaining a 30% stake in Exxon's La Escalera Ranch project in West Texas, where the oil firm is employing the most advanced exploration techniques. Three exploration wells have been drilled so far in the project, which is expected to hold oil and "wet gas," a mix of natural gas and liquid fuels such as ethane, propane and butane.

Neftegaz also will have the right to buy a 30% stake in 20 still to be determined drilling areas held by Exxon in the western part of the Gulf of Mexico; while another Neftegaz unit will hold a 30% stake in the Cardium formation in Alberta, Canada, where the Russian company hopes to learn more about drilling in unconventional oil fields.

The venture is the first time a Russian government-controlled energy firm has taken a significant stake in an American energy project, said Lysle Brinker, director of equity research at the research firm IHS Herold.

"If anyone could pull it off politically it would be have to be the national oil company of the U.S., which is essentially what Exxon Mobil is," Mr. Brinker said. Exxon is the largest publicly traded oil company in the world by market value.

Other state-owned oil companies have invested in U.S. oil and gas projects in the past, including China Petrochemical Corp., or Sinopec, which announced a $2.5 billion deal with Devon Energy Corp. earlier this year in which it received a one-third stake in five emerging oil and gas fields.

Exxon and Rosneft said they began exploration activity in the Black Sea in September and that their seismic program is 70% complete. It is expected to be completed in the second quarter and exploratory drilling is scheduled to start in 2014.

The companies have started environmental assessments in the Kara Sea in anticipation of a potential exploration well in 2014.

Rosneft and Exxon also agreed to jointly develop technologies to allow drilling in difficult to tap oil fields in Western Siberia, positioning the companies for future joint ventures in Russia.

Exxon shares rose 1.3%, or $1.06, to $84.01 in 4 p.m. trading Monday on the New York Stock Exchange.

Credit: By Tom Fowler and Angel Gonzalez

Subject: Petroleum industry; Partnerships; Oil exploration

Location: Black Sea United States--US Kara Sea Arctic Ocean

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: OAO Rosneft; NAICS: 324110

Classification: 9190: United States; 8510: Petroleum industry

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.2

Publication year: 2012

Publication date: Apr 17, 2012

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1000893976

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1000893976?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Iraq Bars Exxon From Energy Auction

Author: Hassan Hafidh

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Apr 2012: n/a.

ProQuest document link

Abstract:

Earlier this month the KRG suspended the export of some 90,000 barrels of oil a day through the Baghdad export pipeline over payment issues, while Iraq's deputy prime minister, Hussein al-Shahristani, accused the Kurdish authorities of allowing the smuggling $6.5 billion worth of oil and oil products via Iran for sale in Iran, Afghanistan and Pakistan in 2010 and 2011, something the Kurds denied.

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Iraq Thursday officially barred U.S. energy giant Exxon Mobil Corp. from taking part in the country's fourth oil- and gas-licensing auction, scheduled for May, because of deals it struck with the semiautonomous Kurdistan region.

Iraq has asked the Texas-based company to choose between its deals with the Kurdistan Regional Government in northern Iraq and its central-government contract to develop the giant West Qurna-1 oil field n the south. Exxon last month told the Baghdad government it froze its deals with the KRG, but the government wants the deals completely canceled.

"We want more action from Exxon," said Sabah Abdul Kadhim, deputy of the Iraqi Oil Ministry's petroleum contracts. "We want Exxon to cancel its Kurdistan deals."

Mr. Abdul Kadhim warned that Exxon could face further action if it didn't terminate its deals with Kurdistan. He didn't explain what action would be taken, but he is thought to be referring to West Qurna-1.

"So far Exxon's West Qurna-1 contract is valid," Mr. Abdul Kadhim said, however.

An Exxon media officer in the U.S. declined to comment.

Exxon's deals with the KRG have angered Baghdad, which maintains that it must approve all deals signed within Iraq. Some of the Kurdistan blocks are in a hotly contested oil-rich territory claimed by both the central government and the KRG. The territory stretches from the Iranian border in the east to the Syrian border in the northwest.

Analysts also said Iraq was angry with Exxon's stance. While Exxon informed Baghdad that it has frozen its deals with Kurdistan, its chief executive, Rex Tillerson, recently told KRG President Massoud Barzani that it will continue its operations in Kurdistan.

Tension between Baghdad and Kurdistan has escalated over the last few weeks. Earlier this month the KRG suspended the export of some 90,000 barrels of oil a day through the Baghdad export pipeline over payment issues, while Iraq's deputy prime minister, Hussein al-Shahristani, accused the Kurdish authorities of allowing the smuggling $6.5 billion worth of oil and oil products via Iran for sale in Iran, Afghanistan and Pakistan in 2010 and 2011, something the Kurds denied.

At West Qurna-1, Exxon and minority partner Royal Dutch Shell PLC have raised output to nearly 400,000 barrels a day from 244,000 barrels a day when the pair signed up for the project in early 2010. The contract targets eventual output of 2.825 million barrels a day.

The venture will get some $1.90 for each extra barrel of oil produced above the 244,000 barrels a day baseline. Were the contract to be terminated, Exxon and Shell would lose some $106.7 million a year at current output rates and a potential $1.8 billion a year when the production plateau is reached in 2017.

The KRG has signed nearly 50 oil and gas deals with international oil companies, mostly second-tier or wildcat explorers. The KRG was hopeful that Exxon's presence would ease the passage of other majors, such as Total SA, which is active in Iraq.

In May Iraq plans to auction 12 promising exploration blocks, seven of which are believed to contain natural gas, and five thought to contain crude. The twice-delayed bidding round is expected to add some 10 billion barrels of oil and some 29 trillion cubic feet of gas to Iraq's reserves.

Tom Fowler contributed to this article.

Write to Hassan Hafidh at

Credit: By Hassan Hafidh

Subject: Petroleum industry; Iraq War-2003; Oil sands; Natural gas

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Apr 19, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1002596203

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1002596203?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Wells Fargo, Exxon Mobil: Money Flow Leaders (WFC, XOM)

Author: MARKET DATA STAFF

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Apr 2012: n/a.

ProQuest document link

Abstract: None available.

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Wells Fargo & Co. topped the list in late trading for, which tracks stocks that fell in price but had the largest inflow of money. See the.

Exxon Mobil Corp. topped the list for, which tracks stocks that rose in price but had the largest outflow of money. See the.

Go to () for complete coverage.

Credit: By MARKET DATA STAFF

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Apr 20, 2012

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1005092964

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Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Corporate News: Russia to Embrace Energy Partners --- Fuel Czar Says More Foreign-Investment Pacts May Follow Exxon Deal to Help Tap Resources

Author: Gonzalez, Angel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]21 Apr 2012: B.4.

ProQuest document link

Abstract:

Russia's latest bid for foreign participation is an indication the country, which jostles with Saudi Arabia for the rank of top global oil producer, is aware of the challenges it faces maintaining production as conventional energy sources decline.

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Igor Sechin, Russia's deputy prime minister and a close ally of President-elect Vladimir Putin, estimated that by 2030, up to 40% of Russia's oil output would stem from untapped sources in the Arctic waters and the Black Sea -- which it needs foreign assistance to unlock.

A joint venture between state-run Russian giant OAO Rosneft and Exxon could eventually recover about 90 billion barrels of oil equivalent in oil and gas in those areas, the partners estimate. But first they will have to find oil in hostile climates and then set up airports, pipelines and dozens of iceberg-resistant offshore platforms. The deal, finalized earlier this week, gives Exxon a one-third stake in production companies in the Black Sea and the Arctic offshore. It also gives Rosneft a stake in three of Exxon's North American projects.

"It's a long-term collaboration, which would be extended for decades -- 30, 40 or 50 years," Mr. Sechin, 52 years old, said in an interview Wednesday during his first visit to the U.S. "We'll give jobs to hundreds of thousands of people," both in the U.S. and Russia, he said.

Mr. Sechin said he expects similar deals with other firms will occur in the near future. The Exxon deal was "quite special, but there will be others," he said.

Russia's latest bid for foreign participation is an indication the country, which jostles with Saudi Arabia for the rank of top global oil producer, is aware of the challenges it faces maintaining production as conventional energy sources decline.

Exxon's landmark deal with Russia is a boon for the world's largest publicly traded oil company, which needs to replace the vast amounts of crude it extracts from the ground every year with new reserves.

The "flagship" Exxon-Rosneft effort could generate investments of $200 billion to $300 billion by the partners over several decades, Mr. Sechin said.

To reduce risk, the Russian government is softening the taxes that will be imposed on such projects. Exxon CEO Rex Tillerson personally asked Mr. Putin for more favorable terms, Mr. Sechin added.

Mr. Sechin's visit, which included a presentation to U.S. analysts on Wednesday in New York and a visit to Exxon facilities in Houston, comes after a decade of difficulties for foreign investors seeking a piece of Russia's massive oil wealth.

Last year an Arctic oil alliance between Rosneft and BP PLC collapsed amid a conflict with BP's other local partners. Last month, a final decision on the giant Shtokman liquefied-natural-gas project, in which France's Total SA, Statoil ASA of Norway and Russia's state-run OAO Gazprom are participating, was delayed.

Amy Myers Jaffe, an energy specialist at Rice University's Baker Institute, said Russia's latest overture is an attempt to compete for scarce global capital that might otherwise go to energy projects in Canada, Australia or Africa.

But because Russia's nationalistic streak remains unchanged, she said, "ultimately there are a lot of unknowns" for companies following Exxon's lead there.

The multilingual Mr. Sechinsaid he didn't know what his role would be in Mr. Putin's new government, set to take office in May. "Man proposes, and God disposes," he said in Spanish.

Credit: By Angel Gonzalez

Subject: Petroleum industry; Joint ventures; Offshore oil exploration & development

Location: Black Sea United States--US Russia

People: Putin, Vladimir

Company / organization: Name: OAO Rosneft; NAICS: 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 8510: Petroleum industry; 9180: International

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.4

Publication year: 2012

Publication date: Apr 21, 2012

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1008552752

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1008552752?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Russia to Embrace Energy Partners; Fuel Czar Says More Foreign-Investment Pacts May Follow Exxon Deal to Help Tap Resources

Author: González, Ángel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Apr 2012: n/a.

ProQuest document link

Abstract: None available.

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NEW YORK--Russia is counting on foreign investment spearheaded by U.S. oil behemoth Exxon Mobil Corp. to defend its status as an oil superpower, the nation's energy czar said in an interview with The Wall Street Journal.

Igor Sechin, Russia's deputy prime minister and a close ally of President-elect Vladimir Putin, estimated that by 2030, up to 40% of Russia's oil output would stem from untapped sources in the Arctic waters and the Black Sea--which it needs foreign assistance to unlock.

A joint venture between state-run Russian giant OAO Rosneft and Exxon could eventually recover about 90 billion barrels of oil equivalent in oil and gas in those areas, the partners estimate. But first they will have to find oil in hostile climates and then set up massive airports, pipelines and dozens of iceberg-resistant offshore platforms. The deal, finalized earlier this week, gives Exxon a one-third stake in production companies in the Black Sea and the Arctic offshore. It also gives Rosneft a stake in three of Exxon's North American projects.

"It's a long-term collaboration, which would be extended for decades--30, 40 or 50 years," Mr. Sechin, 52 years old, said in an interview Wednesday during his first visit to the U.S. "We'll give jobs to hundreds of thousands of people," both in the U.S. and Russia, he said.

Mr. Sechin said he expects similar deals with other firms will occur in the near future. The Exxon deal was "quite special, but there will be others," he said.

Russia's latest bid for foreign participation is an indication the country, which jostles with Saudi Arabia for the rank of top global oil producer, is aware of the challenges it faces maintaining production as conventional energy sources decline.

Exxon's landmark deal with Russia is a boon for the world's largest publicly traded oil company, which needs to replace the vast amounts of crude it extracts from the ground every year with new reserves.

The "flagship" Exxon-Rosneft effort could generate investments of $200 billion to $300 billion by the partners over several decades, Mr. Sechin said.

To reduce risk, the Russian government is softening the taxes that will be imposed on such projects. Exxon CEO Rex Tillerson, who was based in Russia earlier in his career, personally asked Mr. Putin for more favorable terms, Mr. Sechin added.

Mr. Sechin's visit, which included a presentation to U.S. analysts on Wednesday in New York and a visit to Exxon facilities in Houston, comes after a decade of difficulties for foreign investors seeking a piece of Russia's massive oil wealth.

Last year an Arctic oil alliance between Rosneft and BP PLC collapsed amid a conflict with BP's other local partners. Last month, a final decision on the giant Shtokman liquefied-natural-gas project, in which France's Total SA, Statoil ASA of Norway and Russia's state-run OAO Gazprom are participating, was delayed.

Amy Myers Jaffe, an energy specialist at Rice University's Baker Institute, said Russia's latest overture is an attempt to compete for scarce global capital that might otherwise go to energy projects in Canada, Australia or Africa.

But because Russia's nationalistic streak remains unchanged, she said, "ultimately there are a lot of unknowns" for oil companies following Exxon's lead there.

The multilingual Mr. Sechinsaid he didn't know what his role would be in Mr. Putin's new government, set to take office in May. "Man proposes, and God disposes," he said in Spanish.

Write to Ángel González at

Credit: By Ángel González

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Apr 21, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 10086515 71

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1008651571?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Struggles as Shell Thrives

Author: Fowler, Tom

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 Apr 2012: n/a.

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Abstract:

Speaking to analysts in a conference call, Exxon Vice President of Investor Relations David Rosenthal said the company is reducing the number of rigs drilling for natural gas in the U.S. and switching some of them to oil-rich areas such as the North Dakota Bakken Shale, West Texas's Permian Basin and Oklahoma's Woodford Ardmore.

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Exxon Mobil Corp. reported an 11% decline in first-quarter earnings due to lower oil and gas production and a drop in chemical-business profits, offsetting high global crude prices and improved refining results.

The world's largest oil company by market value reported net income of $9.45 billion, or $2 a share, down from $10.65 billion, or $2.14 a share, a year earlier. Revenue increased 8.8% to $124.05 billion.

Exploration-and-production income was $7.8 billion, a 10% drop from a year earlier, as total production fell 5.5% to 4.55 million barrels of oil equivalent per day.

Exxon's chemicals business saw profit drop 54% to $701 million, but refining-and-marketing earnings climbed 44% to $1.5 billion.

The performance was far below analyst expectations for earnings of $2.09 per share, while production also missed projections.

While Exxon struggled, rival Royal Dutch/Shell PLC appeared to thrive, with first-quarter adjusted profit climbing 16% to $7.3 billion, thanks in part to sales of natural gas in non-U.S. markets, where prices are tied to oil prices.

Shell's exploration-and-production income was up 35% to $6.3 billion while oil-and-gas production was 3.6 million barrels of oil equivalent per day, an increase of 1.4%.

Shares of Exxon slipped 0.9% to $86.07. Class B shares of Shell closed 3.5% higher at £22.66 ($36.58) in London.

Philip Weiss, an analyst with Argus Research, said some of Exxon's earnings miss this quarter is due to timing issues on some projects where it partners with other companies. In many of those deals they are only allowed to sell a certain amount of oil and gas per quarter, even if the projects produce more. That means the Irving, Texas, oil giant can't report income for that production until later quarters.

"But what I found more troubling this quarter was that their production mix ended up a bit more gassy than I expected," Mr. Weiss said, with nearly 51% of production coming from natural gas.

Exxon's U.S. natural-gas production, which has been watched closely because of the company's past insistence if didn't need to ease up on output as prices declined, slipped 1.8% from the fourth quarter and was up less than 1% from a year earlier. The company said it was continuing to shift its focus from dry natural-gas production to fields that produced oil and so-called wet gas, a mix of natural gas and liquid fuels such as ethane, propane and butane that fetch higher prices than dry gas.

Exxon's onshore U.S. rig count is also dropping, from an average of 72 rigs last year to 64 rigs this week, said David Rosenthal, vice president of investor relations.

Exxon's financial strength, including some $19.1 billion in cash at the end of the first quarter, means it doesn't feel pressured to slash U.S. gas production, said Mr. Rosenthal, but during Thursday's call with analysts he gave greater emphasis to future production from oil and other nondry-gas projects than in past earnings calls.

"If you look at the projects we have scheduled to come on line between now and 2016, 80% of them will be liquids production," Mr. Rosenthal said.

The change in drilling focus follows similar moves by other energy producers that have seen cash flows and earnings hit by depressed natural-gas prices, which have been trading at their lowest point in a decade at around $2 per million British thermal units.

The average price at which Exxon sold its natural-gas production in the first quarter was $2.74 per thousand cubic feet, down 20% from the same period a year earlier. The company's realized price for crude oil was $105.68 a barrel, 3% higher than a year earlier.

Despite the different quarterly results Exxon and Shell both said Thursday they are considering new U.S. projects that would take advantage of the 10- year low in natural-gas prices.

Mr. Rosenthal said the company is "studying and assessing the opportunities," including exporting U.S. natural gas as a liquid and expanding its U.S. chemical plants that use natural gas as a raw material. The company is a partner in the recently opened Golden Pass liquefied-natural-gas import terminal near Port Arthur, Texas, which could be expanded to include export capacity, according to analysts.

Shell Chief Financial Officer Simon Henry said on a conference call Thursday his company is looking at sites in Texas and Louisiana for a possible natural-gas-to-liquids plant that would turn natural gas into a fuel like diesel. The Wall Street Journal reported on the project plans earlier this month.

Meanwhile, Shell raised the amount of asset sales it plans for this year as it posted consensus-beating adjusted profit.

"Asset sales for 2012 are likely to be over $4 billion, compared with our earlier guidance of $2 billion to $3 billion," CEO Peter Voser said. He didn't specify where or what assets would be sold.

The Anglo-Dutch company said its clean current cost of supplies earnings, a keenly watched figure that strips out gains or losses from inventories and other nonoperating items, was $7.28 billion in the three months ended March 31, up 16% from $6.29 billion a year earlier. That was above analysts' expectations of $6.75 billion. The adjusted figure is broadly comparable with net income under U.S. accounting rules.

Total oil-and-gas production was 3.552 million barrels of oil equivalent per day, an increase of about 1.4% on the year.

However, net profit for the quarter slipped 0.7% to $8.72 billion from $8.78 billion a year earlier. Higher purchasing costs, which rose nearly 11%, took some of the shine off the bottom line. Group revenue was $123.77 billion, up 7.8%.

Isabel Ordonez and Alexis Flynn contributed to this story.

Write to Isabel Ordonez at

Corrections & Amplifications

Shell's oil-and-gas production increased 1.4%. An earlier version of this story incorrectly stated it was 4%.

Credit: By Tom Fowler

Subject: Natural gas; Petroleum industry; Oil prices; Petroleum production; Stock prices; Corporate profits

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Apr 26, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1009646416

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1009646416?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Clear Difference Between Shell and Exxon

Author: Denning, Liam; Peaple, Andrew

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 Apr 2012: n/a.

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Abstract:

Natural gas figures large in these two oil majors' long-term strategies and it also loomed over their first-quarter results released Thursday.

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Both Exxon Mobil and Royal Dutch Shell want investors to embrace the invisible.

Natural gas figures large in these two oil majors' long-term strategies and it also loomed over their first-quarter results released Thursday. The similarities ended there however.

Shell expects 2012 to be the first year its gas output consistently exceeds that of oil. Earnings from its gas business more than doubled in the first quarter, helping the company beat the consensus forecast overall. Contrast that with Exxon, which missed expectations mainly because of weaker upstream numbers that include profits from gas output.

In the global gas game, location is critical. With U.S. gas prices moribund, Exxon's big bet on the fuel via 2010's purchase of XTO Energy still drags on profits. Gas sold in Europe and Asia fetches much higher prices. In the first quarter, only 5% of Shell's output was U.S. gas compared with 14% for Exxon.

In an industry with long and lengthening project lead-times, oil majors on any given day are a product of spending decisions made years before. Having spent much of the past decade reinvesting after its reserves debacle, Shell is now enjoying the payoff from major gas projects, primarily in Qatar. Indeed, shareholders would be justified in griping as to why Shell just raised its dividend a measly 2.4%.

Exxon, meanwhile, must now deal with the legacy of its XTO deal, with higher exposure to U.S. gas and a bigger asset base hurting return on capital. The resulting need to keep investors onside explains the 21% hike in its dividend to make it the world's biggest aggregate shareholder payout. Even if the future really is invisible, shareholders usually want something tangible upfront.

Write to Liam Denning at and Andrew Peaple at

Credit: By Liam Denning And Andrew Peaple

Subject: Petroleum industry; Oil sands

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Apr 26, 2012

column: Heard on the Street

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1009736072

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1009736072?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Struggles As Shell Thrives

Author: Fowler, Tom

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]27 Apr 2012: B.6.

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Abstract:

Exxon Mobil Corp. reported an 11% decline in first-quarter earnings due to lower oil and gas production and a drop in chemical-business profit, offsetting high global crude prices and improved refining results.

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Exxon Mobil Corp. reported an 11% decline in first-quarter earnings due to lower oil and gas production and a drop in chemical-business profit, offsetting high global crude prices and improved refining results.

The world's largest oil company by market value reported net income of $9.45 billion, or $2 a share, down from $10.65 billion, or $2.14 a share, a year earlier. Revenue increased 8.8% to $124.05 billion.

Exploration-and-production income was $7.8 billion, a 10% drop from a year ago, as production fell 5.5% to 4.55 million barrels of oil equivalent a day.

Exxon's chemicals business profit fell 54% to $701 million, but refining-and-marketing earnings climbed 44% to $1.5 billion.

The performance was below analyst expectations for earnings of $2.09 a share; its production also missed projections.

While Exxon struggled, rival Royal Dutch/Shell PLC appeared to thrive, reporting first-quarter adjusted profit up 16% to $7.3 billion, due in part to sales of natural gas in non-U.S. markets.

Shell's exploration-and-production income was up 35% to $6.3 billion while oil-and-gas production was 3.6 million barrels of oil equivalent per day, an increase of 1.4%.

Philip Weiss, an analyst with Argus Research, said some of Exxon's earnings miss was due to timing issues on some projects where it partners with other companies. In many of those deals, it is only allowed to sell a certain amount of oil and gas a quarter, even if the projects produce more. That means the Irving, Texas, company can't report income for that production until later quarters.

Exxon's U.S. natural-gas production, which has been watched closely because of the company's past insistence it didn't need to ease up on output as prices declined, slipped 1.8% from the fourth quarter and was up less than 1% from a year earlier. The company said it is continuing to shift its focus from dry natural-gas production to fields that produced oil and so-called wet gas, a mix of natural gas and liquid fuels such as propane that fetch higher prices than dry gas.

Exxon's onshore U.S. rig count also dropped, from an average of 72 rigs in the first quarter of 2011 to an average of 64 rigs in the same quarter of 2012, said David Rosenthal, vice president of investor relations.

Exxon's financial strength, including some $19.1 billion in cash at the end of the first quarter, means it doesn't feel pressured to slash U.S. gas production, said Mr. Rosenthal, but during Thursday's call with analysts he gave greater emphasis to future production from oil and other wet gas projects than in past earnings calls.

The average price at which Exxon sold its natural-gas production in the first quarter was $2.74 per thousand cubic feet, down 20% from the same period a year earlier. Its realized price for crude was $105.68 a barrel, 3% higher than a year earlier.

Despite the different quarterly results Exxon and Shell both said Thursday they are considering new U.S. projects that would take advantage of the 10- year low in natural-gas prices.

Mr. Rosenthal indicated Exxon is studying and assessing exporting U.S. natural gas as a liquid and expanding its U.S. chemical plants that use natural gas as a raw material. The company is a partner in the recently opened Golden Pass liquefied-natural-gas import terminal near Port Arthur, Texas.

Shell CFO Simon Henry said his company is looking at Texas and Louisiana for a possible natural-gas-to-liquids plant.

---

Isabel Ordonez contributed to this article.

Credit: By Tom Fowler

Subject: Petroleum industry; Corporate profits; Financial performance

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110

Classification: 8510: Petroleum industry; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.6

Publication year: 2012

Publication date: Apr 27, 2012

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1009794208

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1009794208?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon to Relinquish Block in Brazil's Santos Basin

Author: Gonzalez, Angel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Apr 2012: n/a.

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Abstract:

HOUSTON--Exxon Mobil Corp. said Friday it is abandoning its only exploration effort in the Santos Basin, epicenter of Brazil's offshore oil boom, an area where it has obtained mixed results amid tough drilling conditions.

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HOUSTON--Exxon Mobil Corp. said Friday it is abandoning its only exploration effort in the Santos Basin, epicenter of Brazil's offshore oil boom, an area where it has obtained mixed results amid tough drilling conditions.

The block is the Texas behemoth's sole exploration lease in Brazil, which forecasters say is destined to be one of the world's top petroleum producers by the end of the decade thanks to its vast trove of offshore oil and gas.

Exxon and its partners Hess Corp. and Petroleo Brasileiro SA "have agreed to relinquish" the BS-M-22 block in the Santos Basin, spokesman Pat McGinn said. The block is located in the thick of Brazil's burgeoning offshore-oil industry, near some of the largest oil discoveries in recent memory, and was leased under terms that are more favorable to foreign investors than those spelled out in recent regulation.

Exxon, which is celebrating 100 years in the South American country this year, "will continue to look for new business opportunities in Brazil," Mr. McGinn said. He said the local regulator, Agencia Nacional do Petroleo, or ANP, was notified in the first week of April.

The BS-M-22 block, located in the thick of Brazil's burgeoning offshore oil activity, proved a hard nut to crack for Exxon and its partners, underscoring the difficulty of developing Brazil's massive offshore reserves, most of which lie beneath deeply buried, thick layers of salt.

Two wells drilled there, Azulao-1 and Sabia-1, struck oil, but another well, dubbed Guarani, turned out to be dry. A typical deep-water well in the area can cost tens of millions of dollars, and Deutsche Bank AG once estimated that the Guarani well cost about $150 million.

Phil Weiss, an analyst with Argus Research, said the block "has been kind of disappointing so far." While the recognition that the block's resources are out of reach is an "incremental negative" for the companies, at least they won't keep engaging in risky, expensive exploration there, Mr. Weiss said.

Last October, Exxon and its partners had sought to bring in a new partner into the block to share the risk of drilling a new well there, offering a 25% stake. A brochure for the stake said that the prospect was estimated to contain up to 1.5 billion barrels of recoverable oil.

Block BM-S-22 is located about 350 kilometers south of Rio de Janeiro.

Exxon, the world's largest publicly traded oil company, has a 40% interest in the block. Hess has 40% and Petrobras 20%. Exxon is the block's operator.

Write to Angel Gonzalez at

Credit: By Angel Gonzalez

Subject: Petroleum industry; Oil reserves

Location: Texas Brazil

Company / organization: Name: Petroleos Brasileiro SA; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Deutsche Bank AG; NAICS: 522110, 551111; Name: Hess Corp; NAICS: 211111, 324110, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Apr 27, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1009899716

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1009899716?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Cleaning Up Oil Spilled From Louisiana Pipeline

Author: González, Ángel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Apr 2012: n/a.

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Abstract: None available.

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HOUSTON--Exxon Mobil Corp. said Monday it was cleaning up oil that spilled from a company pipeline in rural Louisiana.

An estimated 1,900 barrels of oil from the North Line crude pipeline were contained in the immediate vicinity of the spill, and there were no injuries reported, Exxon said. Also, air-quality monitoring detected "no danger to the public," although further checks are ongoing, the Irving, Texas, company said. The cleanup started Sunday, using vacuum trucks to collect the oil.

The cause of the spill was still being investigated, the company said. The pipeline was shut down after Exxon detected a loss of pressure on Saturday night.

The Louisiana spill comes nearly a year after an Exxon pipeline crossing the Yellowstone River in Montana broke, releasing crude into the waterway and resulting in a major cleanup effort.

"Exxon Mobil Pipeline Company regrets that this spill has occurred and we apologize for any disruption or inconvenience," said Karen Tyrone, an Exxon executive, in a press release. "Our crews will be on location until the cleanup has been completed. Fortunately the oil was contained in the immediate area which will enhance our recovery efforts."

The North Line originates in St. James, La., and transports oil to the northern part of the state.

Credit: By Ángel González

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Apr 30, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1010284763

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1010284763?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Mobil, Monsanto: Money Flow Leaders (XOM, MON)

Author: MARKET DATA STAFF

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 May 2012: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

Exxon Mobil Corp. topped the list in late trading for, which tracks stocks that fell in price but had the largest inflow of money. See the.

Monsanto Co. topped the list for, which tracks stocks that rose in price but had the largest outflow of money. See the.

Go to () for complete coverage.

Credit: By MARKET DATA STAFF

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: May 8, 2012

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1011472776

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1011472776?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Mobil, Raytheon: Money Flow Leaders (XOM, RTN)

Author: MARKET DATA STAFF

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 May 2012: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

Exxon Mobil Corp. topped the list in late trading for, which tracks stocks that fell in price but had the largest inflow of money. See the.

Raytheon Co. topped the list for, which tracks stocks that rose in price but had the largest outflow of money. See the.

Go to () for complete coverage.

Credit: By MARKET DATA STAFF

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: May 30, 2012

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1017695242

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1017695242?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Evaluating Gas Exports From Gulf, Canada

Author: Ordonez, Isabel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 May 2012: n/a.

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Abstract:

HOUSTON--Exxon Mobil Corp. is studying the possibility of exporting natural gas from the U.S. Gulf Coast and Canada as new shale drilling has unlocked enough natural-gas reserves to meet domestic demand for years to come and allow exports, Chief Executive Rex Tillerson said Wednesday.

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HOUSTON--Exxon Mobil Corp. is studying the possibility of exporting natural gas from the U.S. Gulf Coast and Canada as new shale drilling has unlocked enough natural-gas reserves to meet domestic demand for years to come and allow exports, Chief Executive Rex Tillerson said Wednesday.

Exports of natural gas will create jobs, increase tax revenues and help the U.S. trade balance, Mr. Tillerson said at the company's shareholder meeting in Dallas.

Exxon Mobil, the world's largest publicly traded oil company and the largest U.S. natural-gas producer, recently has said it was analyzing exports from domestically produced natural gas. Mr. Tillerson's remarks are the latest sign the company is following seriously the trend of smaller companies, such as Cheniere Energy Inc., which already have obtained necessary permits to export natural gas from the U.S.

Critics have said exports would raise the price of domestic natural gas and lead to increased use of hydraulic fracturing, a drilling method that environmentalists oppose because it pumps chemicals underground.

Separately, a shareholder proposal requiring greater disclosure by Exxon on the risk and impact of its hydraulic-fracturing practices was voted down by about 70.4% of the company's shareholders.

Last year, shareholder proposals to have Exxon prepare a report on the environmental impact of fracking was rejected by 71.75% of shareholders.

Influential proxy advisory firm ISS recommended Exxon's shareholders vote in favor of the fracking suggestion ahead of the meeting, saying shareholders would benefit from more-detailed information.

A proposal for an independent chairman at the company also failed to pass after receiving 35.2% of votes cast, up from 31.3% in 2010. Shareholder proposals require majority approval for passage. Mr. Tillerson is also chairman of the company.

A majority of shareholders approved Exxon's executive compensation.

Credit: By Isabel Ordonez

Subject: Petroleum industry; Natural gas; Shareholder voting; Exports; Hydraulic fracturing; Natural gas reserves

Location: Canada United States--US Dallas Texas

People: Tillerson, Rex W

Company / organization: Name: Cheniere Energy Inc; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: May 30, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1017695358

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Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Considers Chemical Plant Expansion Near Houston

Author: Gonzalez, Angel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 June 2012: n/a.

ProQuest document link

Abstract:

Companies such as Dow Chemical Co. and Royal Dutch Shell PLC have also recently undertaken petrochemical projects made profitable by low natural gas prices.

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HOUSTON--Exxon Mobil Corp. said Thursday that it is considering a multibillion-dollar expansion at its petrochemical facility near Houston.

The project would involve building a new ethane cracker and other facilities at Exxon Mobil's huge Baytown refining and petrochemical complex, and would enable the company to "capitalize on abundant supplies of American natural gas," a spokeswoman said in an email. Start-up would be scheduled for 2016.

Exxon has filed permit applications with the U.S. Environmental Protection Agency and the Texas Commission on Environmental Quality and expects the approval process to last about a year. The company said it would make a financial decision on whether to build the facilities after the federal and state governments approve it.

The planned facilities would process up to 1.5 million tons of chemicals per year and provide feedstock for a nearby polyethylene plant, the company said. Polyethelene is a premium chemical in high demand world-wide, it said.

"ExxonMobil Chemical estimates exports [of chemicals] could increase significantly as a result of the expansion," and the investment reflects Exxon's "continued confidence in the natural gas-driven revitalization of the U.S. chemical industry," the company said.

The move is the latest by a major energy and petrochemical company to profit from booming natural gas production in the U.S., which has rejuvenated the chemical manufacturing sector and fostered exports. Companies such as Dow Chemical Co. and Royal Dutch Shell PLC have also recently undertaken petrochemical projects made profitable by low natural gas prices.

The project would create 10,000 construction jobs and 350 permanent jobs would be added to Exxon's 6,500-strong Baytown workforce, the company said.

Write to Angel Gonzalez at

Credit: By Angel Gonzalez

Subject: Petroleum industry; Chemical industry; Natural gas prices

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Dow Chemical Co; NAICS: 325188, 325199, 325211; Name: Environmental Protection Agency--EPA; NAICS: 924110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Jun 1, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1017917725

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Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Sees Big Shale-Oil Potential in Siberia

Author: Hall, Simon

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 June 2012: n/a.

ProQuest document link

Abstract:

"Because of our global size and reach, we have businesses that are conducted in a wide range of currencies, and what we have found over the years is that we are mostly naturally hedged without having to do anything in the financial markets from a risk management standpoint.\n

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KUALA LUMPUR--Exxon Mobil Corp. is starting work with Russia's OAO Rosneft in assessing what could be massive reserves of shale oil in Western Siberia, the U.S. oil giant's chief executive, Rex Tillerson, said Tuesday.

"There is huge shale potential in shale rocks in West Siberia...we just don't know what the quality is," Mr. Tillerson said in an interview.

The exploration work will take years to establish if the reserves are commercially viable and are part of a strategic agreement Exxon reached earlier this year with state-controlled Rosneft, Russia's largest oil producer.

"Rosneft wished to participate in some resource development opportunities outside of Russia and we have invited them to farm into some areas in Canada and in Texas, in tight oil," Mr. Tillerson said, adding the agreement also called for Exxon to also help evaluate similar tight resources opportunities in Western Siberia.

Tight oil is mostly, but not exclusively, oil trapped in shale-rock formations that requires advanced fracturing technology to release.

"The shales are basically the source rocks for conventional production in the region and anywhere you have large existing conventional production you are going to find source rocks," he said.

Mr. Tillerson also said he didn't rule out Exxon joining the Russia Barents Sea Shtokman natural-gas project.

"On the right terms," he said, when asked if Exxon might want to farm into the project, possibly by taking part of the stakes held by Statoil ASA or Total SA in the OAO Gazprom-led project.

"At this point, we don't have any discussions ongoing with them," Mr. Tillerson said.

"We were engaged in the early days on discussions to participate in that project; we weren't selected," he said. "We had put forward our views on how that resource might be developed over the long term."

Texas-based Exxon is also exploring shale-gas opportunities in China, he said, where shale could potentially have as big an impact as it had in the US.

"We are in discussions with a couple of the Chinese national oil companies," Mr. Tillerson said, without identifying them. "We are doing some joint studies. We haven't taken a position yet, we are still talking about that and the terms around that."

China's shale gas would have a slower lead-up process than in the U.S. as "they don't have the existing infrastructure as in the U.S., built over a 50- or 60-year period that is needed to facilitate rapid commercialization, such as pipelines, gathering systems, distribution systems. It will be significant for China eventually," Mr. Tillerson said.

Separately, Mr. Tillerson said Exxon is "comfortable" with its exposure to currency movements caused by the debt crisis and economic situation in the European Union.

"We are comfortable about how we are managing our cash situation and our exposure to currencies in Europe," he said.

"Because of our global size and reach, we have businesses that are conducted in a wide range of currencies, and what we have found over the years is that we are mostly naturally hedged without having to do anything in the financial markets from a risk management standpoint."

Write to Simon Hall at

Credit: By Simon Hall

Subject: Petroleum industry; Natural gas; Oil sands

Location: Russia United States--US China

People: Tillerson, Rex W

Company / organization: Name: OAO Rosneft; NAICS: 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: OAO Gazprom; NAICS: 211111, 221210; Name: Total SA; NAICS: 211111, 324110, 447190

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Jun 5, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1018560880

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1018560880?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Invests in Australia Coal-Seam-Gas Venture

Author: Winning, David

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 June 2012: n/a.

ProQuest document link

Abstract:

More than 20 billion Australian dollars (US$19.5 billion) was spent in 2008 on coal-seam-gas deals in Australia's northeastern Queensland state alone by companies including Royal Dutch Shell PLC, ConocoPhillips and U.K.-based BG Group PLC. However, the coal-seam gas-industry has faced a backlash from some politicians and environmentalists in Australia due to leaks at wells in Queensland, some resources companies accessing private land without permission and worries regarding potential groundwater contamination and the safety of new drilling techniques.

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Full text:

MELBOURNE--Exxon Mobil Corp. is taking a 10% stake in a joint venture to explore for gas trapped in Australian coal seams, placing a bet on an unconventional fuel that has attracted billions of dollars of investment in Australia and become one of the world's hottest energy plays.

Exxon's Esso Ventures unit is teaming up with closely held Ignite Energy Resources Ltd. to explore and potentially develop reserves of methane gas occurring naturally in more than 16 billion metric tons of brown coal close to the surface in the Gippsland Basin of southeastern Victoria state, and more than 280 billion tons in deeper seams.

International energy companies like Exxon are tapping unconventional fuels such as coal-seam gas in Australia and shale gas in the U.S., after finding themselves increasingly locked out of easy-to-access oil and gas fields in countries like Russia, Saudi Arabia and Venezuela.

Australia's stable political system, transparent regulatory regime and proximity to fast-growing energy markets in Asia make the country appealing to investors.

More than 20 billion Australian dollars (US$19.5 billion) was spent in 2008 on coal-seam-gas deals in Australia's northeastern Queensland state alone by companies including Royal Dutch Shell PLC, ConocoPhillips and U.K.-based BG Group PLC.

However, the coal-seam gas-industry has faced a backlash from some politicians and environmentalists in Australia due to leaks at wells in Queensland, some resources companies accessing private land without permission and worries regarding potential groundwater contamination and the safety of new drilling techniques.

The Victorian state government this week committed to national rules covering unconventional-gas industries, designed to protect underground water sources used by farmers. The rules were formulated in February by the federal government and states with more mature industries, such as Queensland and New South Wales.

Texas-based Exxon is one of Australia's largest energy investors, owning a refinery in Victoria and several big conventional-oil-and-gas fields. These include a 25% stake in the A$43 billion Gorgon gas project, the country's largest gas resource.

Exxon's drilling for conventional oil and gas over nearly 50 years in the Bass Strait, a stretch of water between Victoria and the island state of Tasmania, enabled the company to build up a store of geological data that convinced it of the area's potential for coal-seam-gas output.

Roughly two-thirds of the Gippsland Basin is in the mainly shallow waters of the Bass Strait, with the remainder extending onshore in southeast Victoria.

"Over the next 12-18 months Exxon Mobil and Ignite Energy Resources will work together to evaluate and assess the natural gas potential in the deeper coal seams of the license and determine whether it can be commercially produced," the companies said in a joint written statement on Wednesday.

Ignite Energy Resources, which was advised by Citigroup Inc., will be the operator in the first phase of a program to explore an onshore area of about 3,800 square kilometers. The region is covered by Exploration License 4416.

Exxon's venture with Ignite Energy Resources is small compared with the billions of dollars spent by peers elsewhere in Australia. That is largely because coal-seam-gas exploration in Victoria is in its infancy, whereas Queensland's coal-seam-gas industry is well-established and accounts for 90% of the state's gas demand.

The biggest Queensland projects also involve the construction of liquefied-natural-gas terminals to feed Asia's gas demand.

Coal-seam-gas exploration might attract less opposition in Victoria compared with elsewhere in the country because the state lacks the resource wealth of Western Australia and Queensland, and few new conventional-gas discoveries are being made in its traditional supply hub of the Bass Strait.

Much of Victoria's power supply comes from burning dirty coal, so switching to gas has some environmental benefits.

Exploration in the Gippsland Basin is expected to involve minimal or no fracking--a controversial drilling technique that shatters rock to stimulate the flow of gas--while water contained in the coal seams has low levels of salinity.

Sydney-based Ignite Energy Resources also has interests in biofuels and mineral sands, and an agreement to supply TRUenergy, a unit of CLP Holdings Ltd., with upgraded energy products such as synthetic crude oil for use in the Yallourn power plant in Victoria. CLP is listed in Hong Kong.

Write to David Winning at

Credit: By David Winning

Subject: Petroleum industry; Oil sands; Pipelines; Contamination; Coal

Location: United States--US Asia Queensland Australia Western Australia Australia

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Jun 6, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1018588291

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1018588291?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Corporate News: Exxon to Invest in Coal-Seam Gas Venture in Australia

Author: Winning, David

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]07 June 2012: B.6.

ProQuest document link

Abstract:

More than 20 billion Australian dollars (US$19.5 billion) was spent in 2008 on coal-seam-gas deals in Australia's northeastern Queensland state alone by companies including Royal Dutch Shell PLC, ConocoPhillips and U.K.-based BG Group PLC. However, the coal-seam-gas industry has faced a backlash from some politicians and environmentalists in Australia due to well leaks in Queensland; resources companies accessing private land without permission; and worries regarding the safety of new drilling techniques.

Links: 360 Link to Full Text

Full text:

MELBOURNE-- Exxon Mobil Corp. is taking a 10% stake in a joint venture to explore for gas trapped in Australian coal seams, placing a bet on an unconventional fuel that has attracted billions of dollars of investment in Australia and become one of the world's hottest energy plays.

Exxon's Esso Ventures unit is teaming up with closely held Ignite Energy Resources Ltd. of Australia to explore and potentially develop reserves of methane gas occurring naturally in more than 16 billion metric tons of brown coal close to the surface in the Gippsland Basin of southeastern Victoria state, and more than 280 billion tons in deeper seams.

International energy companies like Exxon are tapping unconventional fuels such as coal-seam gas in Australia and shale gas in the U.S., after finding themselves increasingly locked out of easy-to-access oil and gas fields in countries including Russia, Saudi Arabia and Venezuela.

Australia's stable political system, transparent regulatory regime and proximity to fast-growing energy markets in Asia make the country appealing to investors.

More than 20 billion Australian dollars (US$19.5 billion) was spent in 2008 on coal-seam-gas deals in Australia's northeastern Queensland state alone by companies including Royal Dutch Shell PLC, ConocoPhillips and U.K.-based BG Group PLC.

However, the coal-seam-gas industry has faced a backlash from some politicians and environmentalists in Australia due to well leaks in Queensland; resources companies accessing private land without permission; and worries regarding the safety of new drilling techniques.

The Victoria state government this week committed to national rules covering unconventional-gas industries and designed to protect underground water sources used by farmers. The rules were formulated in February by Australia's federal government and states with more mature industries, such as Queensland and New South Wales.

Texas-based Exxon is one of Australia's largest energy investors, owning a refinery in Victoria and several big conventional-oil-and-gas fields. The company's interests include a 25% stake in the A$43 billion Gorgon gas project, the country's largest gas resource.

Exxon's drilling for conventional oil and gas over nearly 50 years in the Bass Strait, a stretch of water between Victoria and the island state of Tasmania, enabled the company to build up a store of geological data that convinced it of the area's potential for coal-seam-gas production.

Roughly two-thirds of the Gippsland Basin is in the mainly shallow waters of the Bass Strait, with the remainder extending onshore in southeast Victoria.

"Over the next 12-18 months Exxon Mobil and Ignite Energy Resources will work together to evaluate and assess the natural gas potential in the deeper coal seams of the license and determine whether it can be commercially produced," the companies said in a joint statement on Wednesday.

Ignite Energy Resources, which was advised by Citigroup Inc., will be the operator in the first phase of a program to explore an onshore area of1,460 square miles.

Exxon's venture with Ignite Energy Resources is small compared with the billions of dollars spent by peers elsewhere in Australia.

That is largely because coal-seam-gas exploration in Victoria is in its infancy, whereas Queensland's coal-seam-gas industry is well established and accounts for 90% of the state's gas demand.

Credit: By David Winning

Subject: Petroleum industry; Oil sands; Coal; Gas industry; Equity stake; Joint ventures; Coalbed methane

Location: United States--US Queensland Australia Australia

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Esso Ventures Pty Ltd; NAICS: 211111; Name: Ignite Energy Resources Ltd; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 1300: International trade & foreign investment; 8510: Petroleum industry; 9179: Asia & the Pacific; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.6

Publication year: 2012

Publication date: Jun 7, 2012

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1018853622

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1018853622?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Expands Rosneft Alliance to Siberian Shale

Author: Ordonez, Isabel; Stilwell, Victoria

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 June 2012: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. said Friday it agreed to develop so-called tight oil reserves in Western Siberia with Russian partner OAO Rosneft, in the Texas energy giant's latest effort to replicate the U.S. shale boom globally.

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Full text:

Exxon Mobil Corp. said Friday it agreed to develop so-called tight oil reserves in Western Siberia with Russian partner OAO Rosneft, in the Texas energy giant's latest effort to replicate the U.S. shale boom globally.

Exxon and state-controlled Rosneft will use technology that the U.S. oil company already employs in unconventional oil and gas formations in North America. The agreement is the latest chapter in a strategic deal between the two oil companies that includes offshore exploration of massive energy reserves in Russia's Arctic Sea and the Black Sea.

Exxon and Rosneft said they expect to soon approve geological studies and drilling for selected Rosneft license blocks in Western Siberia, including the Bazhenov and Achimov reservoirs. Exxon, the world's largest publicly traded oil company by market value, will finance the studies and exploratory drilling, which is expected to begin in 2013.

The Bazhenov Shale is believed to hold many times more oil than the prolific Bakken Shale in North Dakota, and it has the potential to be one of the world's largest sources of shale oil, Oswald Clint, an analyst at Bernstein Research, wrote in a recent note to clients.

The venture comes at a time when Exxon has been increasing its foothold on unconventional oil and gas development, not only in North America, but all over the globe. The company, which is exploring for shale oil and gas in Germany and Argentina, recently revealed it will also develop tight oil in Colombia and that it was evaluating the potential of shale oil and gas in China. Exxon has said a key component of its $25 billion acquisition of shale producer XTO Energy in 2010 was transferring the know-how that allowed the company to unlock vast new reserves of natural gas in the U.S. through hydraulic fracturing, or fracking.

The agreement is also an indicator of a re-emerging symbiosis between international oil companies and Russia, which needs to replace its declining oil production with an ever-larger amount of hard-to-exploit crude if it is to remain one of the world's energy powers. In recent months Eni SpA and Statoil ASA have also signed deals with Russian companies to develop Arctic fields.

One of the main challenges of developing Western Siberia's unconventional oil resources will be contracting enough rigs to perform the intense drilling required in shale exploration, Bernstein's Mr. Clint said. Rigs there would be able to drill half the annual number of wells as rigs in the U.S., due to the Western Siberian weather, he said.

Exxon and Rosneft also agreed to establish a joint Arctic Research Center for Offshore Developments. The center will provide services to support all stages of oil and gas development on the Arctic shelf, including the design of ice-resistant offshore vessels, structures and Arctic pipelines.

The work to start tapping Western Siberia's tight oil reserves was mentioned by Exxon Chief Executive Rex Tillerson in an interview earlier this month. At the time, Mr. Tillerson said "there is huge shale potential in shale rocks in West Siberia...we just don't know what the quality is."

Simon Hall contributed to this article.

Credit: By Isabel Ordonez And Victoria Stilwell

Subject: Oil reserves; Petroleum industry; Energy policy; Hydraulic fracturing; Oil shale

Location: Arctic region Russia United States--US Texas Black Sea North America

People: Tillerson, Rex W

Company / organization: Name: OAO Rosneft; NAICS: 324110; Name: Eni SpA; NAICS: 211111, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Jun 15, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1020571213

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1020571213?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Drops Shale Plans in Poland

Author: Ordonez, Isabel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 June 2012: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. said Monday it has dropped further shale exploration in Poland after two wells failed to yield commercial quantities of natural gas, a hit for the country's efforts to reduce its dependence on imports from Russia.

Links: 360 Link to Full Text

Full text:

Exxon Mobil Corp. said Monday it has dropped further shale exploration in Poland after two wells failed to yield commercial quantities of natural gas, a hit for the country's efforts to reduce its dependence on imports from Russia.

"We have completed exploration operations in Poland," said company spokesman Patrick McGinn. "There have been no demonstrated sustained commercial hydrocarbon flow rates in our two wells in the Lublin and Podlasie basins."

Oil majors such as Exxon, ConocoPhillips and Marathon Oil Corp. flocked to Poland in recent years after the country put in place incentives designed to lure international oil companies. The energy companies are seeking to replicate there the shale boom that revolutionized North American natural-gas markets in the last decade.

The bid by Poland, Germany and other European countries to produce more natural gas domestically was part of an effort to reduce their dependence on Russia's vast natural-gas resources.

But Exxon's exit is likely to raise questions about the viability of the effort, at least in Poland. Exxon, which acquired rights to explore for shale in Poland in late 2008, announced early last year that it was looking for buyers for stakes in four shale-gas concessions there.

Analysts have said that Poland and other Eastern European countries faced a big challenge for developing unconventional energy resources, owing to a lack of infrastructure and manpower. Unlike the U.S. and Canada, Poland doesn't have a well-developed pipeline system to move gas from the fields where it is produced, nor the strong drilling-services industry needed to tap shale reservoirs.

Credit: By Isabel Ordonez

Subject: Petroleum industry; Natural gas

Location: Germany Poland Russia

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Marathon Oil Corp; NAICS: 211111, 213112, 324110, 486110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Jun 18, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1020888859

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1020888859?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Corporate News: Exxon Ends Drilling For Poland Shale Gas

Author: Ordonez, Isabel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]19 June 2012: B.2.

ProQuest document link

Abstract:

The future of shale development in Poland received an earlier setback in March after Poland's national geological institute estimated the country's recoverable reserves of shale gas were as much as 10 times lower than earlier estimates by the U.S. Energy Information Administration.

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Exxon Mobil Corp. will stop exploring for natural gas in shale formations in Poland, dealing a blow to hopes the country could replicate the shale-drilling boom that revolutionized gas production in North America.

Major companies including Exxon, Chevron Corp., ConocoPhillips and Marathon Oil Corp. flocked to Poland in recent years after the country started offering incentives to lure international firms. Poland is hoping to reduce its long-term dependence on gas imports from Russia.

But Exxon said Monday it is pulling the plug on additional exploration in Poland, after two early gas wells failed to yield commercial quantities. The company said last year that it was looking to sell stakes in four shale-gas concessions there. It acquired rights to explore for shale gas in Poland in 2008.

"We have completed exploration operations in Poland," spokesman Patrick McGinn said. "There have been no demonstrated sustained commercial hydrocarbon flow rates in our two wells in the Lublin and Podlasie basins."

Exxon wasn't the first company to report disappointing early well results in Poland. Oil-and-gas explorer BNK Petroleum Inc. said in October that results of a well drilled in the Cambrian and Ordovician shale, in north Poland, were inconclusive and delayed testing in another area in the country.

Leslie Palti-Guzman, an analyst at consultancy Eurasia, said Exxon's exit from Poland is "clearly not a positive signal" for shale exploration there. However, she said it is too early to extrapolate Exxon's results to other areas in Poland where rival companies are drilling wells.

Chevron said it "remains committed" to its current exploration program in the country. Its acreage is in southeast Poland, while Exxon's properties were in the country's center.

ConocoPhillips said it is "still in the early stages of exploration in Poland" and that it has "no plans to exit at this time." Its acreage is in northern Poland.

Marathon said it "continues to explore and evaluate the potential of our holdings in Poland." The company has drilled two exploration wells, begun work on a third and plans to drill more in the country by the end of the year.

The future of shale development in Poland received an earlier setback in March after Poland's national geological institute estimated the country's recoverable reserves of shale gas were as much as 10 times lower than earlier estimates by the U.S. Energy Information Administration.

The EIA estimates the U.S. has 2,214 trillion cubic feet of technically recoverable natural-gas resources. Poland's geological institute's most optimistic estimate of shale-gas deposits is 67.1 trillion cubic feet.

Poland's government said in March that oil companies needed to drill more test wells to determine the country's resources with more precision.

Credit: By Isabel Ordonez

Subject: Petroleum industry; Oil shale; Natural gas exploration

Location: Russia North America Poland

Company / organization: Name: Chevron Corp; NAICS: 211111, 324110; Name: ConocoPhillips Co; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 8510: Petroleum industry; 9175: Western Europe

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.2

Publication year: 2012

Publication date: Jun 19, 2012

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1020946003

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1020946003?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon: 'Losing Our Shirts' on Natural Gas

Author: DiColo, Jerry A; Fowler, Tom

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 June 2012: n/a.

ProQuest document link

Abstract:

Exxon is following the trend of smaller companies, such as Cheniere Energy Inc., that have already pursued the necessary permits to export gas from the U.S. On Wednesday, he said there are enough U.S. oil and gas reserves to provide the domestic economy with fuel through the rest of the century if public policy encourages the industry.

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NEW YORK---Even energy titan Exxon Mobil Corp. is showing signs of strain from low natural-gas prices.

On Wednesday Exxon Chief Executive Rex Tillerson broke from the previous company line that it wasn't being hurt by natural gas prices, admitting that the Irving, Texas-based firm is among those hurting from the price slump.

"We are all losing our shirts today." Mr. Tillerson said in a talk before the Council on Foreign Relations in New York. "We're making no money. It's all in the red."

His comments mark a departure from remarks made earlier this year on how lower natural-gas prices hadn't yet hurt the company because of its operational efficiency and low production costs.

The comments from Exxon's chief come amid a massive U.S. gas supply glut that has kept prices depressed and helped to reduce energy costs for many consumers and businesses. In recent months, demand for natural gas from utilities has surged as firms turn to gas instead of more expensive coal to supply electricity. Just as Mr. Tillerson was speaking, however, natural-gas prices rallied to a 5 1/2-month high, with the July contract settling at $2.774 per million British thermal units, the fifth straight day of gains.

Exxon's $26 billion acquisition of XTO Energy in 2010 made the company the largest producer of natural gas in the U.S.; among U.S. integrated oil companies, it is the one that has bet the most on the value of unconventional natural-gas production.

Mr. Tillerson said last month during Exxon's shareholders' meeting that he had "no regrets" on the timing of the XTO purchase, which occurred just before the most recent slump in U.S. gas prices. At the company's annual analysts' meeting in March, Exxon said production costs varied greatly from project to project, but it wasn't losing money on its natural-gas production.

But the executive acknowledged Wednesday that Exxon and most of the industry had "grossly underestimated" the speed of the U.S. natural-gas boom, as the technology to unlock gas trapped in shale-rock formations, known as hydraulic fracturing, advanced faster than expected.

"It shows even Exxon can feel the pain from low natural-gas prices," said Fadel Gheit, an analyst with Oppenheimer & Co.

In April the company said the average price at which it sold its natural-gas production in the first quarter was $2.74 per million British thermal units, down 20% from the same period a year earlier. That price reflects a combination of spot prices and long-term contracted sales, but analysts expect that figure to drop.

Market prices have averaged about $2.20 per million British thermal units in the second quarter, down from $2.70 in the first quarter, said Guy Baber, an analyst with Simmons & Co. International. Even during the worst days of 2011, prices averaged more than $3.50.

"The message from Tillerson is candid and maybe a bit different than in the past, but I think this is largely because natural-gas prices are so much weaker now than they have been," Mr. Baber said.

That doesn't mean Exxon will necessarily stop drilling for natural gas, however.

The company has started to shift its drilling toward sites with greater potential for oil and natural-gas liquids, but it has said repeatedly it believes natural gas will grow significantly in the coming decades. The company is designing drilling programs on most of its U.S. gas fields to better assess the long-term prospects of the assets, not capture short-term production and revenue gains.

With first-quarter earnings of $9.45 billion and cash reserves of $19.1 billion, Exxon has the balance sheet and financial strength to be patient and keep drilling gas wells, unlike many smaller oil companies, Mr. Baber said.

In his talk, Mr. Tillerson said energy companies won't be able to continue drilling unless prices rise.

More recently, Exxon has been studying the possibility of exporting natural gas from the U.S. Gulf Coast and from Canada as shale drilling has unlocked natural-gas reserves to allow exports.

Exxon is following the trend of smaller companies, such as Cheniere Energy Inc., that have already pursued the necessary permits to export gas from the U.S.

On Wednesday, he said there are enough U.S. oil and gas reserves to provide the domestic economy with fuel through the rest of the century if public policy encourages the industry.

"To say the U.S. is energy poor is simply not accurate," Mr. Tillerson said. He added U.S. energy security is "a matter of policy choices" and could be achieved "within the visible future."

North America has become an important area for the development of new energy resources in recent years, with surging production in both Canada and the U.S. Mr. Tillerson said he was "hopeful" that reforms in Mexico would make possible further collaboration between Exxon and Mexico's state-owned oil company, Petroleos Mexicanos, or Pemex.

Write to Jerry A. DiColo at and Tom Fowler at

Credit: By Jerry A. DiColo And Tom Fowler

Subject: Petroleum industry; International relations; Energy industry

Location: United States--US New York

People: Tillerson, Rex W

Company / organization: Name: XTO Energy Inc; NAICS: 211111; Name: Council on Foreign Relations; NAICS: 813910, 541720; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Jun 27, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1022297887

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1022297887?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Starts Angola Offshore Oil Project

Author: González, Ángel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 July 2012: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

HOUSTON--Exxon Mobil Corp. said Monday it started production at the Kizomba Satellites Phase 1 oil project in offshore Angola, expected to eventually produce 100,000 barrels of oil day from two large deep-water fields.

It is one of several major oil-production start-ups planned for this year, all of which are critical to maintaining a steady stream of cash at a time in which Exxon's massive North American natural-gas operations are seeing their profitability squeezed by low prices. Oil, which on Monday traded around $85.41 per barrel, remains much more profitable.

The company's other major start-ups set for this year are the Kearl oil-sands project in Canada and several Nigerian satellite fields attached to existing production facilities.

Analysts with Simmons & Co. say the Kearl development will give Exxon, the 100% owner, 110,000 barrels of oil production a day; the Nigerian fields will add 70,000 barrels of oil a day. Exxon has a 40% stake in those fields.

The Angola project was completed ahead of schedule, Neil Duffin, head of ExxonMobil Development Company, said in a statement.

The initial phase of the Kizomba Satellites project ties 18 new wells to production facilities already in use tapping other oil fields in the area, called Block 15. It is expected to collect a total of about 250 million barrels of crude from the Mavacola and Clochas fields, located about 95 miles off the Angolan shore.

Exxon owns 40% of the block. Its partners are BP PLC, Eni SpA and Statoil ASA.

Credit: By Ángel González

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Jul 9, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1024132887

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Last updated: 2017-11-19

Database: The Wall Street Journal

One-Time Gain Boosts Exxon's Net Profit

Author: González, Ángel; Stynes, Tess

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 July 2012: n/a.

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Abstract:

ConocoPhillips on Wednesday reported its second-quarter earnings fell 33% during its first quarterly reporting period as a pure-play exploration and production company, as its performance was hit by lower oil and natural-gas prices.

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Exxon Mobil Corp.'s second-quarter earnings rose 49% on a net gain related to divestments and tax-related items, though exploration and production profits fell on lower energy prices and production.

The world's largest publicly traded oil company reported earnings of $15.9 billion, or $3.41 a share, up from $10.68 billion, or $2.18 a share, a year earlier. The figure, a record for the company, includes $7.5 billion in gains from the sale of Japanese refining and chemical assets and tax-related items.

Revenue increased 1.5% to $127.36 billion.

Analysts polled by Thomson Reuters projected earnings of $1.95 a share on revenue of $115.08 billion. Analysts with Simmons & Co. said that after taking out the asset sales and tax bump, earnings of $1.80 per share were disappointing.

"Relative to our expectations, production volumes were disappointing and natural gas realizations lagged market indicators," the Simmons analysts said in a research note.

Big oil companies have been expected to report lower second-quarter earnings this week, as a global economic slowdown triggered a sharp drop in prices toward the end of the reporting period. And although the one-time items pushed Exxon's earnings higher, its earnings from the sale of oil and gas, down 2.4%, clearly followed that trend.

A decline in oil and gas production, down 5.6%, contributed to the drop, and so did a weak environment for natural-gas prices in the U.S. Irving, Texas-based Exxon, the largest natural-gas producer in the U.S. after its acquisition in 2010 of XTO Energy Inc., saw its U.S. oil and gas profits drop by more than half to $678 million from $1.4 billion in the same period last year. The drop was somewhat offset by an increase in international oil and gas earnings, which rose to $7.68 billion from $7.1 billion last year.

Downstream earnings saw a $5.3 billion bump from last year, entirely due to the restructuring of Exxon's Japan operations. Higher margins, which analysts expected to contribute significantly due to the drop in oil prices, were offset by operating expenses, foreign currency moves and one-time tax items.

Chemical earnings may have accounted for some of the earnings disappointment, said Raymond James analyst Pavel Molchanov. Disregarding asset-sales gains, the segment, which has been pushed up recently by low natural-gas prices in North America, brought in some $820 million, below Raymond James's expectations of $1.2 billion, Mr. Molchanov said. "If it were not for the chemicals issue, I think earnings would have been in line," he said.

The company said weaker margins, unfavorable foreign-currency effects and other items had an impact on chemical earnings.

Exxon, which has been criticized for its large bets on natural gas in the midst of a market glut for the commodity, reduced its capital spending in the U.S. significantly from last year. The company invested $2.6 billion in its U.S. upstream unit, down from $4 billion in the same period last year. In contrast, its international spending grew to $5.7 billion from $5.3 billion.

During the quarter, Exxon Mobil repurchased 60 million common shares at a cost of $5 billion to reduce shares outstanding.

ConocoPhillips Wednesday reported its second-quarter earnings fell 33% during its first quarterly reporting period as a pure-play exploration-and-production company. Its performance was hit by lower oil and natural-gas prices. Chevron Corp., the second largest U.S. oil company after Exxon, is set to report its second-quarter results Friday.

Meanwhile, Royal Dutch Shell PLC on Thursday posted worse-than-expected second-quarter earnings, as higher oil and gas output failed to compensate for weaker energy prices and slack consumer demand.

Brent-crude prices averaged 7% less than in the corresponding period last year, but it was lower U.S. natural-gas prices that particularly dented profit at Europe's largest energy firm.

London-based Shell blamed the poor global macroeconomic environment for the near 13% fall in adjusted profit. Net profit, meanwhile, fell 53.1% to $4.06 billion. The Anglo-Dutch energy company said its profit on the basis of clean current cost of supplies, a keenly watched figure that strips out gains or losses from inventories and other nonoperating items, was $5.72 billion in the three months ended June 30, compared with $6.55 billion in the second quarter of 2011. This was below expectations of $6.46 billion in a Dow Jones Newswires poll of eight analysts.

Revenue was $119.89 billion, compared with $124.56 billion in the second quarter of 2011.

Alexis Flynn contributed to this article.

Write to Tess Stynes at

Credit: By Ángel González And Tess Stynes

Subject: Petroleum industry; Stock prices; Financial performance; Corporate profits; Divestments

Location: United States--US Japan

Company / organization: Name: Chevron Corp; NAICS: 211111, 324110; Name: Thomson Reuters; NAICS: 511110, 511140; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Jul 26, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1027869899

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Last updated: 2017-11-19

Database: The Wall Street Journal

For Exxon, Natural Gas Becomes a Costly Burden

Author: Fowler, Tom; Gold, Russell

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 July 2012: n/a.

ProQuest document link

Abstract:

The oil and natural-gas production boom sweeping the U.S. may be good for the country's economic health, but it hasn't recently been much help to energy giant Exxon Mobil Corp. Lackluster second-quarter financial results from Exxon's U.S. oil and natural-gas production cast a shadow on the record global profit the company reported Thursday.

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The oil and natural-gas production boom sweeping the U.S. may be good for the country's economic health, but it hasn't recently been much help to energy giant Exxon Mobil Corp.

Lackluster second-quarter financial results from Exxon's U.S. oil and natural-gas production cast a shadow on the record global profit the company reported Thursday.

With its 2010 purchase of natural-gas driller XTO Energy, Exxon became the biggest gas producer in the country--shortly before natural-gas prices began heading toward 10-year lows. Exxon, based in Irving, Texas, said Thursday it believes its $31 billion purchase was a strong strategic move and is optimistic that natural-gas prices will rebound.

But analysts continue to question the deal as it weighed on the company's U.S. earnings and appears set to do the same for more quarters to come. Exxon spent about 29% of its capital expenditures on U.S. drilling operations but generated only 4% of its profit in this segment.

Exxon reported second-quarter net income of $15.9 billion, up from $10.68 billion a year earlier and a quarterly record for the company. It appears to be a record for any U.S. company under current accounting rules, according to Howard Silverblatt, a senior analyst with Standard & Poor's.

About $7.5 billion of that profit, however, came from asset sales--including the disposal of some of Exxon's Japanese refining business--and tax-related losses. Without those items, profit totaled $8.4 billion, or $1.80 per share, below most analysts' estimates.

Revenue rose 1.5% to $127.36 billion.

Exxon's U.S. exploration-and-production business reported profit down 53% to $678 million because of lower natural-gas and oil prices. Its U.S. refining business reported an improvement thanks in part to those same lower prices, with refining profit up 13.6% to $834 million. But chemical profit fell 20% to $494 million.

Exxon's XTO acquisition was meant to bolster its reserves and give it exposure to the growing business of extracting natural gas from shale formations in the U.S. Natural-gas prices have fallen due to excess domestic production, dipping below $2 per million British thermal units earlier this year before rebounding to just above $3.

The company said earlier this year it had made the purchase knowing that gas prices would decline, but Exxon CEO Rex Tillerson told analysts this spring he hadn't expected the persistence of the U.S. economic slump, which dented demand for natural gas.

Analysts have raised concerns about whether Exxon would have to write down the value of its natural-gas reserves given persistently low prices, as Encana Corp. of Canada did Wednesday to the tune of $1.7 billion.

David Rosenthal, Exxon's vice president of investor relations, said Thursday the company erred on the conservative side when valuing its reserves and didn't anticipate the need to revise them.

Other major oil and gas companies have been hurt by lower oil and gas prices, but few of the big diversified companies appear to be feeling the impact as much as Exxon, which reduced gas as a percentage of its overall energy production to under 47% in the second quarter, down from over 51% in the first quarter.

Chevron Corp., which reports earnings Friday, has just 31% of its U.S. production from natural gas, while BP PLC, which reports Tuesday, has 42%. About 45% of Royal Dutch Shell PLC 's U.S. production is natural gas; the company reported Thursday that its net profit fell 53% to $4.06 billion because of poor global economic conditions and lower oil and gas prices.

Exxon said most of the drilling rigs it had under contract in the U.S. during the second quarter were drilling for oil or liquids used in chemical manufacturing, rather than natural gas. The company emphasized that it was ramping up oil projects in the U.S., including in North Dakota's Bakken Shale, where it is now producing about 32,000 barrels of oil equivalent per day, double the output from a year ago.

The company continues to invest heavily in the U.S. despite declining production revenues. It spent $2.66 billion in the second quarter on oil-and-gas exploration in the U.S., down from $4.08 billion in the same quarter last year when Exxon expanded its stake in the Marcellus Shale in the eastern U.S., but up 23% from the third quarter of 2011. The company started drilling two exploration wells in the deepwater Gulf of Mexico.

Companies need to continue to invest in production, even when prices are weak, said Fadel Gheit, an analyst with Oppenheimer & Co.

"Most large companies are facing an uphill battle, maintaining, let alone growing production," Mr. Gheit said. "Replacing reserves at a competitive cost is the most critical issue facing these companies."

Exxon stock closed up 1.3% at $86.52 on the record global profit, lifting its market capitalization to $404.6 billion.

Alexis Flynn and Daniel Gilbert contributed to this story.

Write to Tom Fowler at and Russell Gold at

Credit: By Tom Fowler And Russell Gold

Subject: Oil reserves; Petroleum industry; Natural gas reserves; Oil sands

People: Tillerson, Rex W

Company / organization: Name: Standard & Poors Corp; NAICS: 511120, 523999, 541519, 561450; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Jul 26, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1027936821

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Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

For Exxon, Natural Gas Becomes a Costly Burden

Author: Fowler, Tom; Gold, Russell

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]27 July 2012: B.1.

ProQuest document link

Abstract:

The oil and natural-gas production boom sweeping the U.S. may be good for the country's economic health, but it hasn't recently been much help to energy giant Exxon Mobil Corp. Lackluster second-quarter financial results from Exxon's U.S. oil and natural-gas production cast a shadow on the record global profit the company reported Thursday.

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The oil and natural-gas production boom sweeping the U.S. may be good for the country's economic health, but it hasn't recently been much help to energy giant Exxon Mobil Corp.

Lackluster second-quarter financial results from Exxon's U.S. oil and natural-gas production cast a shadow on the record global profit the company reported Thursday.

With its 2010 purchase of natural-gas driller XTO Energy, Exxon became the biggest gas producer in the country -- shortly before natural-gas prices began heading toward 10-year lows. Exxon, based in Irving, Texas, said it believes its $31 billion purchase was a strong strategic move and is optimistic that natural-gas prices will rebound.

But analysts continue to question the deal as it weighed on the company's U.S. earnings and appears set to do the same for more quarters to come. Exxon spent about 29% of its capital expenditures on U.S. drilling operations but generated only 4% of its profit in this segment.

Exxon reported second-quarter net income of $15.9 billion, up from $10.68 billion a year earlier and a quarterly record for the company. It appears to be a record for any U.S. company under current accounting rules, according to Howard Silverblatt, a Standard & Poor's analyst.

About $7.5 billion of that profit, however, came from asset sales -- including the disposal of some of Exxon's Japanese refining business -- and tax-related losses. Without those items, profit totaled $8.4 billion, or $1.80 per share, below most analysts' estimates.

Revenue rose 1.5% to $127.36 billion.

Exxon's U.S. exploration-and-production business reported profit down 53% to $678 million because of lower natural-gas and oil prices.

Exxon's XTO acquisition was meant to bolster its reserves and give it exposure to the growing business of extracting natural gas from shale formations in the U.S. Natural-gas prices have fallen due to excess domestic production, dipping below $2 per million British thermal units earlier this year before rebounding to just above $3.

The company said earlier this year it had made the purchase knowing that gas prices would decline, but Exxon CEO Rex Tillerson told analysts this spring he hadn't expected the persistence of the U.S. economic slump, which dented demand for natural gas.

Analysts have raised concerns about whether Exxon would have to write down the value of its natural-gas reserves given persistently low prices, as Encana Corp. of Canada did Wednesday to the tune of $1.7 billion.

David Rosenthal, Exxon's vice president of investor relations, said Thursday the company erred on the conservative side when valuing its reserves and didn't anticipate the need to revise them.

Other major oil and gas companies have been hurt by lower prices, but few of the big diversified companies appear to be feeling the impact as much as Exxon, which reduced gas as a percentage of its overall energy production to under 47% in the second quarter, down from over 51% in the first quarter.

Chevron Corp., which reports earnings Friday, has just 31% of its U.S. production from natural gas, while BP PLC, which reports Tuesday, has 42%. About 45% of Royal Dutch Shell PLC 's U.S. production is natural gas; the company reported Thursday that its net profit fell 53% to $4.06 billion because of poor global economic conditions and lower oil and gas prices.

Exxon emphasized that it was ramping up oil projects in the U.S., including in North Dakota's Bakken Shale, where it is now producing about 32,000 barrels of oil equivalent per day, double the output from a year ago.

The company continues to invest heavily in the U.S. despite declining production revenues. It spent $2.66 billion in the second quarter on oil-and-gas exploration in the U.S., down from $4.08 billion in the same quarter last year when Exxon expanded its stake in the Marcellus Shale, but up 23% from the third quarter of 2011.

Companies need to continue to invest in production, even when prices are weak, said Fadel Gheit, an analyst with Oppenheimer & Co.

"Most large companies are facing an uphill battle, maintaining, let alone growing production," Mr. Gheit said. "Replacing reserves at a competitive cost is the most critical issue facing these companies."

Exxon stock closed up 1.3% at $86.52 on the record global profit, lifting its market capitalization to $404.6 billion.

---

Alexis Flynn and Daniel Gilbert contributed to this story.

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Credit: By Tom Fowler and Russell Gold

Subject: Oil reserves; Petroleum industry; Natural gas reserves; Financial performance; Corporate profits; Natural gas

Location: United States--US

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 9190: United States; 8510: Petroleum industry; 3400: Investment analysis & personal finance

Publication title: Wall Street Jo urnal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2012

Publication date: Jul 27, 2012

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1028004195

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Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Who Really Gets Rich Off High Gas Prices? Exxon made seven cents per gallon in 2011. Federal, state and local governments siphoned off 50 cents in taxes.

Author: Johnson, Drew

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Aug 2012: n/a.

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Abstract:

Crude oil costs make up about 76% of the cost of gasoline, according to U.S. Energy Information Administration (EIA). [...]2.66 of a $3.50 gallon of gasoline is set before the oil is even refined.

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With the average price of gas in America hovering around $3.50 per gallon for regular unleaded, it costs more than $50 to fill a typical car's 15-gallon tank this summer. Why does gas cost so much?

You may blame high gas prices on rich oil company executives or greedy gas station owners. The truth is that governments rake in a larger profit at the pump than anyone--and with gas taxes on the rise in many parts of the country, there's no relief in sight.

The price of a gallon of gas is based on the combination of four costs: that of crude oil, of refining gas, of distribution and marketing, and of taxes.

Crude oil costs make up about 76% of the cost of gasoline, according to U.S. Energy Information Administration (EIA). Thus $2.66 of a $3.50 gallon of gasoline is set before the oil is even refined. Global markets, reacting to supply and demand, determine the cost of crude oil. Just like any commodity, from gold to corn, a shortage in supply or an increase in demand leads to a rise in prices.

Refining oil is the next step in the process--and the next expense for drivers. Gasoline is extracted from crude oil and additives, including lubricants and detergents to reduce engine deposits, are added. As of January 2012, the EIA found that refining was responsible for 6% of the cost of gasoline.

Distribution and marketing--the part of the process most apparent to consumers--constitutes another 6% of gas prices. That portion of the cost includes the shipping and transportation of the gasoline, a markup to cover retailers' expenses, and any advertising created to appeal to customers.

The remaining 12%--or almost 50 cents per gallon today--goes directly to federal, state and local governments in an array of sales and excise taxes. The federal gas tax is 18.4 cents on every gallon of gasoline sold in America. State gas-tax rates vary from a low of eight cents per gallon in Alaska to a jarring 49 cents per gallon in New York. Other states where it's steep to fill up include California and Connecticut--each with 48.6-cent-per-gallon gas taxes--and Hawaii, at 47.1 cents per gallon.

Some local governments have gotten in on the act, too. In California, local sales and excise taxes on gasoline average 3.1%, according to the Los Angeles Times. That works out to about 12 cents in local taxes for each gallon of gas, based on the state's current average of $3.80 per gallon.

Skokie, Ill., a suburb north of Chicago, levies a gas tax of three cents per gallon. You'll pay an extra nickel per gallon at gas stations in Eugene, Ore. And the next time you're gambling in Las Vegas, you'll need plenty of cash left over to cover Clark County's 10 cent local tax on a gallon of gas. In Florida, Brevard County (home to the Kennedy Space Center) expects to siphon more than $15 million from motorists this year, according to the newspaper Florida Today.

Put this all together, and government makes far more from gas sales than all of the oil companies put together. Exxon, for example, made only seven cents per gallon of gasoline in 2011. That's a drop in the bucket compared to the nearly 50 cents per gallon that federal, state and local governments rake in on an average gallon of gas pumped in the U.S.

Most people have to drive--whether to work, to the grocery store, to pick up kids from school or for dozens of other reasons. For some families struggling to make ends meet, paying 50 cents per gallon in taxes may be the difference between driving to work and putting dinner on the table.

So the next time you begin to blame oil companies, speculators or service stations for high gas prices, remember that no one get richer off of gasoline than government.

Mr. Johnson is a senior fellow at the Taxpayers Protection Alliance.

Credit: By Drew Johnson

Subject: Gasoline prices; Gasoline taxes; Costs; Tax rates; Price increases

Location: California United States--US

Company / organization: Name: Los Angeles Times; NAICS: 511110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Aug 2, 2012

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1030788320

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Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Qatar Petroleum-Exxon Venture Requests Permit to Export U.S. Natural Gas

Author: González, Ángel; Lefebvre, Ben

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Aug 2012: n/a.

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Abstract: None available.

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HOUSTON--Golden Pass Products LLC, a joint venture between Exxon Mobil Corp. and Qatar Petroleum, is asking federal authorities for permission to export large quantities of liquefied natural gas made in the U.S. from an existing terminal near the Texas-Louisiana border, an executive said Friday.

If permission is granted, Exxon, the biggest natural-gas producer in the country, and its partner would spend $10 billion converting a recently finished terminal built near Port Arthur, Texas, to import natural gas into a facility capable of exporting 15.6 million tons of LNG per year, or approximately two billion cubic feet per day. The U.S. produces about 72 billion cubic feet of natural gas a day.

If permission is granted, Exxon, the biggest natural-gas producer in the country, and its partner would spend $10 billion converting a recently finished terminal built to import natural gas into a facility capable of exporting 15.6 million tons of LNG per year, or approximately two billion cubic feet per day. The U.S. produces about 72 billion cubic feet of natural gas a day.

The move acknowledges the dramatic shift in energy markets produced by the development of techniques to produce natural gas from shale formations across the U.S. After years of fretting about natural gas scarcity and spending billions constructing import terminals to bring the fuel from places as far as Qatar and West Africa, energy companies now seek to turn the U.S. into a major energy exporter.

"The market changed from what we originally envisioned," said Bill Davis, Project Executive for Golden Pass Products. "Something changed along the way--it was the discovery of vastly significant gas resources."

The joint venture's application is for export to countries with which the U.S. has a free-trade treaty; it says it will submit an additional application for countries that haven't signed free-trade agreements with the U.S. soon. Mr. Davis said it could take several years to get regulatory approval and up to five years to build the liquefaction facilities at the terminal.

A rival company, Cheniere Energy Inc., already has authorization to ship LNG world-wide from a terminal near Exxon's Golden Pass Facility. But Exxon's application puts its heft behind the controversial drive to export U.S. natural gas. Proponents say that exports will boost the U.S. economy and create jobs, while critics charge that exporting will raise prices for domestic consumers and lead to greater use of the drilling method known as hydraulic fracturing, which some environmentalists fear could cause pollution.

U.S. natural gas producers, straining under a collapse in domestic prices, have hoped for the chance to sell natural gas to overseas markets where prices can be much higher. As new drilling technology helped unlock increasing amounts of natural gas, prices plummeted to $1.90 per million British thermal units in April from nearly $14 per million British thermal units in July 2008.

Natural gas futures for September delivery closed Friday at $2.719 per million British thermal units, down 0.5 cent, or 0.2%, as traders worried that excess supply would continue despite a drop in the number of rigs drilling for natural gas. The U.S. produces about 72 billion cubic feet a day of natural gas.

Customers from the U.K., Korea, India and Spain have already contracted supply from Cheniere. The company, which recently gave the order to start building the facility, expects to start deliveries in 2015.

In addition to Qatar Petroleum and Exxon, the Golden Pass LNG Terminal and a pipeline connecting it to the natural gas transmission network are also owned in part by ConocoPhillips.

Write to Ángel González at and Ben Lefebvre at

Corrections & Amplifications Golden Pass Products is asking federal authorities for permission to export liquefied natural gas from a terminal near Port Arthur, Texas. An earlier version of this article incorrectly said the terminal was in Louisiana.

Credit: By Ángel González And Ben Lefebvre

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Aug 17, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1033786416

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Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Corporate News: Exxon Seeks to Export Gas

Author: Gonzalez, Angel; Lefebvre, Ben

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]18 Aug 2012: B.3.

ProQuest document link

Abstract:

Corrections & Amplifications A joint venture between Exxon Mobil Corp. and Qatar Petroleum called Golden Pass Products is asking federal authorities for permission to export liquefied natural gas from a terminal near Port Arthur, Texas.

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Corrections & Amplifications

A joint venture between Exxon Mobil Corp. and Qatar Petroleum called Golden Pass Products is asking federal authorities for permission to export liquefied natural gas from a terminal near Port Arthur, Texas. A Corporate News article about the venture in some editions Saturday incorrectly said the terminal is in Louisiana.

(WSJ Aug. 23, 2012)

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HOUSTON -- A joint venture between Exxon Mobil Corp. and Qatar Petroleum is asking federal authorities for permission to export large quantities of liquefied natural gas made in the U.S. from an existing terminal in Louisiana, an executive said Friday.

If permission is granted, Exxon, the biggest natural-gas producer in the country, and its partner would spend $10 billion converting a recently finished terminal built to import natural gas into a facility capable of exporting 15.6 million tons of LNG per year, or approximately two billion cubic feet per day. The U.S. produces about 72 billion cubic feet of natural gas a day.

The move acknowledges the dramatic shift in energy markets produced by the development of techniques to produce natural gas from shale formations across the U.S.

After years of fretting about natural gas scarcity and spending billions constructing import terminals to bring the fuel from places as far as Qatar and West Africa, energy companies now seek to turn the U.S. into a major energy exporter.

"The market changed from what we originally envisioned," said Bill Davis, project executive for the joint venture, Golden Pass Products LLC. "Something changed along the way -- it was the discovery of vastly significant gas resources."

The joint venture's application is for export to countries with which the U.S. has a free-trade treaty; it says it will submit an additional application for countries that haven't signed free-trade agreements with the U.S. soon.

Mr. Davis said it could take several years to get regulatory approval and up to five years to build the liquefaction facilities at the terminal.

A rival company, Cheniere Energy Inc., already has authorization to ship LNG world-wide from a terminal near Exxon's Golden Pass Facility. But Exxon's application puts its heft behind the controversial drive to export U.S. natural gas.

Proponents say that exports will boost the U.S. economy and create jobs, while critics charge that exporting will raise prices for domestic consumers and lead to greater use of the drilling method known as hydraulic fracturing, which some environmentalists fear could cause pollution.

U.S. natural gas producers, straining under a collapse in domestic prices, have hoped for the chance to sell natural gas to overseas markets where prices can be much higher. As new drilling technology helped unlock increasing amounts of natural gas, prices plummeted to $1.90 per million British thermal units in April from nearly $14 per million British thermal units in July 2008.

Natural gas futures for September delivery closed Friday at $2.719 per million British thermal units, down 0.5 cent, or 0.2%, as traders worried that excess supply would continue despite a drop in the number of rigs drilling for natural gas. The U.S. produces about 72 billion cubic feet a day of natural gas.

Customers from the U.K., Korea, India and Spain have already contracted supply from Cheniere. The company, which recently gave the order to start building the facility, expects to start deliveries in 2015.

Credit: By Angel Gonzalez and Ben Lefebvre

Subject: Natural gas; Petroleum industry; Energy policy; International trade; Regulatory approval

Location: Texas United States--US Louisiana

Company / organization: Name: Cheniere Energy Inc; NAICS: 211111; Name: Qatar Petroleum; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2012

Publication date: Aug 18, 2012

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1033807367

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1033807367?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon to Buy Denbury's Bakken Acreage for $1.6 Billion

Author: González, Ángel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Sep 2012: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. agreed to acquire Denbury Resources Inc.'s Bakken assets in North Dakota and Montana for $1.6 billion in cash, a move that increases its production acreage in the prolific oil shale region by nearly 50%.

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HOUSTON--In a bid for more U.S. oil production, Exxon Mobil Corp. agreed to buy Denbury Resources Inc.'s assets in the Bakken Shale for $1.6 billion in cash and interests in two oil fields.

The deal gives Exxon 50% more acreage in the Bakken Shale, an emerging oil field that this year helped make North Dakota the second-largest oil-producing state in the country, after Texas.

It also gives Exxon, the country's largest natural-gas producer, the opportunity to place more chips on unconventional oil; the company has been criticized for betting too much on natural gas, which is much less profitable than oil amid the natural-gas market glut unleashed by hydraulic fracturing.

"It is no surprise" that Exxon, the world's largest publicly traded oil company, continues to "attempt to scale up its presence in tight oil and liquids rich unconventional plays," said analysts with Simmons & Co. in a research note. The analysts added that after the purchase the Bakken will become Irving, Texas-based Exxon's largest unconventional-oil-rich play after Canada's oil sands.

The agreement comes amid increased interest by international oil companies, which for years have struggled to grow, in so-called tight oil, which can be freed from shale rock formations with hydraulic fracturing, or "fracking," technology. Production in these tight oil fields can be boosted quickly when enough capital is invested--a perfect fit for big oil companies with deep pockets and a mandate to extract more oil. Last week Royal Dutch Shell PLC bought unconventional oil assets from Chesapeake Energy Corp. for $1.94 billion.

Exxon is buying 196,000 net acres of land in North Dakota and Montana, the entirety of Denbury's assets in the Bakken, and is giving Denbury in return its interests in the Hartzog Draw field in Wyoming and the Webster field in Texas, plus the cash.

The assets Exxon is acquiring from Denbury are expected to produce 15,000 barrels of oil equivalent per day in the second half of 2012. The net production from the interests Exxon is transferring to Denbury amounts to 3,600 barrels of oil equivalent per day.

Denbury said it also agreed in principle to either purchase an interest in the carbon-dioxide reserves in Exxon Mobil's LaBarge Field in southwestern Wyoming or to purchase incremental carbon dioxide from that field. Carbon dioxide is often used by oil companies to increase the amount of oil they can get from aging fields, a technique known as enhanced oil recovery.

The amount of cash Denbury receives will be reduced with the purchase of an interest in carbon-dioxide reserves. The deal is expected to close in the fourth quarter. For Denbury, the Bakken was "not a core focus," said Jason Wangler, an analyst with Wunderlich Securities, Inc. Now it can focus on its specialty, which is enhanced oil recovery, Mr. Wangler added.

Denbury plans to use the cash proceeds to purchase additional oil fields in the Gulf Coast or Rocky Mountain regions, for capital expenditures and to repay debt.

Denbury also plans to resume its stock-repurchase program, under which about $305 million of the $500 million authorized in October 2011 remains.

Melodie Warner contributed to this article.

Write to Melodie Warner at

Credit: By Ángel González

Subject: Petroleum industry; Natural gas utilities; Carbon dioxide; Oil exploration; Statistical data

Location: Montana Texas North Dakota

Company / organization: Name: Denbury Resources Inc; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Sep 20, 2012

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1041224014

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1041224014?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Corporate News: Exxon Will Buy Shale Assets for $1.6 Billion

Author: Gonzalez, Angel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]21 Sep 2012: B.4.

ProQuest document link

Abstract:

In a bid for more U.S. oil production, Exxon Mobil Corp. agreed to buy Denbury Resources Inc.'s assets in the Bakken Shale for $1.6 billion in cash and interests in two oil fields.

Links: 360 Link to Full Text

Full text:  

HOUSTON -- In a bid for more U.S. oil production, Exxon Mobil Corp. agreed to buy Denbury Resources Inc.'s assets in the Bakken Shale for $1.6 billion in cash and interests in two oil fields.

The deal gives Exxon 50% more acreage in the Bakken Shale, an emerging oil field that this year helped make North Dakota the second-largest oil-producing state in the country, after Texas.

It also gives Exxon, the country's largest natural-gas producer, the opportunity to place more chips on unconventional oil; the company has been criticized for betting too much on natural gas, which is much less profitable than oil amid the natural-gas market glut unleashed by hydraulic fracturing.

"It is no surprise" that Exxon, the world's largest publicly traded oil company, continues to "attempt to scale up its presence in tight oil and liquids rich unconventional plays," said analysts with Simmons & Co. in a research note. The analysts added that after the purchase the Bakken will become Irving, Texas-based Exxon's largest unconventional-oil-rich play after Canada's oil sands.

The agreement comes amid increased interest by international oil companies, which for years have struggled to grow, in so-called tight oil, which can be freed from shale rock formations with hydraulic fracturing, or "fracking," technology. Production in these tight oil fields can be boosted quickly when enough capital is invested -- a perfect fit for big oil companies with deep pockets and a mandate to extract more oil. Last week Royal Dutch Shell PLC bought unconventional oil assets from Chesapeake Energy Corp. for $1.94 billion.

Exxon is buying 196,000 net acres of land in North Dakota and Montana, the entirety of Denbury's assets in the Bakken, and is giving Denbury in return its interests in the Hartzog Draw field in Wyoming and the Webster field in Texas, plus the cash.

The assets Exxon is acquiring from Denbury are expected to produce 15,000 barrels of oil equivalent per day in the second half of 2012. The net production from the interests Exxon is transferring to Denbury amounts to 3,600 barrels of oil equivalent per day.

Denbury said it also agreed in principle to either purchase an interest in the carbon-dioxide reserves in Exxon Mobil's LaBarge Field in southwestern Wyoming or to purchase incremental carbon dioxide from that field. Carbon dioxide is often used by oil companies to increase the amount of oil they can get from aging fields, a technique known as enhanced oil recovery.

The amount of cash Denbury receives will be reduced with the purchase of an interest in carbon-dioxide reserves. The deal is expected to close in the fourth quarter. For Denbury, the Bakken was "not a core focus," said Jason Wangler, an analyst with Wunderlich Securities Inc. Now it can focus on its specialty, which is enhanced oil recovery, Mr. Wangler added.

Denbury plans to use the cash proceeds to purchase additional oil fields in the Gulf Coast or Rocky Mountain regions, for capital expenditures and to repay debt.

Denbury also plans to resume its stock-repurchase program, under which about $305 million of the $500 million authorized in October 2011 remains.

---

Melodie Warner contributed to this article.

Subscribe to WSJ:

Credit: By Angel Gonzalez

Subject: Oil fields; Hydraulic fracturing; Petroleum industry; Oil reserves; Petroleum production; Capital expenditures; Natural gas; Asset acquisitions

Location: United States--US Texas North Dakota

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Chesapeake Energy Corp; NAICS: 211111; Name: Denbury Resources Inc; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 2330: Acquisitions & mergers; 8510: Petroleum industry; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.4

Publication year: 2012

Publication date: Sep 21, 2012

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1041315031

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1041315031?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Overheard: Exxon's Bakken Tell

Author: Anonymous

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]21 Sep 2012: C.10.

ProQuest document link

Abstract:

The Bakken is perhaps the hottest area in the North American energy business right now. Since 2006, oil output from the Bakken in North Dakota has increased 100-fold, from a mere 6,000 barrels a day to more than 600,000 barrels a day, making it a poster boy for hydraulic fracturing.

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Full text:  

[Financial Analysis and Commentary]

Is Exxon Mobil's "Perspectives" blog the latest leading indicator for mergers and acquisitions? Thursday morning, the biggest of Big Oil announced a deal to swap some old oil fields and pay $1.6 billion to Denbury Resources for the exploration-and-production company's assets in the Bakken shale, much of which is under North Dakota.

The Bakken is perhaps the hottest area in the North American energy business right now. Since 2006, oil output from the Bakken in North Dakota has increased 100-fold, from a mere 6,000 barrels a day to more than 600,000 barrels a day, making it a poster boy for hydraulic fracturing.

How do we know this? Well, helpfully, Ken Cohen, Exxon's vice president of public and government relations, published a blog-post on Perspectives entitled "A hundredfold increase in oil production" on Wednesday -- the day before the deal was announced. Advance marketing for the acquisition? Perhaps. Either way, anyone with an interest in Exxon's next move could do worse than read its website.

---

overheard@wsj.com

Subscribe to WSJ:

Subject: Oil fields; Petroleum production; Petroleum industry

Location: North Dakota

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: C.10

Publication year: 2012

Publication date: Sep 21, 2012

column: Heard on the Street

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1041316067

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1041316067?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Buys Canadian Gas Driller for $2.63 Billion

Author: McKinnon, Judy; Fowler, Tom

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Oct 2012: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. said Wednesday it agreed to buy Canadian oil and natural-gas producer Celtic Exploration Ltd. for 2.59 billion Canadian dollars (US$2.63 billion) in a deal that expands the oil giant's North American shale-gas portfolio at a time when gas prices--and asset values--are suffering from a continent-wide glut.

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Full text:  

Exxon Mobil Corp. said Wednesday it agreed to buy Canadian oil and natural-gas producer Celtic Exploration Ltd. for 2.59 billion Canadian dollars (US$2.63 billion) in a deal that expands the oil giant's North American shale-gas portfolio at a time when gas prices--and asset values--are suffering from a continent-wide glut.

The companies said Exxon's Canadian unit is offering C$24.50 a share for Calgary-based Celtic's outstanding shares, plus half a share of a new company that will be created to hold several assets not included in the purchase. The cash portion of the deal represents a 35% premium to Celtic's closing price of C$18.12 in Toronto Tuesday. Including debt considerations, the two companies said the deal was worth C$3.1 billion.

The deal is Exxon's largest since the 2010 purchase of natural-gas-focused XTO Energy for about $26 billion, a transaction that many analysts say was a poorly timed effort to get in on the shale-gas boom. Overproduction of natural gas sent U.S. prices to a decade low earlier this year.

Celtic's production and proved reserves are heavily focused on natural gas versus liquids, note analysts with Raymond James Financial, with about 76% of its reserves in gas. But they are just a tiny fraction of Exxon's estimated daily production of 4,368 million barrels of oil equivalent for 2012, and year-end 2011 proved reserves of 24.9 billion barrels of oil equivalent.

Exxon continues to take a long-term perspective on natural gas, expecting it to be a fuel of choice globally in decades to come.

"This latest deal, similar to XTO in some respects--albeit on a much smaller scale--can be thought of as Exxon's attempt to dollar-cost average what, in retrospect, was clearly not an optimally timed deal," Raymond James said in its research note.

It is also the latest in a string of big deals by foreign buyers in the Canadian oil patch. Ottawa faces a Friday deadline to decide whether to green-light a $5.8 billion proposal by Malaysian state oil company Petroliam Nasional Bhd., or Petronas, to buy Progress Energy Resources Corp., another Canadian gas producer.

In July, Beijing-controlled Cnooc Ltd. said it agreed to buy Nexen Inc., one of Canada's biggest oil companies, for $15.1 billion. Amid government reviews of those two deals, Ottawa has promised to clarify its criteria for big, foreign, state-owned acquirers. Exxon's deal isn't likely to attract the same scrutiny since it isn't a state-owned buyer. It is also making its acquisition of Celtic through a Canadian affiliate, which has a long history working in Canada.

"This acquisition will add significant liquids-rich resources to our existing North American unconventional portfolio," Andrew Barry, president of Exxon Mobil Canada, said in a statement.

The value of a company's reserves can change over time based on how it develops them. Like many smaller firms, Celtic acquired a large position in a number of shale fields and used cash flow from production to keep growing. More selective drilling and exploration over time--a strategy Exxon has said previously it is pursuing in its acquisition of XTO--can lead to larger reserves.

"Exxon has the sufficient size and scope that we don't have to produce everything available to keep cash flow going. We can step back and develop long-term plans to produce when it's most optimal," said Alan Jeffers, an Exxon Mobil spokesman.

Canadian natural-gas production may be destined for overseas export through liquefied natural-gas projects that are proposed for Canada's Pacific Coast. Mr. Jeffers said Exxon is still in the early stages of evaluating taking part in such projects.

Around midday in Toronto, Celtic shares were up C$8.14, or 45%, to C$26.26. A number of other small Canadian gas producers saw their stock price rise Wednesday after the Exxon deal.

Exxon's proposed deal includes Celtic's current production of 72 million cubic feet a day of natural gas and 4,000 barrels a day of crude, condensate and natural-gas liquids. Celtic is focused on exploration, development and production of crude oil and natural-gas resources primarily in west central Alberta.

The two companies said they plan to spin off several other assets into a new company. Representatives for Celtic weren't immediately available to comment.

The deal, which includes a C$90 million break-up fee payable under certain circumstances by Celtic, is subject to Celtic shareholder approval and approval by Canadian regulators.

Angel Gonzalez contributed to this article.

Write to Judy McKinnon at

Credit: By Judy McKinnon And Tom Fowler

Subject: Acquisitions & mergers; Oil reserves; Natural gas; Petroleum industry

Location: United States--US Canada

Company / organization: Name: Nexen Inc; NAICS: 211111; Name: Progress Energy Resources Corp; NAICS: 221122; Name: Celtic Exploration Ltd; NAICS: 211111; Name: Raymond James Financial Inc; NAICS: 523120, 523930; Name: Petronas; NAICS: 211111; Name: CNOOC Ltd; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Oct 17, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1112372790

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1112372790?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Mobil to Buy Celtic Exploration

Author: McKinnon, Judy

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Oct 2012: n/a.

ProQuest document link

Abstract:

Exxon Mobil's buy, which includes current production of 72 million cubic feet a day of natural gas and 4,000 barrels a day of crude, condensate and natural gas liquids, comes at a time when foreign companies are looking to bolster their presence in resource-rich Canada.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. agreed Wednesday to buy Canadian oil and gas producer Celtic Exploration Ltd. in a deal worth about 3.1 billion Canadian dollars ($3.14 billion), including debt.

Calgary, Alberta-based Celtic said Exxon Mobil's Canadian unit is offering C$24.50 a share for its outstanding shares, plus 0.5 of a share of a new company, representing a 35% premium to Celtic's closing price of C$18.12 in Toronto Tuesday.

Based on Celtic's outstanding 105.7 million shares, the offer has a cash value of about C$2.59 billion.

"This acquisition will add significant liquids-rich resources to our existing North American unconventional portfolio," Andrew Barry, president of Exxon Mobil Canada, said in a statement.

Exxon Mobil's buy, which includes current production of 72 million cubic feet a day of natural gas and 4,000 barrels a day of crude, condensate and natural gas liquids, comes at a time when foreign companies are looking to bolster their presence in resource-rich Canada.

The Celtic assets being acquired include 545,000 net acres in the liquids-rich Montney shale, 104,000 net acres in the Duvernay shale and additional acreage in other areas of Alberta. Celtic is focused on exploration, development and production of crude oil and natural gas resources primarily in west central Alberta.

The deal, which includes a C$90 million break-up fee payable under certain circumstances by Celtic, is subject to Celtic shareholder approval and approval by Canadian regulators.

Write to Judy McKinnon at

Credit: By Judy McKinnon

Subject: Natural gas; Petroleum industry; Acquisitions & mergers

Location: Calgary Alberta Canada

Company / organization: Name: Celtic Exploration Ltd; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Oct 17, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1112372971

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1112372971?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Buys Canadian Gas Driller for $2.63 Billion

Author: McKinnon, Judy; Fowler, Tom

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Oct 2012: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. said Wednesday it agreed to buy Canadian oil and natural-gas producer Celtic Exploration Ltd. for 2.59 billion Canadian dollars (US$2.63 billion) in a deal that expands the oil giant's North American shale-gas portfolio at a time when gas prices--and asset values--are suffering from a continent-wide glut.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. said Wednesday it agreed to buy Canadian oil and natural-gas producer Celtic Exploration Ltd. for 2.59 billion Canadian dollars (US$2.63 billion) in a deal that expands the oil giant's North American shale-gas portfolio at a time when gas prices--and asset values--are suffering from a continent-wide glut.

The companies said Exxon's Canadian unit is offering C$24.50 a share for Calgary-based Celtic's outstanding shares, plus half a share of a new company that will be created to hold several assets not included in the purchase. The cash portion of the deal represents a 35% premium to Celtic's closing price of C$18.12 in Toronto Tuesday. Including debt considerations, the two companies said the deal was worth C$3.1 billion.

The deal is Exxon's largest since the 2010 purchase of natural-gas-focused XTO Energy for about $26 billion, a transaction that many analysts say was a poorly timed effort to get in on the shale-gas boom. Overproduction of natural gas sent U.S. prices to a decade low earlier this year.

Celtic's production and proved reserves are heavily focused on natural gas versus liquids, note analysts with Raymond James Financial, with about 76% of its reserves in gas. But they are just a tiny fraction of Exxon's estimated daily production of 4.368 million barrels of oil equivalent for 2012, and year-end 2011 proved reserves of 24.9 billion barrels of oil equivalent.

Exxon continues to take a long-term perspective on natural gas, expecting it to be a fuel of choice globally in decades to come.

"This latest deal, similar to XTO in some respects--albeit on a much smaller scale--can be thought of as Exxon's attempt to dollar-cost average what, in retrospect, was clearly not an optimally timed deal," Raymond James said in its research note.

It is also the latest in a string of big deals by foreign buyers in the Canadian oil patch. Ottawa faces a Friday deadline to decide whether to green-light a $5.8 billion proposal by Malaysian state oil company Petroliam Nasional Bhd., or Petronas, to buy Progress Energy Resources Corp., another Canadian gas producer.

In July, Beijing-controlled Cnooc Ltd. said it agreed to buy Nexen Inc., one of Canada's biggest oil companies, for $15.1 billion. Amid government reviews of those two deals, Ottawa has promised to clarify its criteria for big, foreign, state-owned acquirers. Exxon's deal isn't likely to attract the same scrutiny since it isn't a state-owned buyer. It is also making its acquisition of Celtic through a Canadian affiliate, which has a long history working in Canada.

"This acquisition will add significant liquids-rich resources to our existing North American unconventional portfolio," Andrew Barry, president of Exxon Mobil Canada, said in a statement.

The value of a company's reserves can change over time based on how it develops them. Like many smaller firms, Celtic acquired a large position in a number of shale fields and used cash flow from production to keep growing. More selective drilling and exploration over time--a strategy Exxon has said previously it is pursuing in its acquisition of XTO--can lead to larger reserves.

"Exxon has the sufficient size and scope that we don't have to produce everything available to keep cash flow going. We can step back and develop long-term plans to produce when it's most optimal," said Alan Jeffers, an Exxon Mobil spokesman.

Canadian natural-gas production may be destined for overseas export through liquefied natural-gas projects that are proposed for Canada's Pacific Coast. Mr. Jeffers said Exxon is still in the early stages of evaluating taking part in such projects.

Around midday in Toronto, Celtic shares were up C$8.14, or 45%, to C$26.26. A number of other small Canadian gas producers saw their stock price rise Wednesday after the Exxon deal.

Exxon's proposed deal includes Celtic's current production of 72 million cubic feet a day of natural gas and 4,000 barrels a day of crude, condensate and natural-gas liquids. Celtic is focused on exploration, development and production of crude oil and natural-gas resources primarily in west central Alberta.

The two companies said they plan to spin off several other assets into a new company. Representatives for Celtic weren't immediately available to comment.

The deal, which includes a C$90 million break-up fee payable under certain circumstances by Celtic, is subject to Celtic shareholder approval and approval by Canadian regulators.

Angel Gonzalez contributed to this article.

Write to Judy McKinnon at

Credit: By Judy McKinnon And Tom Fowler

Subject: Acquisitions & mergers; Oil reserves; Natural gas; Petroleum industry

Location: United States--US Canada

Company / organization: Name: Nexen Inc; NAICS: 211111; Name: Progress Energy Resources Corp; NAICS: 221122; Name: Celtic Exploration Ltd; NAICS: 211111; Name: Raymond James Financial Inc; NAICS: 523120, 523930; Name: Petronas; NAICS: 211111; Name: CNOOC Ltd; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Oct 18, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1112565043

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1112565043?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Corporate News: Exxon Acquires Canadian Gas Driller

Author: McKinnon, Judy; Fowler, Tom

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]18 Oct 2012: B.2.

ProQuest document link

Abstract:

Exxon Mobil Corp. said Wednesday it agreed to buy Canadian oil and natural-gas producer Celtic Exploration Ltd. for 2.59 billion Canadian dollars (US$2.63 billion) in a deal that expands the oil giant's North American shale-gas portfolio at a time when gas prices -- and asset values -- are suffering from a continent-wide glut.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. said Wednesday it agreed to buy Canadian oil and natural-gas producer Celtic Exploration Ltd. for 2.59 billion Canadian dollars (US$2.63 billion) in a deal that expands the oil giant's North American shale-gas portfolio at a time when gas prices -- and asset values -- are suffering from a continent-wide glut.

The companies said Exxon's Canadian unit is offering C$24.50 a share for Calgary-based Celtic's shares outstanding, plus half a share of a new company that will be created to hold several assets not included in the purchase. The cash portion of the deal represents a 35% premium to Celtic's closing price of C$18.12 in Toronto Tuesday. Including debt considerations, the two companies said the deal was worth C$3.1 billion.

The deal is Exxon's largest since the 2010 purchase of natural-gas-focused XTO Energy for about $26 billion, a transaction that many analysts say was a poorly timed effort to get in on the shale-gas boom. Overproduction of natural gas sent U.S. prices to a decade low earlier this year.

Celtic's production and proved reserves are heavily focused on natural gas versus liquids, note analysts with Raymond James Financial, with about 76% of its reserves in gas. But they are just a tiny fraction of Exxon's estimated daily production of 4.368 million barrels of oil equivalent for 2012, and year-end 2011 proved reserves of 24.9 billion barrels of oil equivalent.

Exxon continues to take a long-term perspective on natural gas, expecting it to be a fuel of choice globally in decades to come.

"This latest deal, similar to XTO in some respects -- albeit on a much smaller scale -- can be thought of as Exxon's attempt to dollar-cost average what, in retrospect, was clearly not an optimally timed deal," Raymond James said in its research note.

It is also the latest in a string of big deals by foreign buyers in the Canadian oil patch.

In July, Beijing-controlled Cnooc Ltd. said it agreed to buy Nexen Inc., one of Canada's biggest oil companies, for $15.1 billion.

Exxon's deal isn't likely to attract the same scrutiny since it isn't a state-owned buyer. It is also making its acquisition of Celtic through a Canadian affiliate, which has a long history working in Canada.

---

Angel Gonzalez contributed to this article.

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Credit: By Judy McKinnon and Tom Fowler

Subject: Acquisitions & mergers

Location: United States--US Canada

Company / organization: Name: Celtic Exploration Ltd; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 9180: International; 8510: Petroleum industry; 2330: Acquisitions & mergers

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.2

Publication year: 2012

Publication date: Oct 18, 2012

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1112644436

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Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Nears Sale of South Iraq Stake

Author: Hassan Hafidh

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Oct 2012: n/a.

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Anglo-Dutch oil-and-gas company Royal Dutch Shell PLC has a 15% stake in the West Qurna-1 development contract, while the remaining 25% is owned by the Iraqi state oil company.

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Exxon Mobil Corp. is in talks to sell its stake in a contract to develop a multibillion-dollar oil project in southern Iraq while gearing up to start a controversial drilling effort in the Kurdistan region, people familiar with the matter said on Thursday.

The U.S. energy giant's move to exit southern Iraq and push forward with its plans in Kurdistan, in northern Iraq, suggests the central government's efforts to keep it operating solely in southern Iraq are likely to fail. This comes as talks between the Kurdistan regional government, or KRG, and the federal government in Baghdad aimed at resolving differences over oil rights appear to have stalled again after a brief period of progress.

"Exxon has informed top Iraqi government officials that it is intending to leave," a person familiar with the Iraqi oil ministry said.

Exxon Mobil is in talks with international oil companies about selling its 60% stake in a service agreement to develop the massive West Qurna-1 oil field in southern Iraq, one person familiar with the Iraqi Oil Ministryand another person familiar with Exxon Mobil's operations in Kurdistan said on Thursday. Exxon's 2010 deal with the Iraqi central government to improve production in the West Qurna-1 field was never expected to be lucrative under the best of circumstances, the person said.

The government had agreed to pay Exxon Mobil and its partners $1.90 for each additional barrel of oil they pumped after refurbishing the already producing field. The fees would barely be enough to cover the companies' costs. Other deals in southern Iraq between Baghdad and foreign oil companies had similar terms.

Anglo-Dutch oil-and-gas company Royal Dutch Shell PLC has a 15% stake in the West Qurna-1 development contract, while the remaining 25% is owned by the Iraqi state oil company.

Shell declined to comment when asked whether it is interested to buy Exxon Mobil's stake in West Qurna-1 field.

Meanwhile, Exxon Mobil s planning to start exploratory drilling in Kurdistan as soon as early 2013, people with knowledge of Exxon Mobil and the KRG said, after delaying such plans for months in order to resolve a dispute with Baghdad over deals signed with the KRG.

Exxon Mobil declined to comment about the talks on exiting southern Iraq and plans to begin drilling in Kurdistan.

The U.S. company has already ordered the purchase of oil-well casing heads and is negotiating a contract with an oil-services firm to start drilling in Kurdistan, said another person familiar with Exxon Mobil's operations in the region. "They have opened an office in Erbil," the KRG capital, he said.

"We know they have been active," an executive at a Western oil company in Kurdistan said about Exxon Mobil.

Two of the people familiar with the situation said Exxon Mobil would start drilling operations near Mosul in one of the disputed areas that have inflamed tensions between Baghdad and Erbil.

In November last year, Exxon Mobil provoked protest from Baghdad when it became the first major international oil company to sign petroleum contracts with the KRG despite Baghdad's threats to expel it from a contract in southern Iraq. Exxon Mobil signed a deal to develop six blocks with the KRG, which is locked in a feud with the Arab-dominated central government over land and oil rights.

Three of the blocks are in areas disputed by Erbil and Baghdad.

Earlier this year, U.S. oil giant Chevron Corp., France's Total SA and the oil-producing arm of Russia's OAO Gazprom followed Exxon Mobil's lead by striking their own deals in Kurdistan.

The Iraqi central government has excluded companies that signed deals with the KRG from participating in auctions for future oil-exploration rights in southern Iraq.

The central government's reaction suggests Kurdish oil developments still face huge political hurdles. Leaders in Baghdad and Erbil disagree on the appropriate distribution of power between the regional and central governments. The Kurds have signed at least 30 oil deals despite the central government's objections, and the oil ministry in Baghdad has considered those contracts null and void.

This week, a high-level committee failed to convene a planned meeting aimed at resolving the oil dispute between Baghdad and Erbil, casting doubt on recent progress with the dispute. Iraq's federal oil minister Abdul Kareem Luaiby and Kurdish oil minister Ashti Hawrami, both members of the committee, met in Baghdad three weeks ago to discuss a draft hydrocarbon law that would regulate the oil industry and to try to agree on a version that would be acceptable to both sides. The country's parliament hasn't been able to advance toward enacting the legislation for years, as Baghdad and Erbil have been at loggerheads over oil rights.

Last month, the central government decided to pay international oil companies working in Kurdistan some 1 trillion Iraqi dinars [$850 million] and said the KRG should increase exports to 200,000 barrels a day from this month until the end of the year via Iraq's federally controlled pipelines, but that settled only part of the dispute between them.

"So far there is no agreement," said Firhad al-Atroshi, a Kurdish parliamentarian, and a member of the high-level committee set up to try to reach an agreement on the draft oil law.

The hydrocarbon law will be important in settling a long-standing dispute between Baghdad and the regional government in Kurdistan. Baghdad doesn't recognize scores of deals signed by the Kurds with foreign companies. The central government wants to review these deals and bring them in line with oil laws valid in Baghdad.

Kurds are opposing a new version of the law that assigns powers of the highest hydrocarbon authority, the Federal Oil and Gas Council, to the federal prime minister, while the Kurds want powers to rest with a collective authority whose members are to be nominated by the parliament.

Baghdad and the Kurds are most divided over the extent of decentralization and federalism in the oil sector.

"We are opposing a provision of the current draft law that forbids regions within Iraq from having the right to negotiate and sign contracts," said Mr. al-Atroshi.

Some experts on the region say that both sides need to make some concessions to reach agreement on the draft law, while others say the Kurds wouldn't accept Baghdad controlling the region's oil resources and changing deals already signed with international oil companies.

"Compromise on the oil and gas issue has always been important because of a fundamental contradiction between Baghdad's and Erbil's vision of power and sovereignty in Iraq," said Raad Alkadiri, director for country strategies and partner at PFC Energy, the Washington, D.C.-based strategic-advisory firm.

"I do not expect the Kurds to be willing to compromise away their own oil law [which gives them exclusive right to govern their own resources] and the control over their natural resources, as this is the economic fundament for their retention of their far-reaching autonomy over the long term," said Samuel Ciszuk, an analyst at U.K.-based consultancy KBC Energy Economics.

The Kurds also disagree with the current draft of the Iraq hydrocarbon law because it gives the federal oil ministry exclusive powers that overwhelm those of the proposed Federal Oil and Gas Council, Mr. al-Atroshi said.

Write to Hassan Hafidh at

Credit: By Hassan Hafidh

Subject: Petroleum industry

Location: United States--US Baghdad Iraq Kurdistan

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Oct 18, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1112811774

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Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Belgians Probe Death of Exxon Manager

Author: Torello, Alessandro

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 Oct 2012: n/a.

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BRUSSELS--An executive with U.S. oil giant Exxon Mobil Corp. was shot dead in Brussels earlier this month after leaving a restaurant with his wife, Belgian authorities said Friday.

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BRUSSELS--Belgian authorities are seeking clues about the death of an Exxon Mobil Corp. manager, killed earlier this month with no apparent motive after a Sunday dinner at a local restaurant.

Nicholas Mockford was killed on the night of Oct. 14 as he was leaving a restaurant on the outskirts of the Belgian capital after dining there with his wife, authorities said Friday. He was shot three times, while his wife was fiercely beaten, but not shot.

"All lines of inquiry are being pursued," Geneviève Seressia, a spokeswoman for the investigating judge, said Friday. "There was no theft," she said.

Two people attacked the Mockfords, Ms. Seressia said.

Mr. Mockford was a department manager at Exxon Mobil's offices in Mechelen, a town just outside Brussels where about 1,000 employees work at the company's regional headquarters, a spokesman for Exxon Mobil Belgium said. Mr. Mockford had worked at Exxon for many years, and he had been posted in Belgium for several, the spokesman said, without giving specific details.

Mr. Mockford's work was related to chemicals and their use in making plastics. At a conference two years ago, he was listed as a speaker on possible alternatives to phthalate plasticizer, a material that is used to soften polyvinyl chloride, which is in turn used to make window frames and other things.

Exxon Mobil said in a statement that there is no indication the killing is linked to Mr. Mockford's work.

"Mr. Mockford was a department manager at our office close to Brussels, but we have no indication that the incident was work-related," the company said in a statement. "Our thoughts are with his family, friends and colleagues and we are supporting them as best we can at this very difficult time," it said.

Mr. Mockford was a member of a golf club just on the outskirts of Brussels. He played in a competition there the very day he was killed, the club's sports manager, Andrew Watson, said.

"He wasn't the greatest golfer, but he was a very nice person," Mr. Watson said, adding that Mr. Mockford would show up at the club--which he had joined at least six years ago--every couple of weekends if not more.

A resident of Grimbergen, a wealthy neighborhood just outside Brussels, Mr. Mockford was very discreet and polite. "He didn't talk an awful lot about his work," Mr. Watson said, adding that Mr. Mockford, who also spoke French but not Dutch, used to go to the club on the weekend, even though he didn't seem to travel much for work.

Sarah Kent in London contributed to this article.

Write to Alessandro Torello at

Credit: By Alessandro Torello

Subject: Petroleum industry; Manycountries

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Oct 26, 2012

Section: World

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1115270194

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Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon's Profit Slips

Author: González, Ángel; Fowler, Tom

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Nov 2012: n/a.

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Exxon Mobil Corp. reported a 7.4% drop in third-quarter earnings on lower production and weaker prices for its natural gas, offsetting benefits from stronger margins in its refining arm.

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Exxon Mobil Corp.'s third-quarter earnings fell 7.4% as it fetched lower prices for oil and gas and production fell to its lowest level in three years.

Profit in its refining segment nearly doubled, however, enabling the world's largest publicly traded oil company by market capitalization to beat Wall Street expectations.

Exxon posted a profit of $9.57 billion, or $2.09 a share, down from $10.33 billion, or $2.13 a share, a year earlier. Revenue decreased 7.7% to $115.71 billion.

Analysts polled by Thomson Reuters most recently projected earnings of $1.95 a share on revenue of $112.4 billion.

While the entire oil industry has suffered from unstable prices for crude and natural gas in recent quarters, Exxon's production woes underscore how challenging it is for the biggest oil companies to boost production in a meaningful way despite massive investments.

The Texas oil giant's output fell 7.5% to an average of about four million barrels a day, the lowest level since the third quarter of 2009. Excluding the effect of divestitures, production-sharing contracts and quotas set by the Organization of Petroleum Exporting Countries, production fell 2.9%, a number that analysts consider disappointing. Anglo-Dutch oil giant Royal Dutch Shell PLC, which also reported results Thursday, saw production fall 1% from a year earlier, even as analysts had expected a 2% increase.

"Clearly chronic production declines are not what we want to see," said Pavel Molchanov, an analyst with Raymond James.

However, some of Exxon's production decline involved relatively unprofitable U.S. natural gas, said analysts with Simmons & Co. Exxon became the largest natural-gas producer in the U.S. after its acquisition in 2010 of XTO Energy Inc. for about $26 billion.

David Rosenthal, Exxon's vice president of investor relations, said in a conference call that a decrease in U.S. production reflects in part the fact that the company has been moving drilling rigs from natural-gas-rich shale areas to more profitable oil-rich regions. In the second quarter about half of the rigs were focused on oil or so-called "liquids rich" formations, while more recently about two-thirds of the rigs were aimed at liquids, he said, adding that production in these areas is beginning to ramp up as the company is moving from studying the formations to full-fledged development.

Exxon has recently sought to boost its reserves and production, especially of more profitable crude oil, by buying assets in the prolific Bakken shale in North Dakota from Denbury Resources Inc. It also has struck ambitious joint ventures with giants like OAO Rosneft to tap massive quantities of Arctic resources, but that is an effort that could take many years.

Last month, Exxon said it agreed to buy Canadian oil and natural-gas producer Celtic Exploration Ltd. for about $2.63 billion--its largest such deal since it acquired XTO--as the company remains optimistic about long-term prospects for the sector.

Mr. Rosenthal said that Exxon's production is about 1% below its forecast, reflecting divestitures, downtime due to maintenance and higher-than-expected prices that had a negative impact on the amount of oil Exxon receives in production-sharing contracts. But he pointed to a list of big oil projects such as the Kearl oil-sands project in Canada that "are all in the process of starting up as planned," and other projects in coming years in Indonesia, Papua New Guinea and Australia that will add a significant production boost.

In the latest quarter, exploration-and-production earnings declined 29% to $5.97 billion amid lower prices for liquids and natural gas and lower production. Refining-and-marketing earnings more than doubled to $3.19 billion mainly on stronger refining margins.

Write to Ángel González at and Tom Fowler at

Credit: By Ángel González And Tom Fowler

Subject: Petroleum industry; Financial performance

Location: United States--US

Company / organization: Name: ConocoPhillips Co; NAICS: 211111; Name: Chevron Corp; NAICS: 324110, 211111; Name: Celtic Exploration Ltd; NAICS: 211111; Name: Thomson Reuters; NAICS: 511110, 511140; Name: Hess Corp; NAICS: 447110, 324110, 211111; Name: XTO Energy Inc; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Nov 1, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1124838024

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Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Corporate News: Exxon Profit Slips As Production Falls

Author: Gonzalez, Angel; Fowler, Tom

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]02 Nov 2012: B.7.

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Abstract:

While the entire oil industry has suffered from unstable prices for crude oil and natural gas in recent quarters, Exxon's production woes underscore how challenging it is for the biggest oil companies to boost production in a meaningful way despite massive investments.

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Full text:  

Exxon Mobil Corp.'s third-quarter earnings fell 7.4% as it fetched lower prices for oil and gas and production fell to its lowest level in three years.

Profit in its refining segment nearly doubled, however, enabling the world's largest publicly traded oil company by market capitalization to beat Wall Street expectations.

Exxon posted a profit of $9.57 billion, or $2.09 a share, down from $10.33 billion, or $2.13 a share, a year earlier. Revenue decreased 7.7% to $115.71 billion.

While the entire oil industry has suffered from unstable prices for crude oil and natural gas in recent quarters, Exxon's production woes underscore how challenging it is for the biggest oil companies to boost production in a meaningful way despite massive investments.

The Texas oil giant's output fell 7.5% to an average of about four million barrels a day, the lowest level since the third quarter of 2009. Excluding the effect of divestitures, production-sharing contracts and quotas set by the Organization of Petroleum Exporting Countries, production fell 2.9%, a number that analysts consider disappointing. Anglo-Dutch oil giant Royal Dutch Shell PLC, which also reported results Thursday, said production fall 1% from a year earlier.

David Rosenthal, Exxon's vice president of investor relations, said in a conference call that a decrease in U.S. production reflects in part the fact that the company has been moving drilling rigs from natural-gas-rich shale areas to more-profitable oil-rich regions. In the second quarter about half of the rigs were focused on oil or so-called "liquids rich" formations, while more recently about two-thirds of the rigs were aimed at liquids, he said, adding that production in these areas is beginning to increase as the company is moving from studying the formations to full-fledged development.

Exploration-and-production earnings declined 29% to $5.97 billion amid lower prices for liquids and natural gas and lower production. Refining-and-marketing earnings more than doubled to $3.19 billion, mainly on stronger margins.

Separately, Shell said it was shifting the focus of its energy production in North America toward oil as weak prices from the shale-gas glut hurt its earnings.

Shell said profit on the basis of clean current cost of supplies -- a figure that strips gains or losses from inventories and other nonoperating items out of net profit -- fell to $6.56 billion in the third quarter, down 6.3%.

Including a $1.01 billion gain on the value of inventories and a $432 million impairment, mainly on the value of U.S. natural-gas assets, and U.K. tax changes, Shell's net profit for the quarter was $7.14 billion, up 2.3%. Revenue fell 8.4%.to $115.43 billion.

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Credit: By Angel Gonzalez and Tom Fowler

Subject: Petroleum industry; Financial performance; Corporate profits

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 9190: United States; 8510: Petroleum industry; 3400: Investment analysis & personal finance

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.7

Publication year: 2012

Publication date: Nov 2, 2012

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1125266866

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1125266866?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distrib ution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

The New Haven for Investors; Short-Term Bonds of Exxon and J&J Offer Lower Yields Than Similar Treasurys

Author: McGee, Patrick; Burne, Katy

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Nov 2012: n/a.

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Abstract:

Mr. Bianco recalled a few similar instances in the past 30 years but none lasted long. Since the turn of the 20th century, Treasurys have formed the benchmark for fixed-rate U.S. company debt. "Every day the debt and credit profile of the U.S. gets worse, yet you have corporate America that is lean and mean," said Jason Graybill, senior managing director at Carret, who oversees a $1.2 billion bond portfolio and sold Treasurys 18 months ago to pile into more corporate debt.

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Treasurys have a new rival for safe-haven status: U.S. companies.

Bonds of Exxon Mobil and Johnson & Johnson are trading with yields below those of comparable Treasurys, a sign that investors perceive them as a safer bet. It is a rare phenomenon that some market observers said could be the beginning of a new era for debt markets. It could ultimately mean some companies will borrow at lower rates than the U.S. government.

For now, just a handful of relatively short-term bonds yield less than comparable Treasury bonds. But some market observers said some fundamental changes in the financial health of U.S. companies relative to the government, including the fact that some corporations are more highly rated than Uncle Sam, suggest it could become a longer-lasting trend.

"If it grows to be more like dozens of issues, then it stops becoming an anomaly and it becomes a big deal," said James Bianco, founder of Bianco Research in Chicago. Mr. Bianco recalled a few similar instances in the past 30 years but none lasted long.

Since the turn of the 20th century, Treasurys have formed the benchmark for fixed-rate U.S. company debt. Companies and investors measure corporate borrowing rates relative to what the government pays. But several forces are combining to upend that market convention.

Money is pouring into highly rated U.S. corporate bonds at an even faster pace than Treasury debt, according to fund-tracker Lipper, as buyers clamor for investments perceived as safe that typically also yield a bit more than Treasurys. A shrinking supply of top-rated debt is also driving investors toward the highest-rated U.S. companies. That demand has driven up bond prices and pushed down yields.

The soaring demand has enabled companies of all sizes to raise $1.2 trillion from issuing debt this year, already the busiest year on record, according to data provider Dealogic. U.S. corporations, now sitting on $1.73 trillion of cash and borrowing at the lowest rates in history, are arguably in the best shape ever.

Should the economy continue to pick up steam, U.S. companies will become even healthier, some argue. By contrast, the Treasury is burdened with more debt than ever, and government deficits are likely to keep increasing for the foreseeable future.

The prospect of further upheaval, as Congress battles whether to extend a raft of tax cuts and clip spending, is adding to the uncertainty. Some investors worry that the country could face a second credit-rating downgrade, following Standard & Poor's cut below triple-A last year.

"Every day the debt and credit profile of the U.S. gets worse, yet you have corporate America that is lean and mean," said Jason Graybill, senior managing director at Carret, who oversees a $1.2 billion bond portfolio and sold Treasurys 18 months ago to pile into more corporate debt. "It's only a matter of time" before companies offer new debt below Treasury yields, he said.

Still, some observers argue that yields on corporate bonds could soon rise. They said the bonds of Exxon and Johnson & Johnson are short-term bonds that are inherently volatile. And others said U.S. government debt is still widely seen as the safest debt available. The market is larger and much more active, making it more attractive than corporate debt to some investors.

"The Treasury has an unlimited printing press and there will always be demand," said Kam Poon, portfolio manager of short-term fixed-income strategies at Aberdeen Asset Management in Philadelphia. Mr. Poon, who oversees $1.1 billion of bonds, has sold corporate bonds in which the yields have been close to Treasurys, as well as securities whose yields have dipped below Treasurys.

The phenomenon has been seen in what is known as the secondary bond market, in which bonds are traded after they are first issued.

Bonds of Exxon coming due in 13 months were quoted on Tuesday at 0.01 percentage point less than the comparable Treasury, according to Benchmark Solutions, a pricing service. Bonds of Johnson & Johnson due in May 2014 also recently traded at 0.01 percentage point less than Treasurys. Both are rated triple-A by S&P. Representatives for Exxon and Johnson & Johnson declined to comment.

In the new-issue market, companies continue to set records. Microsoft Corp. on Friday sold five-year bonds at a yield of just 0.27 percentage point above comparable Treasurys, the narrowest premium on such debt going back to 1994, according to Dealogic.

People familiar with the sale said Microsoft wanted to take advantage of low rates. Microsoft will put the $2.25 billion it raised toward early repayment of similar debt the company issued in February 2011; its new five-year debt Friday priced to yield 0.875% compared with 2.5% last year.

"These are truly unprecedented conditions for blue-chip companies in the debt markets," said Brent Callinicos, treasurer of Internet-search firm Google Inc. Google bonds due in 2014 yield just 0.02 percentage point over Treasurys.

The phenomenon could become more widespread as investors continue to search among a shrinking pool of highly rated bonds. According to Credit Suisse, the share of world-wide government debt rated triple-A has fallen to 39% of the total from 58% in early 2010.

Corporate bonds "are definitely the new safe havens in this world," said Fer Koch, director of U.S. credit strategy at Credit Suisse.

Write to Patrick McGee at and Katy Burne at

Credit: By Patrick McGee and Katy Burne

Subject: Treasuries; Corporate debt; Investment policy; Bond markets; Bond issues

Location: United States--US

Company / organization: Name: Congress; NAICS: 921120; Name: Microsoft Corp; NAICS: 334611, 511210; Name: Standard & Poors Corp; NAICS: 541519, 511120, 523999, 561450

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Nov 7, 2012

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1139208157

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1139208157?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

The New Haven for Investors --- Short-Term Bonds of Exxon and J&J Offer Lower Yields Than Similar Treasurys

Author: McGee, Patrick; Burne, Katy

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]07 Nov 2012: C.1. [Duplicate]

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Abstract:

Mr. Bianco recalled a few similar instances in the past 30 years but none lasted long. Since the turn of the 20th century, Treasurys have formed the benchmark for fixed-rate U.S. company debt. "Every day the debt and credit profile of the U.S. gets worse, yet you have corporate America that is lean and mean," said Jason Graybill, senior managing director at Carret, who oversees a $1.2 billion bond portfolio and sold Treasurys 18 months ago to pile into more corporate debt.

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Treasurys have a new rival for safe-haven status: U.S. companies.

Bonds of Exxon Mobil and Johnson & Johnson are trading with yields below those of comparable Treasurys, a sign that investors perceive them as a safer bet. It is a rare phenomenon that some market observers said could be the beginning of a new era for debt markets. It could ultimately mean some companies will borrow at lower rates than the U.S. government.

For now, just a handful of relatively short-term bonds yield less than comparable Treasury bonds. But some market observers said some fundamental changes in the financial health of U.S. companies relative to the government, including the fact that some corporations are more highly rated than Uncle Sam, suggest it could become a longer-lasting trend.

"If it grows to be more like dozens of issues, then it stops becoming an anomaly and it becomes a big deal," said James Bianco, founder of Bianco Research in Chicago. Mr. Bianco recalled a few similar instances in the past 30 years but none lasted long.

Since the turn of the 20th century, Treasurys have formed the benchmark for fixed-rate U.S. company debt. Companies and investors measure corporate borrowing rates relative to what the government pays. But several forces are combining to upend that market convention.

Money is pouring into highly rated U.S. corporate bonds at an even faster pace than Treasury debt, according to fund-tracker Lipper, as buyers clamor for investments perceived as safe that typically also yield a bit more than Treasurys. A shrinking supply of top-rated debt is also driving investors toward the highest-rated U.S. companies. That demand has driven up bond prices and pushed down yields.

The soaring demand has enabled companies of all sizes to raise $1.2 trillion from issuing debt this year, already the busiest year on record, according to data provider Dealogic. U.S. corporations, now sitting on $1.73 trillion of cash and borrowing at the lowest rates in history, are arguably in the best shape ever.

Should the economy continue to pick up steam, U.S. companies will become even healthier, some argue. By contrast, the Treasury is burdened with more debt than ever, and government deficits are likely to keep increasing for the foreseeable future.

The prospect of further upheaval, as Congress battles whether to extend a raft of tax cuts and clip spending, is adding to the uncertainty. Some investors worry that the country could face a second credit-rating downgrade, following Standard & Poor's cut below triple-A last year.

"Every day the debt and credit profile of the U.S. gets worse, yet you have corporate America that is lean and mean," said Jason Graybill, senior managing director at Carret, who oversees a $1.2 billion bond portfolio and sold Treasurys 18 months ago to pile into more corporate debt. "It's only a matter of time" before companies offer new debt below Treasury yields, he said.

Still, some observers argue that yields on corporate bonds could soon rise. They said the bonds of Exxon and Johnson & Johnson are short-term bonds that are inherently volatile. And others said U.S. government debt is still widely seen as the safest debt available. The market is larger and much more active, making it more attractive than corporate debt to some investors.

"The Treasury has an unlimited printing press and there will always be demand," said Kam Poon, portfolio manager of short-term fixed-income strategies at Aberdeen Asset Management in Philadelphia. Mr. Poon, who oversees $1.1 billion of bonds, has sold corporate bonds in which the yields have been close to Treasurys, as well as securities whose yields have dipped below Treasurys.

The phenomenon has been seen in what is known as the secondary bond market, in which bonds are traded after they are first issued.

Bonds of Exxon coming due in 13 months were quoted on Tuesday at 0.01 percentage point less than the comparable Treasury, according to Benchmark Solutions, a pricing service. Bonds of Johnson & Johnson due in May 2014 also recently traded at 0.01 percentage point less than Treasurys. Both are rated triple-A by S&P. Representatives for Exxon and Johnson & Johnson declined to comment.

In the new-issue market, companies continue to set records. Microsoft Corp. on Friday sold five-year bonds at a yield of just 0.27 percentage point above comparable Treasurys, the narrowest premium on such debt going back to 1994, according to Dealogic.

People familiar with the sale said Microsoft wanted to take advantage of low rates. Microsoft will put the $2.25 billion it raised toward early repayment of similar debt the company issued in February 2011; its new five-year debt Friday priced to yield 0.875% compared with 2.5% last year.

"These are truly unprecedented conditions for blue-chip companies in the debt markets," said Brent Callinicos, treasurer of Internet-search firm Google Inc. Google bonds due in 2014 yield just 0.02 percentage point over Treasurys.

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Credit: By Patrick McGee and Katy Burne

Subject: Treasuries; Bond markets; Credit markets (wsj)

Location: United States--US

Classification: 9190: United States; 3400: Investment analysis & personal finance

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: C.1

Publication year: 2012

Publication date: Nov 7, 2012

column: Credit Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1139457594

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Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Iraq Says Exxon in Talks to Sell Stake in Field

Author: Hassan Hafidh

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Nov 2012: n/a.

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Iraq has qualified some 46 companies to take part in its licensing auctions, including Royal Dutch Shell PLC, BP PLC, Eni SpA, OAO Lukoil Holdings, Occidental Corp. and China National Petroleum Corp., or CNPC.

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BAGHDAD--U.S. energy giant Exxon Mobil Corp. has begun talks with other international oil companies to sell its stake in Iraq's West Qurna-1 oil field in southern Iraq, a senior Iraqi oil official said Wednesday.

"There is a letter from Exxon to [Iraqi national oil company] South Oil Co. in which it said that it has started discussions with some parties, companies to sell its stake in West Qurna-1," Abdul Mahdy al-Ameedi told reporters in Baghdad.

Exxon needs to sell its stake to one of the companies that were previously prequalified by the oil ministry to acquire Iraqi oil and gas projects, Mr. al-Ameedi told reporters in Baghdad.

Iraq has qualified some 46 companies to take part in its licensing auctions, including Royal Dutch Shell PLC, BP PLC, Eni SpA, OAO Lukoil Holdings, Occidental Corp. and China National Petroleum Corp., or CNPC.

Mr. al-Ameedi, however, didn't say which companies Exxon Mobil is talking to in order to sell its stake.

Exxon declined to comment.

The Texas-based company signed an agreement with the Kurdish Regional Government in northern Iraq in 2011 to explore for oil there, in defiance of Baghdad, which says only the central government has the right to grant such licenses. The central government has previously said Exxon Mobil must choose whether it wants to continue operating in southern Iraq, or move to Kurdistan, but that it can't do both.

After promising to freeze its operations in Kurdistan over the summer, The Wall Street Journal reported last month that Exxon Mobil is planning to start exploratory drilling there in early 2013.

At West Qurna-1, Exxon and minority partner Shell have raised output to nearly 400,000 barrels a day from 244,000 barrels a day when the pair signed up for the project in early 2010. The contract targets eventual output of 2.825 million barrels a day.

The venture will get some $1.90 for each extra barrel of oil produced above the 244,000 barrel-a-day baseline.

Tom Fowler contributed to this article.

Credit: By Hassan Hafidh

Subject: Petroleum industry; Petroleum production; Iraq War-2003

Location: United States--US Kurdistan Iraq

Company / organization: Name: Occidental Corp; NAICS: 211111; Name: South Oil Co; NAICS: 211111; Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Eni SpA; NAICS: 324110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Nov 7, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1140374484

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1140374484?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Iraq Says Exxon Seeks Bids on Oil-Field Stake

Author: Hassan Hafidh

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Nov 2012: n/a.

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BAGHDAD--U.S. energy company Exxon Mobil Corp. has asked interested oil companies to submit offers in December to buy its stake in a multibillion-dollar project in southern Iraq, Iraq's deputy prime minister for energy affairs said Thursday.

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BAGHDAD--U.S. energy company Exxon Mobil Corp. has asked interested oil companies to submit offers in December to buy its stake in a multibillion-dollar project in southern Iraq, Iraq's deputy prime minister for energy affairs said Thursday.

Exxon, which upset Baghdad by signing a deal last year to explore for oil in Iraq's semiautonomous Kurdish region, has informed Iraq of its wish to sell its 60% stake in the West Qurna-1 project, Hussein al-Shahristani said in an interview.

"Exxon has started negotiations with companies, and it has set December to receive bids from them," Mr. Shahristani said.

"We are expecting the sale to be finalized by the end of this year," he said.

Exxon declined to comment.

Exxon can only sell its stake to the firms that the Iraqi Oil Ministry has prequalified to win oil and gas contracts in Iraq. "The buyer should be qualified in accordance with the criteria we have set up and Exxon needs to secure the Iraqi government's approval of the buyer before it sells its stake," Mr. Shahristani said.

Earlier in the day, the head of the largest Iraqi oil-production company, the South Oil Co., said Exxon wanted to share data on West Qurna-1 with companies like BP PLC, Eni SpA, Lukoil Holdings and other frms in order to sell part of its stake. The deputy prime minister, however, said Exxon would sell all of its stake.

At West Qurna-1, Exxon and minority partner Royal Dutch Shell PLC have raised output to nearly 400,000 barrels a day from 244,000 barrels a day when the pair signed up for the project in early 2010. The contract targets eventual output of 2.8 million barrels a day.

The venture gets some $1.90 for each extra barrel of oil produced above the 244,000 barrel-a-day baseline.

The withdrawal of Exxon from the gigantic West Qurna-1 oil field wouldn't affect Iraq's plans to increase production, Mr. Shahristani said. "Exxon's departure from West Qurna-1 won't have any effect on our production targets and all [oil] contracting companies working in Iraq are working at high efficiency to up output," he said.

Mr. Shahristani said Iraq's crude-oil production is expected to hit 3.6 million barrels a day in 2013, from above three million barrels a day now. He said Iraq is planning to export some 2.9 million barrels a day in 2013, up from the current 2.6 million barrels a day.

In November last year, Exxon Mobil provoked protest from Baghdad when it became the first major international oil company to sign petroleum contracts with the Kurdistan Regional Government, or KRG, despite Baghdad's threats to expel it from the contract in southern Iraq. Exxon signed a deal to develop six blocks with the KRG, which is locked in a feud with the Arab-dominated central government over land and oil rights.

Earlier this year, U.S. oil company Chevron Corp., France's Total SA and the oil-producing arm of Russia's Gazprom all followed Exxon Mobil's lead by striking their own deals in Kurdistan.

Write to Hassan Hafidh at

Credit: By Hassan Hafidh

Subject: Petroleum production; Petroleum industry; Prime ministers

Location: United States--US Iraq

Company / organization: Name: South Oil Co; NAICS: 211111; Name: Eni SpA; NAICS: 324110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Nov 8, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1143425089

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1143425089?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Iraq Says Exxon Asked To Discuss Field Sale With Other Firms

Author: Hassan Hafidh

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Nov 2012: n/a.

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Abstract: None available.

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LONDON--Exxon Mobil Corp. has asked for permission to share data about the West Qurna 1 oil field project in Iraq with BP PLC, Eni SpA, Lukoil Holdings and a number of other companies, with the aim of selling part of its stake in the project, the head of Iraq's Southern Oil Company, Dhiaa Jafar, said Thursday.

Exxon signed an agreement with the Kurdish Regional Government in 2011 to explore for oil there, in defiance of Baghdad, which says only the central Iraqi government has the right to grant such licenses.

Exxon Mobil also operates the West Qurna 1 project, which is boosting production by applying the latest technology to an old oil field neglected during many years of conflict and sanctions. It has raised output to nearly 400,000 barrels a day from 244,000 barrels a day. The contract targets eventual output of 2.825 million barrels a day.

The government has agreed to pay Exxon Mobil $1.90 for each additional barrel of oil pumped from the field. The fees would barely be enough to cover the companies' costs, and industry analysts say Exxon Mobil's exploration opportunities in Kurdistan look much more attractive.

Credit: By Hassan Hafidh

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Nov 8, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1143429891

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1143429891?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Cost of Exxon LNG Project Jumps Again

Author: Ross, Kelly

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Nov 2012: n/a.

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The increase illustrates the intensifying cost pressures global oil companies such as Exxon, Chevron Corp. and Royal Dutch Shell PLC face as they seek to tap Asia's growing demand for cleaner-burning fuels by building LNG export terminals in places such as Australia and Papua New Guinea.

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SYDNEY--Exxon Mobil Corp. said Monday that the cost of building a liquefied-natural-gas project in Papua New Guinea had jumped about 20% to US$19 billion due to exchange-rate movements, disputes with landowners and torrential rain.

The increase illustrates the intensifying cost pressures global oil companies such as Exxon, Chevron Corp. and Royal Dutch Shell PLC face as they seek to tap Asia's growing demand for cleaner-burning fuels by building LNG export terminals in places such as Australia and Papua New Guinea.

Chevron said this year that it was reviewing costs at the 43 billion Australian dollar (US$45 billion) Gorgon LNG project in Western Australia state, citing a 20% rise in the Australian dollar since construction started in 2009. Exxon and Shell are also large investors in Gorgon.

The cost of Exxon's LNG project in Papua New Guinea is now expected to rise by $3.3 billion from the previous estimate, the company said in a written statement. The facility was 70%-completed and on track to ship the first cargoes to China, Japan and Taiwan in 2014, Exxon said.

Exxon said the cost overrun would be offset by higher output capacity of 6.9 million metric tons a year, up from 6.6 million tons, as well as a 30% rise in the price of LNG since construction of the project began in 2009.

"Despite the cost increase, it's still the most profitable project under construction in the region," said Matthew Howell, an analyst at energy-industry consultancy Wood Mackenzie. "We don't see the increase affecting its commercial viability."

The price tag for the project has been revised previously. Last year, Exxon raised its estimate to US$15.7 billion from an initial US$15 billion.

The increases underscore the unique challenges companies face in Papua New Guinea, an impoverished Pacific nation better known for its jungles and lawlessness than its energy industry.

Exxon operates and owns 33.2% of PNG LNG, as the project is known. Australia's Oil Search Ltd. and Santos Ltd. own 29% and 13.5%, respectively. The balance is split mostly among the local government and dozens of landowning tribes that frequently stage protests--and violent attacks--against what they say is an unfair distribution of benefits from the project.

Papua New Guinea presents logistical challenges, including that of moving gas from the highlands to the coast via a 190-mile pipeline that traverses rugged terrain at as much as 650 feet above sea level. From the shore, the gas must be transported by a 250-mile underwater pipeline to a processing terminal.

Foreign-exchange accounted for US$1.4 billion of the latest cost increase, Oil Search said. Work stoppages and land-access disputes added US$1.2 billion, it said. An additional US$700 million was pinned on adverse logistics and weather conditions, including rainfall that Exxon said exceeded historic norms for most of the past two years.

Both Oil Search and Santos said they had ample liquidity to cover the additional funding requirements. Their shares fell 3.4% and 2.2%, respectively, in Sydney.

Write to Ross Kelly at

Credit: By Ross Kelly

Subject: Petroleum industry; LNG; Natural gas

Location: Asia United States--US Papua New Guinea Western Australia Australia

Company / organization: Name: Chevron Corp; NAICS: 324110, 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Nov 12, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1151023956

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1151023956?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Has An Oil Shortage

Author: Fowler, Tom

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Nov 2012: n/a.

ProQuest document link

Abstract:

The trucks will haul the sands to the $11 billion Kearl oil-sands-processing facility, which will sift out the prized Canadian crude and provide Exxon Mobil Corp. with up to 170,000 barrels of oil a day for decades to come.

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On a forested plain in Alberta next month, massive mechanical shovels will start scooping tons of oil-rich sands and loading them into three-story-tall dump trucks.

The trucks will haul the sands to the $11 billion Kearl oil-sands-processing facility, which will sift out the prized Canadian crude and provide Exxon Mobil Corp. with up to 170,000 barrels of oil a day for decades to come.

The world's largest publicly traded oil company by market capitalization is counting on Kearl and 20 other new projects to jump-start its slumping oil and gas output, which plummeted to three-year lows in its most recent quarter.

Exxon shares have gained 3.9% so far this year, though they are little changed from where they stood five years ago. The shares closed at $88.10 on Wednesday on the New York Stock Exchange.

Some analysts are skeptical the spate of projects--from Indonesia and Papua New Guinea to the deep waters off West Africa--will begin by 2014 as Exxon predicts and deliver the infusion of oil and gas it anticipates. Exxon estimates the projects could increase its daily oil production by up to 880,000 barrels, or about 22% of its current daily output.

"Delays are the rule, not the exception, in this industry," said Fadel Gheit, an analyst with Oppenheimer & Co.

Analysts with UBS expect Exxon's 2012 production to be down 5.7% for the year, compared with an expected 2.9% drop for Chevron Corp., a 2.7% decline for BP PLC and a 2.2% increase for Royal Dutch-Shell.

Increasing oil output has become daunting for energy companies such as Exxon, because big oil fields in easy to reach locations have gotten scarce, and government-controlled oil companies from countries such as Russia and China have become more aggressive, spending freely to outbid Western firms for the rights to the best projects.

There are other obstacles to production growth, including depletion of existing oil fields, which generally lose 5% to 7% of their output per year, according to analysts.

Lysle Brinker, director of energy-equity research for IHS-CERA, said Exxon has a good record for completing major projects close to budget and schedule. "They'd be the first to admit it doesn't always go smoothly, but Exxon has a better reputation than most for hitting its deadlines," Mr. Brinker said.

Exxon declined to discuss the start-up risks associated with specific projects. In discussions with analysts and investors, its executives have stressed they aren't looking to increase production overnight or at the expense of profitability, but bet on big projects that will provide significant profits for the long haul.

Exxon's annual spending on exploration and production projects has increased sharply: It now plans to spend around $37 billion per year through 2016, up from less than $20 billion in 2009.

Off the coast of Angola, Exxon is expecting additional production from an expansion of its Kizomba project, a series of deep-water oil wells that were among the first for that West African nation. With a 40% stake, Exxon will get 40,000 barrels per day of the targeted output.

In Indonesia, an offshore project known as Banyu Urip is expected to produce about 165,000 barrels per day by the end of 2014, with roughly 75,000 barrels for Exxon, a 45% owner.

In Papua New Guinea, meanwhile, a liquefied-natural-gas project is expected to export up to 940,000 cubic feet of gas--equivalent to 166,000 barrels of oil--to China and other Asian markets by 2014.

But the venture is proving more costly than anticipated: Exxon increased the price tag on the project by 21% to $19 billion this month, citing changes in foreign-exchange rates and delays from work stoppages.

The brunt of its projected production growth through 2014, 37%, comes from Canadian oil-sands projects such as Kearl, which has been in the works since 2009.

But the oil-sands projects are in remote locations that require many workers and billions of dollars in capital. They are also hamstrung in reaching customers outside of Canada due to limited pipeline capacity.

The 700,000-barrel-per-day Keystone XL pipeline, which will carry Canadian crude to Gulf coast refiners, is seen as one way around those limitations, but the project has faced stiff opposition from environmentalists.

Final approval of the project was delayed by President Barack Obama because of environmental concerns, but with the election over he is expected by many observers to give final approval. That approval may come with additional environmental requirements, however, which could add costs to and slow development of future oil-sands pipelines.

Even if all of the new projects come to pass, they wouldn't make up for Exxon's possible exit from a burgeoning project in southern Iraq that was expected to produce up to 1.6 million barrels a day for the company by 2016.

Iraqi officials said Exxon recently notified them that it plans to sell its 60% operating stake in the West Qurna project to another firm. The Iraqi government has said Exxon must choose between operating in southern Iraq or in semiautonomous Kurdistan in the north, where Exxon last year signed an agreement to explore for oil in defiance of Baghdad. Exxon has declined to comment on its plans in southern Iraq.

Still, despite the company's challenges, some analysts are loath to bet against Exxon. They estimate that investments such as the Kearl project, and the company's recent $1.6 billion purchase of Denbury Resources Inc.'s holdings in the Bakken Shale oil field in and around North Dakota, will help the company rebound.

Next year "should look better," for Exxon, said Raymond James & Assoc. analyst Pavel Molchanov, who expects the company's output will grow 3%.

Write to Tom Fowler at

Credit: By Tom Fowler

Subject: Oil fields; Petroleum production; Petroleum industry; Oil sands; Natural gas

Location: Indonesia Papua New Guinea

Company / organization: Name: UBS AG; NAICS: 522110, 523110, 523120, 523920, 523930; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Chevron Corp; NAICS: 324110, 211111; Name: BP PLC; NAICS: 447110, 324110, 211111; Name: New York Stock Exchange--NYSE; NAICS: 523210; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Nov 28, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1220486534

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1220486534?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Has an Oil Shortage

Author: Fowler, Tom

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Nov 2012: n/a.

ProQuest document link

Abstract:

The trucks will haul the sands to the $11 billion Kearl oil-sands-processing facility, which will sift out the prized Canadian crude and provide Exxon Mobil Corp. with up to 170,000 barrels of oil a day for decades to come.

Links: 360 Link to Full Text

Full text:  

On a forested plain in Alberta next month, massive mechanical shovels will start scooping tons of oil-rich sands and loading them into three-story-tall dump trucks.

The trucks will haul the sands to the $11 billion Kearl oil-sands-processing facility, which will sift out the prized Canadian crude and provide Exxon Mobil Corp. with up to 170,000 barrels of oil a day for decades to come.

The world's largest publicly traded oil company by market capitalization is counting on Kearl and 20 other new projects to jump-start its slumping oil and gas output, which plummeted to three-year lows in its most recent quarter.

Exxon shares have gained 3.9% so far this year, though they are little changed from where they stood five years ago. The shares closed at $88.10 on Wednesday on the New York Stock Exchange.

Some analysts are skeptical the spate of projects--from Indonesia and Papua New Guinea to the deep waters off West Africa--will begin by 2014 as Exxon predicts and deliver the infusion of oil and gas it anticipates. Exxon estimates the projects could increase its daily oil production by up to 880,000 barrels, or about 22% of its current daily output.

"Delays are the rule, not the exception, in this industry," said Fadel Gheit, an analyst with Oppenheimer & Co.

Analysts with UBS expect Exxon's 2012 production to be down 5.7% for the year, compared with an expected 2.9% drop for Chevron Corp., a 2.7% decline for BP PLC and a 2.2% increase for Royal Dutch-Shell.

Increasing oil output has become daunting for energy companies such as Exxon, because big oil fields in easy to reach locations have gotten scarce, and government-controlled oil companies from countries such as Russia and China have become more aggressive, spending freely to outbid Western firms for the rights to the best projects.

There are other obstacles to production growth, including depletion of existing oil fields, which generally lose 5% to 7% of their output per year, according to analysts.

Lysle Brinker, director of energy-equity research for IHS-CERA, said Exxon has a good record for completing major projects close to budget and schedule. "They'd be the first to admit it doesn't always go smoothly, but Exxon has a better reputation than most for hitting its deadlines," Mr. Brinker said.

Exxon declined to discuss the start-up risks associated with specific projects. In discussions with analysts and investors, its executives have stressed they aren't looking to increase production overnight or at the expense of profitability, but bet on big projects that will provide significant profits for the long haul.

Exxon's annual spending on exploration and production projects has increased sharply: It now plans to spend around $37 billion per year through 2016, up from less than $20 billion in 2009.

Off the coast of Angola, Exxon is expecting additional production from an expansion of its Kizomba project, a series of deep-water oil wells that were among the first for that West African nation. With a 40% stake, Exxon will get 40,000 barrels per day of the targeted output.

In Indonesia, an offshore project known as Banyu Urip is expected to produce about 165,000 barrels per day by the end of 2014, with roughly 75,000 barrels for Exxon, a 45% owner.

In Papua New Guinea, meanwhile, a liquefied-natural-gas project is expected to export up to 940,000 cubic feet of gas--equivalent to 166,000 barrels of oil--to China and other Asian markets by 2014.

But the venture is proving more costly than anticipated: Exxon increased the price tag on the project by 21% to $19 billion this month, citing changes in foreign-exchange rates and delays from work stoppages.

The brunt of its projected production growth through 2014, 37%, comes from Canadian oil-sands projects such as Kearl, which has been in the works since 2009.

But the oil-sands projects are in remote locations that require many workers and billions of dollars in capital. They are also hamstrung in reaching customers outside of Canada due to limited pipeline capacity.

The 700,000-barrel-per-day Keystone XL pipeline, which will carry Canadian crude to Gulf coast refiners, is seen as one way around those limitations, but the project has faced stiff opposition from environmentalists.

Final approval of the project was delayed by President Barack Obama because of environmental concerns, but with the election over he is expected by many observers to give final approval. That approval may come with additional environmental requirements, however, which could add costs to and slow development of future oil-sands pipelines.

If all of the new projects come to pass, they would more than make up for Exxon's possible exit from a massive project in southern Iraq, though the company would not say exactly how much oil it expected to book from its share of the project.

Iraqi officials said Exxon recently notified them that it plans to sell its 60% operating stake in the West Qurna project to another firm. The Iraqi government has said Exxon must choose between operating in southern Iraq or in semiautonomous Kurdistan in the north, where Exxon last year signed an agreement to explore for oil in defiance of Baghdad. Exxon has declined to comment on its plans in southern Iraq.

Still, despite the company's challenges, some analysts are loath to bet against Exxon. They estimate that investments such as the Kearl project, and the company's recent $1.6 billion purchase of Denbury Resources Inc.'s holdings in the Bakken Shale oil field in and around North Dakota, will help the company rebound.

Next year "should look better," for Exxon, said Raymond James & Assoc. analyst Pavel Molchanov, who expects the company's output will grow 3%.

Corrections Amplifications The new oil and gas projects Exxon Mobil Corp. has in development would, if completed, produce more energy in total than the company has been expected to book from the West Qurna project in Iraq in 2016. An earlier version of this article incorrectly said the West Qurna project was bigger for the company than all its new projects combined.

Write to Tom Fowler at

Credit: By Tom Fowler

Subject: Oil fields; Petroleum production; Petroleum industry; Oil sands; Natural gas

Location: Indonesia Papua New Guinea

Company / organization: Name: UBS AG; NAICS: 522110, 523110, 523120, 523920, 523930; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Chevron Corp; NAICS: 324110, 211111; Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: New York Stock Exchange--NYSE; NAICS: 523210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Nov 29, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1220487041

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1220487041?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Has An Oil Shortage

Author: Fowler, Tom

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]29 Nov 2012: B.1.

ProQuest document link

Abstract:

The trucks will haul the sands to the $11 billion Kearl oil-sands-processing facility, which will sift out the prized Canadian crude and provide Exxon Mobil Corp. with up to 170,000 barrels of oil a day for decades to come.

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Corrections & Amplifications

The new oil and gas projects Exxon Mobil Corp. has in development would, if completed, produce more energy in total than the company has been expected to book from the West Qurna project in Iraq in 2016. A Marketplace article about Exxon on Nov. 29 incorrectly said the West Qurna project was bigger for the company than all its new projects combined.

(WSJ Dec. 10, 2012)

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On a forested plain in Alberta next month, massive mechanical shovels will start scooping tons of oil-rich sands and loading them into three-story-tall dump trucks.

The trucks will haul the sands to the $11 billion Kearl oil-sands-processing facility, which will sift out the prized Canadian crude and provide Exxon Mobil Corp. with up to 170,000 barrels of oil a day for decades to come.

The world's largest publicly traded oil company by market capitalization is counting on Kearl and 20 other new projects to jump-start its slumping oil and gas output, which plummeted to three-year lows in its most recent quarter.

Exxon shares have gained 3.9% so far this year, though they are little changed from where they stood five years ago. The shares closed at $88.10 on Wednesday on the New York Stock Exchange.

Some analysts are skeptical the spate of projects -- from Indonesia and Papua New Guinea to the deep waters off West Africa -- will begin by 2014 as Exxon predicts and deliver the infusion of oil and gas it anticipates. Exxon estimates the projects could increase its daily oil production by up to 880,000 barrels, or about 22% of its current daily output.

"Delays are the rule, not the exception, in this industry," said Fadel Gheit, an analyst with Oppenheimer & Co.

Analysts with UBS expect Exxon's 2012 production to be down 5.7% for the year, compared with an expected 2.9% drop for Chevron Corp., a 2.7% decline for BP PLC and a 2.2% increase for Royal Dutch-Shell.

Increasing oil output has become daunting for energy companies such as Exxon, because big oil fields in easy to reach locations have gotten scarce, and government-controlled oil companies from countries such as Russia and China have become more aggressive, spending freely to outbid Western firms for the rights to the best projects.

There are other obstacles to production growth, including depletion of existing oil fields, which generally lose 5% to 7% of their output per year, according to analysts.

Lysle Brinker, director of energy-equity research for IHS-CERA, said Exxon has a good record for completing major projects close to budget and schedule. "They'd be the first to admit it doesn't always go smoothly, but Exxon has a better reputation than most for hitting its deadlines," Mr. Brinker said.

Exxon declined to discuss the startup risks associated with specific projects. In discussions with analysts and investors, its executives have stressed they aren't looking to increase production overnight or at the expense of profitability, but bet on big projects that will provide significant profits for the long haul.

Exxon's annual spending on exploration and production projects has increased sharply: It now plans to spend around $37 billion per year through 2016, up from less than $20 billion in 2009.

Off the coast of Angola, Exxon is expecting additional production from an expansion of its Kizomba project, a series of deep-water oil wells that were among the first for that West African nation. With a 40% stake, Exxon will get 40,000 barrels per day of the targeted output.

In Indonesia, an offshore project known as Banyu Urip is expected to produce about 165,000 barrels per day by the end of 2014, with roughly 75,000 barrels for Exxon, a 45% owner.

In Papua New Guinea, meanwhile, a liquefied-natural-gas project is expected to export up to 940,000 cubic feet of gas -- equivalent to 166,000 barrels of oil -- to China and other Asian markets by 2014.

But the venture is proving more costly than anticipated: Exxon increased the price tag on the project by 21% to $19 billion this month, citing changes in foreign-exchange rates and delays from work stoppages.

The brunt of its projected production growth through 2014, 37%, comes from Canadian oil-sands projects such as Kearl, which has been in the works since 2009.

But the oil-sands projects are in remote locations that require many workers and billions of dollars in capital. They are also hamstrung in reaching customers outside of Canada due to limited pipeline capacity.

The 700,000-barrel-per-day Keystone XL pipeline, which will carry Canadian crude to Gulf coast refiners, is seen as one way around those limitations, but the project has faced stiff opposition.

Even if all of the new projects come to pass, they wouldn't make up for Exxon's possible exit from a burgeoning project in southern Iraq that was expected to produce up to 1.6 million barrels a day for the company by 2016.

Despite the company's challenges, some analysts are loath to bet against Exxon. They estimate that investments such as the Kearl project, and the company's recent $1.6 billion purchase of Denbury Resources Inc.'s holdings in the Bakken Shale oil field in and around North Dakota, will help the company rebound.

Next year "should look better," for Exxon, said Raymond James analyst Pavel Molchanov, who expects the company's output will grow 3%.

Credit: By Tom Fowler

Subject: Oil fields; Petroleum production; Petroleum industry; Natural gas; Energy industry

Location: Indonesia Iraq Papua New Guinea

Company / organization: Name: UBS AG; NAICS: 522110, 523110, 523120, 523920, 523930; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Chevron Corp; NAICS: 324110, 211111; Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: New York Stock Exchange--NYSE; NAICS: 523210

Classification: 8510: Petroleum industry; 9172: Canada

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2012

Publication date: Nov 29, 2012

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1220551883

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1220551883?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Apple, Exxon Mobil: Money Flow Leaders (AAPL, XOM)

Author: MARKET DATA STAFF

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Nov 2012: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:  

Apple Inc. topped the list in late trading for, which tracks stocks that fell in price but had the largest inflow of money. See the.

Exxon Mobil Corp. topped the list for, which tracks stocks that rose in price but had the largest outflow of money. See the.

Go to () for complete coverage.

Credit: By MARKET DATA STAFF

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Nov 30, 2012

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1220935778

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1220935778?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon, Rosneft Set Siberia Tight-Oil Pilot Plan

Author: Marson, James

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Dec 2012: n/a.

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MOSCOW--Russian state-controlled oil giant OAO Rosneft and Exxon Mobil Corp. signed an agreement Friday for a pilot drilling program to assess tight oil reserves in Western Siberia, the companies said in a joint statement.

Exxon will provide financing of $300 million as well as technology and specialists for the pilot program. Drilling will begin in 2013, and the companies will select blocks for development in 2015.

Rosneft and Exxon signed a broad cooperation deal last year and agreed in June to develop the unconventional oil reserves at the Bazhenov and Achimov formations, which are believed to hold vast resources.

Rosneft will own 51% and Exxon 49% in the joint venture that will run the pilot program and potential commercial production.

Write to James Marson at

Credit: By James Marson

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Dec 7, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1223493727

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Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Sees Continent as Energy Exporter

Author: Fowler, Tom

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Dec 2012: n/a.

ProQuest document link

Abstract:

The closely watched annual forecast of energy trends, set to be released Tuesday, concludes the growth of U.S. and Canadian oil and gas production has staying power and could lead to more international shipments of oil and gas, said Bill Colton, Exxon's vice president of corporate strategic planning, who led the study.

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North America will become a net energy exporter by 2025, thanks to a surge in oil and gas production and rapid improvements in energy efficiency, Exxon Mobil Corp. predicts in its latest long-term energy outlook.

The closely watched annual forecast of energy trends, set to be released Tuesday, concludes the growth of U.S. and Canadian oil and gas production has staying power and could lead to more international shipments of oil and gas, said Bill Colton, Exxon's vice president of corporate strategic planning, who led the study.

Exxon's forecast follows similar estimates by the U.S. Energy Information Administration and the International Energy Agency, which have recently predicted North America will produce more energy than it uses in just a few decades, a shift with geopolitical as well as economic ramifications.

Exxon predicts that an anticipated decline in coal usage by power plants will accelerate as more efficient natural-gas-fired plants are built. The Irving, Texas, company forecasts coal use will drop 33% from 2010 to 2025,substantially more than its previous 23% estimate.

"The economics of natural gas in the power-generating sector continue to look even better over time," Mr. Colton said.

The U.S. is in the midst of a renaissance of oil and gas production thanks to a combination of technologies, including hydraulic fracturing and horizontal drilling, which are unlocking deposits trapped in shale formations throughout the country.

Daily U.S. oil production reached a 15-year high in September, according to the EIA, and is expected to keep climbing. U.S. natural-gas production will outpace the nation's demand by 2020, the EIA said last week.

Growing production from Canada's oil-sands region, much of it exported to the U.S., and the continued growth of deep-water Gulf of Mexico production is also bolstering forecasts.

The net energy exports forecast for North America by Exxon don't mean the U.S. would be energy independent, however, as it will still rely heavily on Canadian crude production, Mr. Colton said.

Global energy demand will increase 35% from 2010 to 2040, with most of the increased demand coming from developing nations like India and China, the Exxon report says.

Developed regions like the U.S., Canada and Europe will see their demand flat or declining as they become more efficient, the company said. By 2040 developed nations are expected to generate 80% more economic output than in 2010 but use the same amount of energy, Mr. Colton said.

Write to Tom Fowler at

Credit: By Tom Fowler

Subject: Petroleum industry; Energy policy; Natural gas

Location: United States--US Canada North America

Company / organization: Name: International Energy Agency; NAICS: 928120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Dec 11, 2012

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1227917278

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1227917278?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wa ll Street Journal

Exxon Find: America as Net Energy Exporter

Author: Fowler, Tom

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]11 Dec 2012: B.1.

ProQuest document link

Abstract:

The closely watched annual forecast of energy trends, set to be released Tuesday, concludes the growth of U.S. and Canadian oil and gas production has staying power and could lead to more international shipments of oil and gas, said Bill Colton, Exxon's vice president of corporate strategic planning, who led the study.

Links: 360 Link to Full Text

Full text:  

North America will become a net energy exporter by 2025, thanks to a surge in oil and gas production and rapid improvements in energy efficiency, Exxon Mobil Corp. predicts in its latest long-term energy outlook.

The closely watched annual forecast of energy trends, set to be released Tuesday, concludes the growth of U.S. and Canadian oil and gas production has staying power and could lead to more international shipments of oil and gas, said Bill Colton, Exxon's vice president of corporate strategic planning, who led the study.

Exxon's forecast follows similar estimates by the U.S. Energy Information Administration and the International Energy Agency, which have recently predicted North America will produce more energy than it uses in just a few decades, a shift with geopolitical as well as economic ramifications.

Exxon predicts that an anticipated decline in coal usage by power plants will accelerate as more efficient natural-gas-fired plants are built. The Irving, Texas, company forecasts coal use will drop 33% from 2010 to 2025,substantially more than its previous 23% estimate.

"The economics of natural gas in the power-generating sector continue to look even better over time," Mr. Colton said.

The U.S. is in the midst of a renaissance of oil and gas production thanks to a combination of technologies, including hydraulic fracturing and horizontal drilling, which are unlocking deposits trapped in shale formations throughout the country.

Daily U.S. oil production reached a 15-year high in September, according to the EIA, and is expected to keep climbing. U.S. natural-gas production will outpace the nation's demand by 2020, the EIA said last week.

Growing production from Canada's oil-sands region, much of it exported to the U.S., and the continued growth of deep-water Gulf of Mexico production is also bolstering forecasts.

The net energy exports forecast for North America by Exxon don't mean the U.S. would be energy independent, however, as it will still rely heavily on Canadian crude production, Mr. Colton said.

Global energy demand will increase 35% from 2010 to 2040, with most of the increased demand coming from developing nations like India and China, the Exxon report says.

Developed regions like the U.S., Canada and Europe will see their demand flat or declining as they become more efficient, the company said. By 2040 developed nations are expected to generate 80% more economic output than in 2010 but use the same amount of energy, Mr. Colton said.

Subscribe to WSJ:

Credit: By Tom Fowler

Subject: Petroleum industry; Petroleum production; Forecasting

Location: United States--US

Company / organization: Name: International Energy Agency; NAICS: 928120; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 9190: United States; 8510: Petroleum industry

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2012

Publication date: Dec 11, 2012

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1229935712

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1229935712?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Mobil, iShares iBoxx InvesTop Investment Grade Corp. Bond Fund: Money Flow Leaders (XOM, LQD)

Author: MARKET DATA STAFF

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2012: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. topped the list in late trading for, which tracks stocks that fell in price but had the largest inflow of money. See the.

iShares iBoxx InvesTop Investment Grade Corp. Bond Fund topped the list for, which tracks stocks that rose in price but had the largest outflow of money. See the.

Go to () for complete coverage.

Credit: By MARKET DATA STAFF

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2012

Publication date: Dec 14, 2012

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1238323906

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1238323906?accountid=7117

Copyright: (c) 2012 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Delay Worsened Oil Spill, U.S. Probe Finds

Author: Nicas, Jack

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Jan 2013: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. delayed in entirely shutting down a ruptured pipeline in a Montana river in 2011, allowing an extra 1,000 barrels of crude oil to spill into the Yellowstone River, federal investigators said in a report released Wednesday.

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Exxon Mobil Corp. delayed in entirely shutting down a ruptured pipeline in a Montana river in 2011, allowing an extra 1,000 barrels of crude oil to spill into the Yellowstone River, federal investigators said in a report released Wednesday.

The Department of Transportation investigation found that scouring, or flood-induced erosion along the riverbed, exposed Exxon's Silvertip pipeline beneath the river, causing it to break in July 2011.

Recognizing a drop in pressure on the pipeline, an Exxon controller closed some valves within 10 minutes of the break, investigators said. But the worker and supervisors then discussed potential causes of the pressure drop for 46 minutes before closing other valves, investigators found, increasing the size of the spill by about two-thirds, to more than 1,500 barrels.

"Had [Exxon's] emergency shutdown procedures included the requirement that these [valves] were to be closed immediately after an abnormal event, the crude oil release volume would have been much less," the report said.

The accident report details the cause of the spill but does not specify fault or weigh whether Exxon violated rules. The DOT said it is reviewing the report to determine if Exxon will be sanctioned.

Exxon declined to comment because the company said it is still reviewing the report.

Those four pipes were installed at the federal minimum depth of four to five feet beneath the riverbed. River experts say that requirement is lacking, and in 2011, the U.S. Geological Survey found scouring on the Missouri River basin, which includes the Yellowstone, dug as deep as 41 feet into the riverbed.

Congress last year ordered the DOT to review pipeline accidents at river crossings. That report, which was also released on Wednesday, found that since 1991, scouring has helped cause at least 16 pipeline breaks in the U.S., spilling a combined 57,680 barrels of hazardous liquids. The accidents account for 0.5% of significant hazardous-liquid incidents in the U.S. over the period.

Exxon has since reburied some pipeline river crossings much deeper in Montana, state officials said.

Daniel Gilbert contributed to this article.

Corrections & Amplifications Exxon Mobil didn't install all four pipelines in the area of the Yellowstone River hit by a rupture and oil spill in 2011. An earlier version of this article incorrectly said that Exxon had installed all four pipelines.

Credit: By Jack Nicas

Subject: Pipelines; Petroleum industry; Oil spills

Location: United States--US Yellowstone River

People: Gilbert, Daniel

Company / organization: Name: Congress; NAICS: 921120; Name: Department of Transportation; NAICS: 926120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Jan 2, 2013

Section: US

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1266075173

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon to Spend $14 Billion on Project Off Canada's East Coast

Author: Lefebvre, Ben; MacDonald, Alistair

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Jan 2013: n/a.

ProQuest document link

Abstract:

ExxonMobil Corp. will spend $14 billion to develop the Hebron oil field off the shore of eastern Canadian province Newfoundland and Labrador, a project it expects to yield 700 million barrels of oil, the company said Friday.

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ExxonMobil Corp. will spend $14 billion to develop the Hebron oil field off the shore of eastern Canadian province Newfoundland and Labrador, a project it expects to yield 700 million barrels of oil, the company said Friday.

Exxon's announcement underlines how major oil produces are returning their attention to North America after years of searching for oil in the Middle East, Africa and other regions. New drilling technology has allowed ExxonMobil, ConocoPhillips and other companies to make major discoveries in shale formations in Canada and the U.S., and those same companies are now increasingly turning their attention to fields off the continent's shores.

Exxon said production will start in 2017 and should eventually reach 150,000 barrels of oil a day. The Irving, Texas, company will own through a subsidiary a 36% share in the project, with Chevron Corp., Suncor Energy Inc., Statoil ASA and Nalcor Energy and Gas also holding stakes.

Though the U.S. hasn't allowed oil drilling off the coast of the Atlantic for decades, the Atlantic floor has proven fertile for those seeking reserves off Canada.

Earlier this year, Royal Dutch Shell PLC said it would spend $1 billion to explore Atlantic waters off the province of Nova Scotia. Around 40% of the nominal gross domestic product of Newfoundland and Labrador comes from the energy and resources sector, according to figures from the Canadian government.

"North America is beginning to look like the hottest place on Earth now, both onshore and offshore," said Oppenheimer senior energy analyst Fadel Gheit. "Eastern Canada is definitely under-explored."

The drilling will take place more than 200 miles southeast of the province's capital of St. John's, in about 300 feet of water. Exxon said it will use a stand-alone, gravity-based structure designed to withstand the sea ice that makes drilling on Canada's Atlantic coast hazardous.

The governments of Canada and of Newfoundland and Labrador approved the project in May.

Write to Ben Lefebvre at and Alistair MacDonald at

Credit: By Ben Lefebvre And Alistair MacDonald

Subject: Petroleum industry

Location: Texas Africa United States--US Newfoundland & Labrador Canada North America Middle East

Company / organization: Name: ConocoPhillips Co; NAICS: 211111; Name: Suncor Energy Inc; NAICS: 211111, 213112; Name: Chevron Corp; NAICS: 324110, 211111; Name: Nalcor Energy; NAICS: 221111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Statoil ASA; NAICS: 324110, 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Jan 4, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1266434975

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Inaccurate Statements About Exxon Mobil

Author: Anonymous

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Jan 2013: n/a.

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In his defending taxpayer subsidization of wind power, Sen. Bernie Sanders repeats his inaccurate claim that Exxon Mobil, one of the largest taxpayers in the United States, paid no federal income taxes in 2009.

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In his defending taxpayer subsidization of wind power, Sen. Bernie Sanders repeats his inaccurate claim that Exxon Mobil, one of the largest taxpayers in the United States, paid no federal income taxes in 2009.

That is not true, as we and others, including the PolitiFact truth-checking website, have told Sen. Sanders repeatedly.

He also incorrectly repeats the claim that billions in subsidies are going to the fossil fuel industry, when he's really talking about tax provisions available to all industries to support job creation and economic activity.

The fact is that Exxon Mobil is one of the largest taxpayers in the country. Over the past five years, our total U.S. tax expense was $57 billion, about $18 billion more than the company earned in the country during the same period.

Kenneth P. Cohen

Vice President

Public and Government Affairs

Exxon Mobil Corp.

Irving, Texas

Subject: Petroleum industry

Location: Texas United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Jan 4, 2013

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1266438148

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1266438148?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Inaccurate Statements About Exxon Mobil

Author: Anonymous

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]05 Jan 2013: A.14.

ProQuest document link

Abstract:

In his Jan. 3 letter defending taxpayer subsidization of wind power, Sen. Bernie Sanders repeats his inaccurate claim that Exxon Mobil, one of the largest taxpayers in the United States, paid no federal income taxes in 2009.

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In his Jan. 3 letter defending taxpayer subsidization of wind power, Sen. Bernie Sanders repeats his inaccurate claim that Exxon Mobil, one of the largest taxpayers in the United States, paid no federal income taxes in 2009.

That is not true, as we and others, including the PolitiFact truth-checking website, have told Sen. Sanders repeatedly.

He also incorrectly repeats the claim that billions in subsidies are going to the fossil fuel industry, when he's really talking about tax provisions available to all industries to support job creation and economic activity.

The fact is that Exxon Mobil is one of the largest taxpayers in the country. Over the past five years, our total U.S. tax expense was $57 billion, about $18 billion more than the company earned in the country during the same period.

Kenneth P. Cohen

Vice President

Public and Government Affairs

Exxon Mobil Corp.

Irving, Texas

Subscribe to WSJ:

Subject: Petroleum industry

Location: Texas United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.14

Publication year: 2013

Publication date: Jan 5, 2013

Section: Letters to the Editor

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1266467930

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1266467930?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon to Spend $14 Billion on Project Off Canada's East Coast

Author: Lefebvre, Ben; MacDonald, Alistair

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Jan 2013: n/a.

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ExxonMobil Corp. will spend $14 billion to develop the Hebron oil field off the shore of eastern Canadian province Newfoundland and Labrador, a project it expects to yield 700 million barrels of oil, the company said Friday.

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ExxonMobil Corp. will spend $14 billion to develop the Hebron oil field off the shore of eastern Canadian province Newfoundland and Labrador, a project it expects to yield 700 million barrels of oil, the company said Friday.

Exxon's announcement underlines how major oil produces are returning their attention to North America after years of searching for oil in the Middle East, Africa and other regions. New drilling technology has allowed ExxonMobil, ConocoPhillips and other companies to make major discoveries in shale formations in Canada and the U.S., and those same companies are now increasingly turning their attention to fields off the continent's shores.

Exxon said production will start in 2017 and should eventually reach 150,000 barrels of oil a day. The Irving, Texas, company will own through a subsidiary a 36% share in the project, with Chevron Corp., Suncor Energy Inc., Statoil ASA and Nalcor Energy and Gas also holding stakes.

Though the U.S. hasn't allowed oil drilling off the coast of the Atlantic for decades, the Atlantic floor has proven fertile for those seeking reserves off Canada.

Earlier this year, Royal Dutch Shell PLC said it would spend $1 billion to explore Atlantic waters off the province of Nova Scotia. Around 40% of the nominal gross domestic product of Newfoundland and Labrador comes from the energy and resources sector, according to figures from the Canadian government.

"North America is beginning to look like the hottest place on Earth now, both onshore and offshore," said Oppenheimer senior energy analyst Fadel Gheit. "Eastern Canada is definitely under-explored."

The drilling will take place more than 200 miles southeast of the province's capital of St. John's, in about 300 feet of water. Exxon said it will use a stand-alone, gravity-based structure designed to withstand the sea ice that makes drilling on Canada's Atlantic coast hazardous.

The governments of Canada and of Newfoundland and Labrador approved the project in May.

Write to Ben Lefebvre at and Alistair MacDonald at

Credit: By Ben Lefebvre And Alistair MacDonald

Subject: Petroleum industry

Location: Texas Africa United States--US Newfoundland & Labrador Canada North America Middle East

Company / organization: Name: ConocoPhillips Co; NAICS: 211111; Name: Suncor Energy Inc; NAICS: 211111, 213112; Name: Chevron Corp; NAICS: 324110, 211111; Name: Nalcor Energy; NAICS: 221111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Statoil ASA; NAICS: 324110, 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Jan 6, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1266630589

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1266630589?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Corporate News: Exxon Sets $14 Billion Canadian Oil Project

Author: Lefebvre, Ben; MacDonald, Alistair

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]07 Jan 2013: B.3.

ProQuest document link

Abstract:

Exxon Mobil Corp. will spend $14 billion to develop the Hebron oil field off the shore of eastern Canadian province Newfoundland and Labrador, a project it expects to yield 700 million barrels of oil, the company said Friday.

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Full text:  

Exxon Mobil Corp. will spend $14 billion to develop the Hebron oil field off the shore of eastern Canadian province Newfoundland and Labrador, a project it expects to yield 700 million barrels of oil, the company said Friday.

Exxon's announcement underlines how major oil producers are returning their attention to North America after years of searching for oil in the Middle East, Africa and other regions. New drilling technology has allowed ExxonMobil, ConocoPhillips and other companies to make major discoveries in shale formations in Canada and the U.S., and those same companies are now increasingly turning their attention to fields off the continent's shores.

Exxon said production will start in 2017 and should eventually reach 150,000 barrels of oil a day. The Irving, Texas, company will own through a subsidiary a 36% share in the project, with Chevron Corp., Suncor Energy Inc., Statoil ASA and Nalcor Energy & Gas also holding stakes.

Though the U.S. hasn't allowed oil drilling off the coast of the Atlantic for decades, the Atlantic floor has proved fertile for those seeking reserves off Canada.

Earlier this year, Royal Dutch Shell PLC said it would spend $1 billion to explore Atlantic waters off the province of Nova Scotia. Around 40% of the nominal gross domestic product of Newfoundland and Labrador comes from the energy-and-resources sector, according to figures from the Canadian government.

"North America is beginning to look like the hottest place on Earth now, both onshore and offshore," said Oppenheimer senior energy analyst Fadel Gheit. "Eastern Canada is definitely under-explored."

The drilling will take place more than 200 miles southeast of the province's capital of St. John's, in about 300 feet of water. Exxon said it will use a stand-alone, gravity-based structure designed to withstand the sea ice that makes drilling on Canada's Atlantic coast hazardous.

The governments of Canada and of Newfoundland and Labrador approved the project in May.

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Credit: By Ben Lefebvre and Alistair MacDonald

Subject: Petroleum industry; Equity stake; Offshore oil exploration & development

Location: Newfoundland & Labrador Canada

Company / organization: Name: Suncor Energy Inc; NAICS: 211111, 213112; Name: Chevron Corp; NAICS: 324110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 8510: Petroleum industry; 9172: Canada

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2013

Publication date: Jan 7, 2013

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1266699844

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1266699844?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

One Year Later, Exxon Bests Apple as World's Biggest Company

Author: Scaggs, Alexandra

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 Jan 2013: n/a.

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Abstract:

Berkshire Hathaway Inc., Wal-Mart Stores Inc., Microsoft Corp., General Electric Co. and International Business Machines Corp. round out the leaders, all coming in just north of $230 billion.

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Exxon Mobil Corp. overtook Apple Inc. in stock-market value in midday trading Friday, reclaiming the title of world's largest company.

Exactly one year after Apple passed Exxon in market capitalization and started its recent run as the most valuable company in the world, the oil giant regained the status, according to FactSet data.

Before Apple overtook Exxon in market capitalization on Jan. 25, 2012, Exxon had been the leader since 2006. But Apple had briefly overtaken Exxon at six points during 2011; in the longest spell, it had been the biggest company in the world for 18 days.

Just after 1 p.m. EST time, Exxon gained 20 cents, around 0.2%, to $91.54 a share. That left it with more than $417 billion in market value, according to FactSet. Apple declined around 2.3%, or $10.37, to $440.13 a share. That took a bite out of its market value, which slipped to about $413 billion.

The big-two companies are followed by Google Inc. at a distant third, with a market cap of $248 billion. Berkshire Hathaway Inc., Wal-Mart Stores Inc., Microsoft Corp., General Electric Co. and International Business Machines Corp. round out the leaders, all coming in just north of $230 billion.

As of the close of trading Thursday, Apple made up 3.2% of the Standard & Poor's 500-stock index, said Howard Silverblatt, senior index analyst with S&P Dow Jones Indices. A year ago, when its market value overtook Exxon's, Apple shares made up more than 5% of the closely followed index, which is weighted by market cap.

Mr. Silverblatt said the swap was hardly a guarantee Exxon that would have the lead for good.

"[Apple] is an active stock, and there's a lot of professional traders in there, so it's definitely volatile," he said.

Exxon retook the lead after an extended, long-term slide in Apple's shares: They have fallen 37% from their all-time high of $702.10 reached Sept. 19, 2012. Wednesday, an earnings report from the company struck a sour note with investors, which sparked a 12% selloff Thursday.

Meanwhile, Exxon shares have remained relatively steady over the past year, trading around $75 at the low and $90 at the high. The oil conglomerate is slated to report earnings before the start of trading Feb. 1. Analysts polled by Thomson Reuters expect it to report per-share earnings of $2.02 on $117 billion of revenue.

While the stocks are similar in size, they offer broadly different investment profiles, said David Klaskin, chief investment officer of Oak Ridge Investments LLC, which manages $3.2 billion in Chicago and owns both Apple and Exxon shares.

"If you had a five-year-old kid and said, 'I want money for college in 15 years,' Exxon's the more stable company," said Mr. Klaskin. "Apple's the more compelling company over the next two to three years because they have so much cash and they haven't really lost the innovation lead."

Matt Jarzemsky contributed to this article.

Credit: By Alexandra Scaggs

Subject: Stock prices; Acquisitions & mergers; Investments

Company / organization: Name: Microsoft Corp; NAICS: 334611, 511210; Name: Google Inc; NAICS: 519130; Name: Thomson Reuters; NAICS: 511110, 511140; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: General Electric Co; NAICS: 334512, 334518, 332510, 334290; Name: Oak Ridge Investments LLC; NAICS: 522291; Name: IBM Corp; NAICS: 334611, 511210, 334111, 334119, 334413; Name: Wal-Mart Stores Inc; NAICS: 452112, 452910; Name: Berkshire Hathaway Inc; NAICS: 335212, 442210, 445292, 511110, 511130, 524126; Name: Standard & Poors Corp; NAICS: 541519, 511120, 523999, 561450

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Jan 25, 2013

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1276611063

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1276611063?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Indonesia Blames Exxon Executive for Cepu Delay

Author: Sudrajat, Deden; Ismar, Andreas

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Jan 2013: n/a.

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Abstract:

JAKARTA--Indonesia's Cepu Block crude-oil site, operated jointly by Exxon Mobil Corp. and PT Pertamina, is likely to face delays in reaching peak production, a senior official at the regulatory body overseeing upstream oil and gas said Monday, dealing a blow to the country's ambition to boost daily output to 1 million barrels and souring government relations with the U.S. firm.

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JAKARTA--Indonesia's Cepu Block crude-oil site, operated jointly by Exxon Mobil Corp. and PT Pertamina, is likely to face delays in reaching peak production, a senior official at the regulatory body overseeing upstream oil and gas said Monday, dealing a blow to the country's ambition to boost daily output to 1 million barrels and souring government relations with the U.S. firm.

Delays for oil exploration projects at the block "may cause the block to only reach its daily peak production of 165,000 barrels in November of 2014, not in May" of 2014, Widhyawan Prawiraatmadja, deputy of planning at SKKMigas, told Dow Jones Newswires in a telephone interview.

"That's partly caused by the incompetence of the local head of Exxon Mobil...He's not cooperative in speeding up the production process. That's what makes us not interested in extending his working permit," Mr. Prawiraatmadja said, without saying whether it had already issued a formal notification rescinding the permit of Richard Owen, the Indonesian head of Exxon Mobil.

Local officials of Exxon Mobil weren't immediately available for comment.

SKKMigas, a unit of the country's ministry of energy and mineral resources tasked with overseeing the upstream oil and gas sector, said in a statement that it views "Cepu Block as the backbone to increase Indonesia's oil production going forward."

It added that BPMigas, the regulatory body it replaces, rescinded several working permits for foreign contractors in the past.

The southeast Asian nation has consistently fallen short of its production targets. In 2012, annual production averaged 865,000 barrels, below a government goal of 930,000 barrels a day.

Late last year, the then vice minister of energy and mineral resources, Rudi Rubiandini, told The Wall Street Journal that the country would likely fail to meet its 2013 crude-oil production target of 900,000 barrels a day.

President Susilo Bambang Yudhoyono is keen to overturn such a trend and pledges to boost daily crude production to 1 million barrels in 2014, when his second and final term will end.

Indonesia left the Organization of the Petroleum Exporting Countries in 2008 after becoming a net oil importer earlier in the decade. Output peaked at 1.6 million barrels a day in 1965 and again in 1976, and a lack of investment has seen the ratio of oil exploited to oil discovered fall below 100%.

I Made Sentana contributed to this article.

Write to

Credit: By Deden Sudrajat and Andreas Ismar

Subject: Petroleum production; Petroleum industry

Location: Indonesia United States--US

People: Yudhoyono, Susilo Bambang

Company / organization: Name: PT Pertamina; NAICS: 211111, 213111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Dow Jones Newswires; NAICS: 519110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Jan 28, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1282136040

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1282136040?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon Takes Zero to Hero

Author: Denning, Liam

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Jan 2013: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:  

What did Exxon Mobil's stock have to do in 2012 for it to stay the biggest listed oil company in the world? Nothing.

Exxon tops PFC Energy's latest annual ranking of energy companies by market capitalization, due out Tuesday. Yet the oil major's stock went nowhere last year. Indeed, the overall value of PFC's top 50 barely changed last year, down 0.8% to $3.5 trillion.

There may be a warning in that: Average oil prices had their best year ever in 2012. That overall valuation actually fell suggests investors are skeptical of further sustained gains--or companies' ability to keep hold of them.

The other message in the ranking concerns the battle between Western oil majors and national oil companies such as PetroChina.

The rising star of recent years has been Colombia's state-controlled Ecopetrol. Having joined the list in 2007 ranked 33rd, it is now No. 6.

But as Ecopetrol has risen, so other state-backed majors have faltered. Brazil's Petróleo Brasileiro is a prime example, having discovered vast amounts of oil but finding its cash flow and valuation hamstrung by an increasingly intrusive state. Ecopetrol overtook it this year, despite Petrobras's proved reserves being about seven times bigger.

Looking at the top 10 over time, there is a striking contrast in terms of relative stability. From 2004 onward, the value of the Western majors in each top 10 has dipped below $1 trillion dollars only once, in 2009. In that same period, the collective value of national oil companies in the top 10 started at $160 billion, soared to $1.55 trillion in 2007, and ended 2012 at less than half that peak.

Exxon, like other Western majors, may not have set pulses racing in 2012. But looking at history, there's a reason it is still No. 1.

Write to Liam Denning at

Credit: By Liam Denning

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Jan 28, 2013

column: Heard on the Street

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1282136042

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1282136042?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Refining Aids Exxon, Chevron Earnings

Author: González, Ángel; Lefebvre, Ben

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Feb 2013: n/a.

ProQuest document link

Abstract:

Exxon has sought to boost its reserves and production, especially of profitable crude oil, by buying assets in the prolific Bakken shale in North Dakota from Denbury Resources Inc. It also has formed joint ventures with heavyweights like OAO Rosneft to tap Arctic resources, but that is an effort that could take many years.

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Strength in oil refining helped propel Exxon Mobil Corp. to near-record-high earnings last year, despite lower energy output and what analysts said were tepid returns from the company's big bet on U.S. natural gas.

Chevron Corp., the second-largest U.S. oil producer by market capitalization after Exxon, also benefited from the improving environment for refiners in 2012, reporting Friday a surge in quarterly profit, though its full-year earnings edged lower.

The pair's results underscore the value of Big Oil's integrated model--encompassing both producing oil and turning it into fuel--at a time of sweeping changes in the energy industry. Companies like ConocoPhillips and Marathon Oil Corp. have spun off refining divisions that have since become extremely profitable as a glut of crude produced in Texas and North Dakota makes it cheaper to produce fuel.

Meanwhile, companies that focus purely on producing oil have had to contend with unstable prices for crude and natural gas prices amid global economic uncertainty. Last year, prices for U.S. crude oil ranged between $77.69 and $110.55 per barrel, while global prices fluctuated between $88.49 and $128.40. Natural gas futures ranged between $3.93 and $1.90 per million British thermal units.

"One of the arguments for having an integrated model is that it provides a natural hedge," said Pavel Molchanov, an analyst with Raymond James.

Exxon's fourth-quarter earnings rose 5.9% from the same period a year earlier, with refineries and chemicals providing the boost. Profit was $9.95 billion, or $2.20 a share, up from $9.4 billion, or $1.97 a share, a year earlier. Analysts polled by Thomson Reuters had most recently forecast earnings of $2 a share.

For the year, Exxon posted a profit of $44.8 billion, second only to the record-breaking $45.2 billion in 2008, a year in which oil prices soared above $145 a barrel. In 2012, the company was helped by a big divestiture in Japan, and by rising supplies of cheap U.S. oil and natural gas unlocked by hydraulic fracturing. That abundance, while undermining revenue from oil and gas sales, padded profits from the Texas oil giant's fuel-making and petrochemical operations.

The company became the largest natural gas producer in the U.S. after it bought XTO Energy Inc. for $25 billion in 2010, a bet that many analysts say has dented the company's returns.

Chevron's fourth-quarter earnings rose 41% to $7.25 billion mainly due to gains from an asset swap and strength in refining. Its full-year profit was $26.2 billion, off slightly from 2011's $26.9 billion.

Tom Fowler contributed to this article.

Write to Ángel González at and Ben Lefebvre at

Credit: By Ángel González and Ben Lefebvre

Subject: Acquisitions & mergers; Petroleum industry

Location: Arctic region North Dakota

Company / organization: Name: Denbury Resources Inc; NAICS: 211111; Name: Thomson Reuters; NAICS: 511110, 511140; Name: OAO Rosneft; NAICS: 324110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Feb 1, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1283317961

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1283317961?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon, Chevron Receive Big Boost From Refining

Author: Gonzalez, Angel; Lefebvre, Ben

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]02 Feb 2013: B.1.

ProQuest document link

Abstract:

Strength in oil refining helped propel Exxon Mobil Corp. to near-record-high earnings last year, despite lower energy output and what analysts said were tepid returns from the company's big bet on U.S. natural gas.

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Strength in oil refining helped propel Exxon Mobil Corp. to near-record-high earnings last year, despite lower energy output and what analysts said were tepid returns from the company's big bet on U.S. natural gas.

For the year, Exxon posted a profit of $44.8 billion, second only to the record-breaking $45.2 billion in 2008, a year in which oil prices soared above $145 a barrel.

In 2012, the company was helped by a big divestiture in Japan, and by rising supplies of cheap U.S. oil and natural gas unlocked by hydraulic fracturing.

That abundance, while undermining revenue from oil and gas sales, padded profits from the Texas oil giant's fuel-making and petrochemical operations.

Chevron Corp., the second-largest U.S. oil producer by market capitalization after Exxon, also benefited from the improving environment for refiners in 2012, reporting Friday a surge in quarterly profit, though its full-year earnings edged lower.

The pair's results underscore the value of Big Oil's integrated model -- encompassing both producing oil and turning it into fuel -- at a time of sweeping changes in the energy industry.

Companies such as ConocoPhillips and Marathon Oil Corp. have spun off refining divisions that have since become extremely profitable as a glut of crude produced in Texas and North Dakota makes it cheaper to produce fuel.

Meanwhile, companies that focus purely on producing oil have had to contend with unstable prices for crude and natural gas prices amid global economic uncertainty. Last year, prices for U.S. crude oil ranged between $77.69 and $110.55 per barrel, while global prices fluctuated between $88.49 and $128.40. Natural gas futures ranged between $3.93 and $1.90 per million British thermal units.

"One of the arguments for having an integrated model is that it provides a natural hedge," said Pavel Molchanov, an analyst with Raymond James.

Exxon's fourth-quarter earnings rose 5.9% from the same period a year earlier, with refineries and chemicals providing the boost. Profit was $9.95 billion, or $2.20 a share, up from $9.4 billion, or $1.97 a share, a year earlier.

Analysts polled by Thomson Reuters had most recently forecast earnings of $2 a share.

The company became the largest natural gas producer in the U.S. after it bought XTO Energy Inc. for $25 billion in 2010, a bet that many analysts say has dented the company's returns.

Chevron's fourth-quarter earnings rose 41% to $7.25 billion mainly due to gains from an asset swap and strength in refining. Its full-year profit was $26.2 billion, off slightly from 2011's $26.9 billion.

---

Tom Fowler contributed to this article.

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Credit: By Angel Gonzalez and Ben Lefebvre

Subject: Financial performance; Corporate profits; Petroleum refining

Location: United States--US

Company / organization: Name: Chevron Corp; NAICS: 324110, 211111; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 3400: Investment analysis & personal finance; 8510: Petroleum industry; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2013

Publication date: Feb 2, 2013

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1283628397

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Rosneft, Exxon Mobil Broaden Arctic Shelf Joint Venture

Author: Marson, James

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Feb 2013: n/a.

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Abstract: None available.

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NOVO-OGARYOVO, Russia--Major U.S. energy company Exxon Mobil Corp. and Russia's OAO Rosneft agreed Wednesday to broaden their joint venture by adding seven more licenses to develop oil and gas resources on Russia's Arctic shelf and to mull a proposal to export liquefied natural gas from the Russian Far East.

The companies also signed a separate deal to give state-controlled Rosneft the option of buying a 25% interest in Exxon's Point Thomson Project, which Exxon says is estimated to hold a quarter of the known natural-gas resources buried beneath Alaska's North Slope. Exxon owns 62.5% of Point Thomson.

The deal, signed by Rosneft Chief Executive Igor Sechin and Exxon's Deputy Chief Executive Stephen Greenlee, further strengthens the budding relationship between two of the world's largest oil companies, while competition to unlock the Arctic's vast trove of oil and gas wealth heats up.

The Arctic is one of the few places that can move the needle for oil companies in terms of production and reserves, but the technical challenges are formidable. Earlier this week Royal Dutch Shell PLC said it was sending two Arctic ships operating in Alaska to Asia for repairs following a series of mishaps, a move that is likely to make the Anglo-Dutch oil company miss the short summer drilling season that starts in July.

Exxon and Rosneft formed an alliance in 2011 to develop potentially huge but largely untapped reserves on Russia's Arctic shelf and shale oil in Western Siberia. The original deal also gave Rosneft the option of participating in U.S. shale developments.

Fadel Gheit, an analyst with Oppenheimer & Co., said Exxon's strategy to allow Russian participation shows that the most successful way to negotiate with Russian oil companies is to deal with them as equal partners. "They want to make it a two-way street," Mr. Gheit said.

Rosneft also has partnership deals with Italy's ENI SpA and Norway's Statoil ASA to develop offshore resources.

Rosneft is currently buying competitor TNK-BP in a deal worth $55 billion that will create the largest listed oil producer in the world and will hand BP PLC a 19.8% stake in the merged company.

Exxon and Rosneft will conduct a feasibility study on constructing a liquefied natural gas plant on the island of Sakhalin off Russia's Pacific coast. Rosneft is lobbying to be allowed to export LNG, which only OAO Gazprom currently is permitted to do by law.

Ángel González contributed to this article.

Write to James Marson at

Credit: By James Marson

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Feb 13, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1287117600

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Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Added More to Reserves Than It Produced

Author: González, Ángel; Stynes, Tess

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Feb 2013: n/a.

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Abstract: None available.

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Exxon Mobil Corp. added slightly more oil and gas to its reserves than it produced in 2012, with most of the new reserves coming from oil-rich assets in North America.

The world's largest publicly traded oil company said Tuesday it added proven reserves totaling 1.8 billion oil-equivalent barrels, of which 1.4 billion barrels consisted of petroleum and other liquids, a sign that Exxon has been emphasizing oil exploration at the expense of its less profitable natural-gas business.

Also, Exxon said it added more than 750 million oil-equivalent barrels from the Woodford and Bakken shale areas in North Dakota, which are among the fastest-growing oil fields in the world. About 600 million barrels of oil equivalent came from additions in Alberta and off the shore of Canada.

The fact that most of Exxon's newfound energy comes from unconventional assets in North America underscores how the technological unleashing of massive resources from U.S. shale to Canada's oil sands has prompted global giants to shift their attention away from riskier overseas prospects.

Exxon has been criticized for its 2010 purchase of XTO Energy Inc., which made it the largest natural-gas producer in the U.S. at a time when prices for the commodity plummeted amid a market glut.

At the end of last year, the majority of Exxon's reserves shifted to liquids at 51%, up two percentage points. Natural gas, as a percentage of the company's reserves, was down at 49%, as Exxon replaced less natural gas than it produced.

Exxon added back as new reserves about 115% of the oil and gas it produced; the company said 2012 was the 19th year in a row that it replaced the totality of its production. Excluding the impact of asset sales, reserve additions last year replaced 124% of output. Exxon's reserves at the end of 2012 totaled 25.2 billion barrels of oil equivalent, up from 24.9 billion at year-end 2011.

Adding new reserves in sufficient quantity is a major challenge for the biggest oil companies, which produce prodigious amounts of energy and need to find rare prospects that are big enough to make a difference in their portfolio. Exxon's reserve replacement was the best among its peers, followed by Chevron Corp. with 112% and by Total SA with 93%, say analysts with UBS.

Write to Tess Stynes at

Credit: By Ángel González And Tess Stynes

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Feb 19, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1288821116

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Last updated: 2017-11-20

Database: The Wall Street Journal

Corporate News: Exxon Reserves Topped Output

Author: Gonzalez, Angel; Stynes, Tess

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]20 Feb 2013: B.4.

ProQuest document link

Abstract:

The world's largest publicly traded oil company said Tuesday it added proven reserves totaling 1.8 billion oil-equivalent barrels, of which 1.4 billion barrels consisted of petroleum and other liquids, a sign that Exxon has been emphasizing oil exploration at the expense of its less profitable natural-gas business.

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Full text:  

Exxon Mobil Corp. added slightly more oil and gas to its reserves than it produced in 2012, with most of the new reserves coming from oil-rich assets in North America.

The world's largest publicly traded oil company said Tuesday it added proven reserves totaling 1.8 billion oil-equivalent barrels, of which 1.4 billion barrels consisted of petroleum and other liquids, a sign that Exxon has been emphasizing oil exploration at the expense of its less profitable natural-gas business.

Also, Exxon said it added more than 750 million oil-equivalent barrels from the Woodford and Bakken shale areas in North Dakota, which are among the fastest-growing oil fields in the world.

About 600 million barrels of oil equivalent came from additions in Alberta and off the shore of Canada.

The fact that most of Exxon's newfound energy comes from unconventional assets in North America underscores how the technological unleashing of massive resources from U.S. shale to Canada's oil sands has prompted global giants to shift their attention away from riskier overseas prospects.

Exxon has been criticized for its 2010 purchase of XTO Energy Inc., which made it the largest natural-gas producer in the U.S. at a time when prices for the commodity plummeted amid a market glut.

At the end of last year, the majority of Exxon's reserves shifted to liquids at 51%, up two percentage points. Natural gas, as a percentage of the company's reserves, was down at 49%, as Exxon replaced less natural gas than it produced.

Exxon added back as new reserves about 115% of the oil and gas it produced; the company said 2012 was the 19th year in a row that it replaced the totality of its production.

Excluding the impact of asset sales, the company said reserve additions last year replaced 124% of output.

Exxon's reserves at the end of 2012 totaled 25.2 billion barrels of oil equivalent, up from 24.9 billion at year-end 2011.

Exxon in 2012 produced about 4.24 million barrels of oil equivalent per day on average, or about 1.55 billion barrels of oil equivalent for the whole year.

Adding new reserves in sufficient quantity is a major challenge for the biggest oil companies, which produce prodigious amounts of energy and need to find rare prospects that are big enough to make a difference in their portfolio.

Exxon's reserve replacement was the best among its peers, followed by Chevron Corp. with 112% and by Total SA with 93%, say analysts with UBS.

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Credit: By Angel Gonzalez and Tess Stynes

Subject: Oil reserves; Natural gas reserves

Location: North America

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 8510: Petroleum industry; 9180: International

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.4

Publication year: 2013

Publication date: Feb 20, 2013

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1288976623

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Court Reverses Over $1 Billion in Damages Against Exxon

Author: Tracy, Tennille

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Feb 2013: n/a.

ProQuest document link

Abstract:

The case stems back to February 2006, when 26,000 gallons of gasoline leaked from underground storage tanks owned by Exxon Mobil at a fueling station in Jacksonville, Md. The gasoline moved into a water aquifer that supplied drinking water to many residents.

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WASHINGTON--Exxon Mobil Corp. has won a legal victory in its effort to fight damages of about $1.5 billion stemming from a 2006 gasoline spill in Maryland.

In a decision released Tuesday, the Maryland Court of Appeals reversed more than $1 billion in punitive damages, awarded by a jury in 2011, and said residents and business who accused the energy giant of fraud hadn't sufficiently proven their case.

The court also reversed a large number of compensatory damages, which originally totaled about $500 million.

The case stems back to February 2006, when 26,000 gallons of gasoline leaked from underground storage tanks owned by Exxon Mobil at a fueling station in Jacksonville, Md. The gasoline moved into a water aquifer that supplied drinking water to many residents.

Dozens of residents and business owners filed suit and accused Exxon Mobil of fraud. They also said they suffered because of concerns over contracting cancer and losing value on their properties.

In 2011, a jury at the Circuit Court for Baltimore County awarded the residents and business owners about $500 million in compensatory damages and $1 billion in punitive damages.

Exxon said the company is reviewing the court's decision.

"The evidence showed that we acted appropriately after the accident and the court has agreed," the company said, adding that it has apologized to the Jacksonville community and remains "ready to compensate those who were truly damaged by this unfortunate incident."

Write to Tennille Tracy at

Credit: By Tennille Tracy

Subject: Litigation; Federal court decisions; State court decisions

Location: Maryland Baltimore County Maryland

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Feb 27, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1312725943

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1312725943?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon in Need of a Deal

Author: Denning, Liam

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Mar 2013: n/a.

ProQuest document link

Abstract:

Chevron's projected growth is 2.7% a year. [...]North America remains a large component of Rystad's projection for Exxon. In a recent report, Paul Sankey, an analyst at Deutsche Bank, wrote that after merging with Mobil, Exxon's "conservative, long-term planning" led it to believe that oil prices would stay relatively low, the U.S. would need rising oil and gas imports and Asia would be the center of petrochemicals supply growth.

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For once, Exxon Mobil could use a lower oil price.

While this would hurt profits, it would cut the price of acquisition targets. And Exxon, due to host its annual analyst meeting Wednesday, may soon need a big deal.

Exxon's cash flow remains enviable, but its lead has slipped. Return on average capital employed--a metric championed on Wall Street by Exxon--in the main exploration and production division fell more than five percentage points in 2012 to 21.4%. In recent years, rival Chevron has been closing the gap.

Gas is the main culprit. In late 2009, Exxon announced a $41 billion all-stock deal to acquire XTO Energy, a shale-gas pioneer. The subsequent collapse in gas prices has sapped Exxon's profit and weighed on its stock price.

But besides being a long-term bet on gas, buying XTO helped address Exxon's main challenge: replacing the huge amounts of oil and gas it produces. Oil firms must replace at least 100% of production every year to avoid shrinking, and more if they aim for sustainable growth. Absent XTO, in 2010 Exxon's reserve-replacement ratio would have been just 61%. But reserves bought from someone else at a premium are usually less profitable than those found in-house.

Overall, Exxon replaced 106% of production organically over the past decade and 120% including acquisitions and disposals. Neither level is adequate to increase output sustainably. At the end of 2002, Exxon's ratio of proved reserves to production was 13.6 times. To hold that steady while increeasing output at just 2% a year would need reserve replacement of 127%.

Exxon's output in 2012 was only slightly higher than in 2003, and half of it was gas, up from 43%. Exxon actually ended 2012 with less proved oil reserves than in 2003. It has become more of a gas major in a decade when oil prices have soared and U.S. gas prices have tanked.

Data from oil-and-gas consultant Rystad Energy suggest a similar outlook. While new projects should see volumes start growing after 2014, Exxon's average growth out to 2020 is projected to be just 0.6% a year. By then, Rystad expects it to produce around 4.4 million barrels of oil equivalent per day--similar to 2010's level. Chevron's projected growth is 2.7% a year.

Moreover, North America remains a large component of Rystad's projection for Exxon. This region's prominence is troubling because of low gas prices there. While these could rise in the years to come, Exxon's strategy of expanding its shale resources and pushing down development costs actually works against this.

Chevron's output is less gas-heavy and much of its forecast growth is weighted to areas like Asia-Pacific with greater exposure to higher global oil and oil-linked prices.

Finding more oil and gas itself would help Exxon. This is a key area to watch and will likely be much discussed on Wednesday. Exxon has boosted exploration spending since 2008 and shown promising results in areas such as offshore Romania and Tanzania.

Yet several Exxon watchers express skepticism. Steve Coll, author of "Private Empire: Exxon Mobil and American Power," says Exxon's conservative culture doesn't fit with exploration's "hunting mentality." In his book, he writes that the 1999 merger with Mobil was done in part to incorporate its more-adventurous holdings in places like Kazakhstan and Qatar into Exxon's "more conservative profile."

In a recent report, Paul Sankey, an analyst at Deutsche Bank, wrote that after merging with Mobil, Exxon's "conservative, long-term planning" led it to believe that oil prices would stay relatively low, the U.S. would need rising oil and gas imports and Asia would be the center of petrochemicals supply growth. While "defensible," Mr. Sankey wrote, "that was wrong on every count."

Exxon has missed out on exploration hot spots, notably offshore Brazil.

Its recent push into Russia and Kurdish Iraq look designed to make up for this. But both are politically risky, long-term prospects.

That Exxon's stock, at 11.3 times 2013 earnings, still commands a 20% premium to Chevron's in part reflects support from a stream of stock buybacks, $21 billion last year alone. These create demand for Exxon's stock and, by cutting the share count, mean it can show output and reserves growth on a per-share basis.

But while this financial engineering helps, it is still a strategy of shrinkage. Exxon ultimately needs real underlying growth. So barring some huge discoveries, it may soon consider another deal.

It is hard to move the needle when you are this big. But one possible target is Anadarko Petroleum. At 2.6 billion barrels of oil equivalent, proved reserves are about one-tenth those of Exxon. But Anadarko is in areas with huge potential, such as Mozambique, the deepwater Gulf of Mexico and high-quality U.S. shale areas. These would fit with and diversify Exxon's portfolio and play to its main skill of developing large, complex projects.

Yet while Anadarko's market capitalization of $40 billion is only one-tenth that of Exxon's, its price/earnings multiple of 20 times looks expensive already, even before any takeover premium.

This is where lower oil prices could help. As its resilience in the financial crisis showed, Exxon's own stock likely wouldn't suffer much. Indeed, when it said it was buying XTO in late 2009, some asked why it didn't move a bit earlier when the target's stock was much cheaper.

Dividing the exploration-and-production index by Exxon's stock price, it takes about 4.5 shares of Exxon to match the index's level. This provides a rough way of tracking how the oil major's value has moved relative to the E&P sector historically. Today's ratio is roughly where it was at the time of the XTO announcement. Exxon's buying power, at least for all-stock deals, was arguably highest between September 2008 and July 2009, when the ratio fell below four and even three very briefly.

If oil could help that ratio slide lower again, Exxon could buy its way to growth.

Write to Liam Denning at

Credit: By Liam Denning

Subject: Oil reserves; Petroleum industry; Acquisitions & mergers; Prices

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: XTO Energy Inc; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Mar 3, 2013

column: Heard on the Street

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1314238076

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1314238076?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon In Need Of a Deal

Author: Denning, Liam

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]04 Mar 2013: C.1.

ProQuest document link

Abstract:

Chevron's projected growth is 2.7% a year. [...]North America remains a large component of Rystad's projection for Exxon. In a recent report, Paul Sankey, an analyst at Deutsche Bank, wrote that after merging with Mobil, Exxon's "conservative, long-term planning" led it to believe that oil prices would stay relatively low, the U.S. would need rising oil and gas imports and Asia would be the center of petrochemicals supply growth.

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Full text:  

[Financial Analysis and Commentary]

For once, Exxon Mobil could use a lower oil price.

While this would hurt profits, it would cut the price of acquisition targets. And Exxon, due to host its annual analyst meeting Wednesday, may soon need a big deal.

Exxon's cash flow remains enviable, but its lead has slipped. Return on average capital employed -- a metric championed on Wall Street by Exxon -- in the main exploration and production division fell more than five percentage points in 2012 to 21.4%. In recent years, rival Chevron has been closing the gap.

Gas is the main culprit. In late 2009, Exxon announced a $41 billion all-stock deal to acquire XTO Energy, a shale-gas pioneer. The subsequent collapse in gas prices has sapped Exxon's profit and weighed on its stock price.

But besides being a long-term bet on gas, buying XTO helped address Exxon's main challenge: replacing the huge amounts of oil and gas it produces. Oil firms must replace at least 100% of production every year to avoid shrinking, and more if they aim for sustainable growth. Absent XTO, in 2010 Exxon's reserve-replacement ratio would have been 61%. But reserves bought from someone else at a premium are usually less profitable than those in-house.

Overall, Exxon replaced 106% of production organically over the past decade and 120% including acquisitions and disposals. Neither level is adequate to increase output sustainably. At the end of 2002, Exxon's ratio of proved reserves to production was 13.6 times. To hold that steady while increasing output at just 2% a year would need reserve replacement of 127%.

Exxon's output in 2012 was only slightly higher than in 2003, and half of it was gas, up from 43%. Exxon actually ended 2012 with less proved oil reserves than in 2003. It has become more of a gas major in a decade when oil prices have soared and U.S. gas prices have tanked.

Data from oil-and-gas consultant Rystad Energy suggest a similar outlook. While new projects should see volumes start growing after 2014, Exxon's average growth out to 2020 is projected to be just 0.6% a year. By then, Rystad expects it to produce around 4.4 million barrels of oil equivalent per day -- similar to 2010's level. Chevron's projected growth is 2.7% a year.

Moreover, North America remains a large component of Rystad's projection for Exxon. This region's prominence is troubling because of low gas prices there. While these could rise in the years to come, Exxon's strategy of expanding its shale resources and pushing down development costs actually works against this.

Chevron's output is less gas-heavy and much of its forecast growth is weighted to areas like Asia-Pacific with greater exposure to higher global oil and oil-linked prices.

Finding more oil and gas itself would help Exxon. This is a key area to watch and will likely be much discussed on Wednesday. Exxon has boosted exploration spending since 2008 and shown promising results in areas such as offshore Romania and Tanzania.

Yet several Exxon watchers express skepticism. Steve Coll, author of "Private Empire: Exxon Mobil and American Power," says Exxon's conservative culture doesn't fit with exploration's "hunting mentality." In his book, he writes that the 1999 merger with Mobil was done in part to incorporate its more-adventurous holdings in places like Kazakhstan and Qatar into Exxon's "more conservative profile."

In a recent report, Paul Sankey, an analyst at Deutsche Bank, wrote that after merging with Mobil, Exxon's "conservative, long-term planning" led it to believe that oil prices would stay relatively low, the U.S. would need rising oil and gas imports and Asia would be the center of petrochemicals supply growth. While "defensible," Mr. Sankey wrote, "that was wrong on every count."

Exxon has missed out on exploration hot spots, notably offshore Brazil. Its recent push into Russia and Kurdish Iraq look designed to make up for this. But both are politically risky, long-term prospects.

That Exxon's stock, at 11.3 times 2013 earnings, still commands a 20% premium to Chevron's in part reflects support from a stream of stock buybacks. That creates demand for Exxon's stock and, by cutting the share count, mean it can show output and reserves growth on a per-share basis.

But while this financial engineering helps, it is still a strategy of shrinkage. Exxon ultimately needs real underlying growth. So barring some huge discoveries, it may soon consider another deal.

One possible target is Anadarko Petroleum. At 2.6 billion barrels of oil equivalent, proved reserves are about one-tenth those of Exxon. But Anadarko is in areas with huge potential, such as Mozambique, the deepwater Gulf of Mexico and high-quality U.S. shale areas. These would fit with and diversify Exxon's portfolio and play to its main skill of developing large, complex projects.

Yet while Anadarko's market capitalization of $40 billion is only one-tenth that of Exxon's, its price/earnings multiple of 20 times looks expensive already, even before any takeover premium.

This is where lower oil prices could help. As its resilience in the financial crisis showed, Exxon's own stock likely wouldn't suffer much.

Dividing the exploration-and-production index by Exxon's stock price, it takes about 4.5 shares of Exxon to match the index's level. This provides a rough way of tracking how the oil major's value has moved relative to the E&P sector historically. Today's ratio is roughly where it was at the time of the XTO announcement. Exxon's buying power, at least for all-stock deals, was arguably highest between September 2008 and July 2009, when the ratio fell below four and even three very briefly.

If oil could help that ratio slide lower again, Exxon could buy its way to growth.

Subscribe to WSJ:

View Image - Enlarge this image.

Credit: By Liam Denning

Subject: Oil reserves; Petroleum industry; Acquisitions & mergers; Prices

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: XTO Energy Inc; NAICS: 211111

Classification: 2330: Acquisitions & mergers; 3100: Capital & debt management; 3400: Investment analysis & personal finance; 8510: Petroleum industry; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: C.1

Publication year: 2013

Publication date: Mar 4, 2013

column: Heard on the Street

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1314302752

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1314302752?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon to Invest $190 Billion Upstream Over Five Years

Author: Fowler, Tom

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Mar 2013: n/a.

ProQuest document link

Abstract:

Mr. Tillerson declined to handicap the chances that a cross-border section of TransCanada Corp.'s Keystone XL pipeline would be approved by the U.S. State Department, but Senior Vice President of Downstream Mike Dolan said the company is prepared to find other ways of getting its growing Canadian oil-sands production to market.

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Exxon Mobil Corp. will increase its annual spending on energy projects by $1 billion, Chairman and CEO Rex Tillerson said at the company's annual analyst meeting Wednesday in New York.

The increase will bring capital spending levels to about $190 billion over the next five years, or $38 billion per year, a new record for the oil giant.

"I never would have dreamed I'd be spending at this level," Mr. Tillerson said.

Mr. Tillerson said the company's production of oil and other liquids is expected to increase by an average of 4% per year from 2013 through 2017 as Exxon starts production at 28 major oil and gas projects, 24 of which are heavy in liquids. New production startups in the next five years will total about one million oil-equivalent barrels, Mr. Tillerson said.

His emphasis on oil production over natural gas reflects the low natural-gas prices that have hit North America in the past few years. The company has been criticized by investors for its 2010 purchase of XTO Energy Inc., which made it the largest natural-gas producer in the U.S. just before prices plummeted due to overproduction.

As much as 51.4% of Exxon's production came from natural gas in the first quarter of 2012, but that percentage dropped to 48.7% in the fourth quarter as the company has focused its exploration and production on oil finds.

The company announced earlier this week it would start a multibillion dollar expansion of its Baytown, Texas, refinery and chemical plant aimed at taking advantage of the surge in U.S. natural gas. The company will add capacity to convert ethylene, which is a component of natural gas, into polyethylene, a building block for many other products.

During question and answer sessions with analysts and reporters, Mr. Tillerson acknowledged he wasn't satisfied with the company's earnings per barrel of oil produced in 2012. Exxon's upstream earnings per barrel was $19.27 last year, after averaging $18.33 over the last five years.

But he explained the company constantly tries to address shortcomings on projects, be they technical constraints or unfavorable financial terms with governments.

He declined to name specific projects by name, but Mr. Tillerson said the company was "fully cognizant" that major projects and acquisitions would be challenging before they were done, including the XTO acquisition and Exxon's participation in Iraq's post-war oil industry.

Analysts consider the Iraqi contracts less lucrative than many other opportunities around the world, but the massive potential of Iraq's oil reserves has made Exxon and other Western firms willing to take a risk.

"They were strategic [investments] based on our long term view of what is happening around the world with the resource," Mr. Tillerson said.

Dow Jones and other news organizations have reported that Exxon officials have met with officials in the semiautonomous Kurdish region of Iraq about exploration and production projects in that area, projects that the Iraqi central government prohibits. Iraqi officials have said Exxon wouldn't be allowed to continue its work on the West Qurna project in southern Iraq if it chose to work in Kurdistan.

Mr. Tillerson said he couldn't comment on the company's plans in Kurdistan.

Mr. Tillerson declined to handicap the chances that a cross-border section of TransCanada Corp.'s Keystone XL pipeline would be approved by the U.S. State Department, but Senior Vice President of Downstream Mike Dolan said the company is prepared to find other ways of getting its growing Canadian oil-sands production to market.

"It would be difficult if it didn't come to pass," Mr. Dolan said of the pipeline project, but Exxon has started to develop contingency plans, including moving crude via barge, with an expanded fleet of railroad tank cars.

Melodie Warner contributed to this article.

Write to Tom Fowler at

Credit: By Tom Fowler

Subject: Natural gas; Petroleum industry; Acquisitions & mergers; Energy economics; Capital expenditures; Petroleum production

Location: United States--US New York

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Mar 6, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1314776450

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1314776450?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Overheard: Exxon's a Gas

Author: Anonymous

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]07 Mar 2013: C.10.

ProQuest document link

Abstract:

[...]familiar is this backhanded compliment from the Texan that Deutsche Bank analyst Paul Sankey kicked off his premeeting report predicting it would make an appearance.

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[Financial Analysis and Commentary]

Well folks, he's just flown in from Dallas, and, boy, are his jokes tired.

Kicking off Exxon Mobil's annual analyst day in New York on Wednesday, CEO Rex Tillerson cracked his usual joke about how nice it is to be in the Big Apple -- "to visit." Exxon moved its headquarters from Manhattan to Texas back in the 1980s. So familiar is this backhanded compliment from the Texan that Deutsche Bank analyst Paul Sankey kicked off his premeeting report predicting it would make an appearance.

Then, given Exxon usually holds its meeting in March, there was a standard quip about the cold. Although Mr. Tillerson added that there was nothing wrong with such weather, this was possibly a sly reference to how it helps prop up natural-gas prices. For Exxon, that is black comedy, given its 2010 purchase of shale-gas pioneer XTO Energy hasn't been a crowd pleaser.

Then again, making tasteful jokes about gas is never easy.

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Subject: Petroleum industry

Location: Texas Dallas Texas New York

People: Tillerson, Rex W

Company / organization: Name: XTO Energy Inc; NAICS: 211111; Name: Deutsche Bank AG; NAICS: 522110, 551111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: C.10

Publication year: 2013

Publication date: Mar 7, 2013

column: Heard on the Street

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1314884322

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

The Big Challenge Beneath Exxon Mobil's Big Buybacks

Author: Denning, Liam

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Mar 2013: n/a.

ProQuest document link

Abstract:

[...]by reducing the share count, they ensure each remaining share owns a bigger slice of Exxon's assets. [...]implied returns on stock repurchased around the oil-price peak are very low. [...]the implied gain to date on stock bought since the XTO Energy deal was announced--since which Exxon's shares have struggled--is just 14%.

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How does Exxon Mobil grow? By shrinking.

Exxon tends to go big or go home, and its stock buybacks are no exception. Over the past decade, the oil major's stock repurchases have totaled $207 billion--bigger than the market capitalization of all but 11 members of the S&P 500.

That is impressive but also a sign of headaches for Big Oil.

Exxon's buybacks reflect an embarrassment of riches. Free cash flow after capital expenditure has averaged $26 billion a year over the past decade, according to S&P Capital IQ. Despite 2012's 21% increase, Exxon pays a relatively low dividend. Its stock yields just 2.6% against Chevron's 3% and Royal Dutch Shell's 5.3%. But its buybacks--$21 billion last year--dwarf those of its rivals.

Buybacks provide a currency for acquisitions and support Exxon's valuation in two ways: First, they create demand for the stock. Second, by reducing the share count, they ensure each remaining share owns a bigger slice of Exxon's assets.

Yet it is the latter point where concerns begin. Exxon's impressive per-share performance also serves to emphasize underlying challenges. For example, production per share increased 48% between 2003 and 2012. But in absolute terms, it rose less than 1%.

The strain was evident at Exxon's analyst day last week. It reset its overall production-growth guidance to 2% to 3% a year. That is good, but it comes off a lower base, given that output fell 5.7% in 2012. And the guidance excludes the impact of any future divestments.

Given the company's recent big increase in capital expenditure, Exxon is funding its buyback program partly through assets sales. But these reduce production, putting those growth targets at risk.

Exxon has struggled to square this circle in the past. Deutsche Bank analyst Paul Sankey says that the firm last hit its annual production target in 2006. Looking ahead, it is hard to see the current run-rate of buybacks and growth targets both holding up.

And money spent buying one's own stock isn't invested in other, producing assets. Companies can argue that their stock is undervalued, so buying it represents a good bet. But that is harder to say in Exxon's case. Its stock already trades at a big premium to its peers. And its buybacks have been pro-cyclical, peaking in intensity in 2008, just as oil prices hit an all-time high.

This has implications for the return on that investment. Looking at rolling three-year returns--excluding dividends--Exxon made big gains on stock bought before 2006, as the shares began catching up with rising oil prices. But implied returns on stock repurchased around the oil-price peak are very low. Moreover, the implied gain to date on stock bought since the XTO Energy deal was announced--since which Exxon's shares have struggled--is just 14%.

Buybacks symbolize Exxon's many strengths. But they also emphasize its great challenge: finding suitably sized investments offering high rates of return. This is hampered in places such as Iraq by resource nationalism. It is hampered in North America by an unforeseen shale revolution and the highly priced XTO deal.

If Exxon could have a do-over, it might have redirected more of that cash spent on buybacks toward capital expenditure and acquisitions. Instead, it seems Exxon didn't really buy into the notion of rising energy prices. Today, spending huge amounts, it is of necessity a believer. But it is paying the price for its earlier lack of faith.

Write to Liam Denning at

Credit: By Liam Denning

Subject: Rates of return; Prices; Capital expenditures; Petroleum industry

Company / organization: Name: Standard & Poors Corp; NAICS: 541519, 511120, 523999, 561450; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: XTO Energy Inc; NAICS: 211111; Name: Deutsche Bank AG; NAICS: 522110, 551111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Mar 10, 2013

column: Heard on the Street

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1315454279

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1315454279?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

The Big Challenge Beneath Exxon Mobil's Big Buybacks

Author: Denning, Liam

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]11 Mar 2013: C.6.

ProQuest document link

Abstract:

[...]by reducing the share count, they ensure each remaining share owns a bigger slice of Exxon's assets. [...]implied returns on stock repurchased around the oil-price peak are very low. [...]the implied gain to date on stock bought since the XTO Energy deal was announced -- since which Exxon's shares have struggled -- is just 14%.

Links: 360 Link to Full Text

Full text:  

[Financial Analysis and Commentary]

How does Exxon Mobil grow? By shrinking.

Exxon tends to go big or go home, and its stock buybacks are no exception. Over the past decade, the oil major's stock repurchases have totaled $207 billion -- bigger than the market capitalization of all but 11 members of the S&P 500.

That is impressive but also a sign of headaches for Big Oil.

Exxon's buybacks reflect an embarrassment of riches. Free cash flow after capital expenditure has averaged $26 billion a year over the past decade, according to S&P Capital IQ. Despite 2012's 21% increase, Exxon pays a relatively low dividend. Its stock yields just 2.6% against Chevron's 3% and Royal Dutch Shell's 5.3%. But its buybacks -- $21 billion last year -- dwarf those of its rivals.

Buybacks provide a currency for acquisitions and support Exxon's valuation in two ways: First, they create demand for the stock. Second, by reducing the share count, they ensure each remaining share owns a bigger slice of Exxon's assets.

Yet it is the latter point where concerns begin. Exxon's impressive per-share performance also serves to emphasize underlying challenges. For example, production per share increased 48% between 2003 and 2012. But in absolute terms, it rose less than 1%.

The strain was evident at Exxon's analyst day last week. It reset its overall production-growth guidance to 2% to 3% a year. That is good, but it comes off a lower base, given that output fell 5.7% in 2012. And the guidance excludes the impact of any future divestments.

Given the company's recent big increase in capital expenditure, Exxon is funding its buyback program partly through assets sales. But these reduce production, putting those growth targets at risk.

Exxon has struggled to square this circle in the past. Deutsche Bank analyst Paul Sankey says that the firm last hit its annual production target in 2006. Looking ahead, it is hard to see the current run-rate of buybacks and growth targets both holding up.

And money spent buying one's own stock isn't invested in other, producing assets. Companies can argue that their stock is undervalued, so buying it represents a good bet. But that is harder to say in Exxon's case. Its stock already trades at a big premium to its peers. And its buybacks have been pro-cyclical, peaking in intensity in 2008, just as oil prices hit an all-time high.

This has implications for the return on that investment. Looking at rolling three-year returns -- excluding dividends -- Exxon made big gains on stock bought before 2006, as the shares began catching up with rising oil prices. But implied returns on stock repurchased around the oil-price peak are very low. Moreover, the implied gain to date on stock bought since the XTO Energy deal was announced -- since which Exxon's shares have struggled -- is just 14%.

Buybacks symbolize Exxon's many strengths. But they also emphasize its great challenge: finding suitably sized investments offering high rates of return. This is hampered in places such as Iraq by resource nationalism. It is hampered in North America by an unforeseen shale revolution and the highly priced XTO deal.

If Exxon could have a do-over, it might have redirected more of that cash spent on buybacks toward capital expenditure and acquisitions. Instead, it seems Exxon didn't really buy into the notion of rising energy prices. Today, spending huge amounts, it is of necessity a believer. But it is paying the price for its earlier lack of faith.

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Credit: By Liam Denning

Subject: Rates of return; Prices; Capital expenditures; Petroleum industry

Company / organization: Name: Standard & Poors Corp; NAICS: 541519, 511120, 523999, 561450; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: XTO Energy Inc; NAICS: 211111; Name: Deutsche Bank AG; NAICS: 522110, 551111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210

Classification: 9190: United States; 8510: Petroleum industry

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: C.6

Publication year: 2013

Publication date: Mar 11, 2013

column: Heard on the Street

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1315532246

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1315532246?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Anadarko Talked With Exxon, Shell About Mozambique Gas Stake, Official Says

Author: Flynn, Alexis

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Mar 2013: n/a.

ProQuest document link

Abstract:

The discovery of trillions of cubic feet of natural gas offshore Mozambique by Anadarko and Italy's Eni SpA has piqued the interest of some of the world's leading energy companies, which are keen to get a foothold in an area well placed to serve energy-hungry Asian export markets.

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Full text:  

Anadarko Petroleum Corp. has held early-stage talks with Exxon Mobil Corp. and Royal Dutch Shell PLC about selling a share of the U.S. oil firm's massive natural-gas discoveries off the coast of Mozambique, a senior government official in the country said Thursday.

The discovery of trillions of cubic feet of natural gas offshore Mozambique by Anadarko and Italy's Eni SpA has piqued the interest of some of the world's leading energy companies, which are keen to get a foothold in an area well placed to serve energy-hungry Asian export markets.

Anadarko, an oil and gas exploration company based outside Houston, has said it wants to sell as much as 10% of its share of the energy trove.

"We know of Shell speaking to Anadarko, and of talks with ExxonMobil," said the Mozambique official, who spoke on condition of anonymity. He said, however, that Anadarko's talks with the companies so far hadn't brought firm offers, because this would have been communicated to the government.

Anadarko spokesman John Christiansen declined to say which potential buyers Anadarko was talking to.

"We've had a lot of interest from a lot of players--a lot of the majors are very interested," he said.

Exxon spokesman Alan Jeffers said: "We don't comment on potential business opportunities."

Shell declined to comment.

"They don't have to tell us which type of discussions; only when it is at a very, very advanced stage do they come to the government and see if we agree," the Mozambique official told Dow Jones Newswires. "We have always said a deal will be acceptable if the buyer satisfies the technical and financial requirements, that is all. It is up to the seller to decide."

While Anadarko and Eni have said they want to retain a share in the finds, the companies have sought investors to allow them to bank some early profits and defray some of the costs of developing a giant liquefied-natural-gas plant to cool and ship the gas to Asia.

Eni on Thursday announced a deal worth $4.21 billion to sell a 20% stake in its field to Chinese state-owned oil company China National Petroleum Corp.

Although Anadarko and Eni agreed in December to jointly develop the LNG plant, neither has extensive experience with building and operating LNG plants, which can cost up to tens of billions of dollars. By contrast, Exxon and Shell are two of the world's leading LNG investors and shippers.

"Anadarko wants someone with LNG expertise," the Mozambique official said.

For Shell, buying into Anadarko's license area would be its second attempt at getting a position in Mozambique. Last year, the Anglo-Dutch energy company was outbid by Thailand's PTT Exploration & Production, which snapped up Anadarko's junior partner in the field, London-listed Cove Energy, for $1.9 billion.

Ben Lefebvre in New York contributed to this article.

Write to Alexis Flynn at

Credit: By Alexis Flynn

Subject: Petroleum industry; Acquisitions & mergers; Natural gas

Location: Italy Mozambique United States--US

Company / organization: Name: China National Petroleum Corp; NAICS: 211111; Name: Eni SpA; NAICS: 324110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Dow Jones Newswires; NAICS: 519110; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Anadarko Petroleum Corp; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Mar 14, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1316620477

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

BG, Statoil, Exxon Boost East African Gas Resources

Author: Anonymous

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Mar 2013: n/a.

ProQuest document link

Abstract:

Anadarko Petroleum Corp. (APC). has also attracted interest from several companies including Exxon Mobil, Royal Dutch Shell PLC (RDSB.LN), India's state-run Oil & Natural Gas Corp. (500312.BY) and Oil India Ltd. (533106.BY) with the offer of a share of its natural gas discoveries offshore Mozambique, people familiar with the matter told Dow Jones Newswires last week.

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BG Group PLC (BG.LN) Monday said it had completed an appraisal program that further confirmed the natural gas resource and production potential offshore Tanzania, underscoring East Africa's importance as one of the energy industry's hottest new regions.

Separately, Statoil ASA (STO) and partner ExxonMobil Corp. (XOM) announced Monday their third discovery in Block 2 offshore Tanzania.

The mounting volume of gas discoveries off the coast of East Africa has stimulated a wave of interest in the region, culminating in China National Petroleum Corp.'s $4.21 billion acquisition last week of 20% of Eni SpA's (E) giant Mozambique offshore natural gas field.

Anadarko Petroleum Corp. (APC). has also attracted interest from several companies including Exxon Mobil, Royal Dutch Shell PLC (RDSB.LN), India's state-run Oil & Natural Gas Corp. (500312.BY) and Oil India Ltd. (533106.BY) with the offer of a share of its natural gas discoveries offshore Mozambique, people familiar with the matter told Dow Jones Newswires last week.

BG Group said testing on its Jodari-1 field offshore Tanzania showed better-than-expected reservoir properties, demonstrating that wells could produce at higher rates. BG Group holds a 60% interest in the discoveries offshore Tanzania, with Ophir Energy holding 40%.

"The test results confirm the Jodari reservoir's world-class quality; and the potential for the field to underpin the LNG development," said Nick Cooper, chief executive of U.K.-listed Ophir Energy PLC (OPHR.LN). Mr. Cooper was referring to a liquefied natural gas terminal that could be part of gas development in Tanzania.

BG Group is in the process of selecting a site for an onshore LNG terminal. The capacity of the terminal will be determined by further exploration and appraisal results across the company's three offshore blocks. BG estimates the total resource in Tanzania at nearly 10 trillion cubic feet.

Statoil said its latest Tanzania find brings recoverable gas volumes now discovered in the country to between 10 trillion and 13 trillion cubic feet. "[This] brings further robustness to a future decision on a potential LNG project", said Statoil's executive vice president for Exploration, Tim Dodson.

Statoil has a 65% stake in the discoveries, with Exxon Mobil holding the remaining 35%.

Eni and Anadarko have also said they are studying plans to build a LNG plant in Mozambique. Analysts say the region is well-placed to serve growing energy demand in Asian markets.

Write to Selina Williams at selina.williams@wsj.com; Twitter: @selinawilliams3

(Kjetil Malkenes Hovland in Oslo contributed to this story.)

Subject: Natural gas; Petroleum industry; Oil reserves; Energy policy; LNG

Location: Tanzania Mozambique East Africa

Company / organization: Name: Oil India Ltd; NAICS: 211111; Name: China National Petroleum Corp; NAICS: 211111; Name: Eni SpA; NAICS: 324110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Ophir Energy PLC; NAICS: 211111; Name: Statoil ASA; NAICS: 324110, 211111; Name: Dow Jones Newswires; NAICS: 519110; Name: Anadarko Petroleum Corp; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Mar 18, 2013

column: DJ FX Trader

Section: Forex

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1317469567

Document URL: https://login.ezproxy.uta.edu/login?url =https://search-proquest-com.ezproxy.uta.edu/docview/1317469567?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon to Raise Output From Iraq West Qurna-1 to 530,000 B/D by July

Author: Hassan Hafidh

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 Mar 2013: n/a.

ProQuest document link

Abstract:

"According to this year's plan which has been approved by the oil ministry, the consortium will invest some $1.65 billion compared with $1 billion invested last year," Mr. al-Maliki told Dow Jones Newswires.

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U.S. energy company Exxon Mobil Corp. and its partners are planning to increase crude-oil production from West Qurna-1 field in southern Iraq to 530,000 barrels a day by July, from 495,000 barrels a day now, a senior Iraqi oil official said Monday.

Mahdi Abdul Razzaq al-Maliki, head of the field's joint management committee, said the consortium, which also includes Royal Dutch Shell PLC and Iraq, is planning to raise output from West Qurna-1 to 600,000 barrels a day by the end of 2013.

"According to this year's plan which has been approved by the oil ministry, the consortium will invest some $1.65 billion compared with $1 billion invested last year," Mr. al-Maliki told Dow Jones Newswires.

Iraq, a member of the Organization of the Petroleum Exporting Countries, is targeting a total output of 4.5 million barrels a day next year from 3.3 million barrels a day now, the Iraqi prime minister's top energy adviser, Thamir Ghadhban, said.

New oil fields, being developed by some of the world's largest oil companies will come on stream this year such as Majnoon, which is being developed by Shell, West Qurna-2 being developed by OAO Lukoil Holdings and Garraf oil field, which is being upgraded by a consortium led by Malaysia's Petronas and Japan Petroleum Exploration Co., or Japex.

Exxon is in a dispute with the Iraqi government over deals it signed with the semi-autonomous region of Kurdistan in northern Iraq. The Baghdad government says that Exxon should choose between its southern oil field and its deal in the north. Baghdad and Kurdistan are at logger heads over who should control oil resources in the Kurdish region.

Write to Hassan Hafidh at

Credit: By Hassan Hafidh

Subject: Oil fields; Petroleum industry

Location: Iraq Baghdad Iraq United States--US Kurdistan

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Dow Jones Newswires; NAICS: 519110; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Mar 25, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1319305681

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1319305681?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

DOT Proposes $1.7 Million Fine for Exxon Spill

Author: Nicas, Jack

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 Mar 2013: n/a.

ProQuest document link

Abstract:

The Department of Transportation proposed a $1.7 million fine against Exxon Mobil Corp. for failing to properly prepare for what the department says were known flooding risks to one of its pipelines that ruptured in 2011 and spilled 1,500 barrels of crude into Montana's Yellowstone River.

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The Department of Transportation proposed a $1.7 million fine against Exxon Mobil Corp. for failing to properly prepare for what the department says were known flooding risks to one of its pipelines that ruptured in 2011 and spilled 1,500 barrels of crude into Montana's Yellowstone River.

In July 2011, severe flooding on the Yellowstone near Laurel, Mont., eroded the riverbed--an effect known as scour--exposing Exxon's Silvertip pipeline and causing it to break. Before the spill, federal and local officials twice warned Exxon about the potential for flooding, but the company assured them the pipeline had sufficient cover and would not be affected, according to federal documents.

On Monday, the DOT said Exxon failed to address the known risks on the Yellowstone and also failed "to minimize the volume of oil released from any section along the pipeline's" 69 miles. In an earlier report, the department said Exxon delayed shutting down the ruptured pipeline, which the department said increased the size of the spill by about two-thirds. The spill caused an estimated $135 million in property damage, according to federal officials.

Exxon said Monday it was disappointed in the DOT's findings and "committed to learn from the incident." The company said it has applied lessons from the spill to operator training and to procedures on its pipelines' remote-control valves.

The Yellowstone River is a tributary of the Missouri. The Wall Street Journal highlighted in a the danger that river scour poses to underground pipelines, finding that at least 24 petroleum pipelines--owned by various companies--that cross the Missouri River lie within 10 feet or less beneath the riverbed, well within the range of scour observed on the river, according to federal records.

During flooding on the Missouri in 2011, the U.S. Geological Survey found severe scour at 27 sites, with the riverbed deepened in places by 9 to 41 feet. Federal law requires operators to bury pipelines a minimum of 4 feet beneath waterways--a standard Exxon said it was in compliance with a month before the spill.

In December, a congressionally ordered review of pipeline incidents at river crossings found that since 1991, scour has been a factor in at least 16 accidents, which spilled a combined 50,790 barrels of hazardous liquids. The DOT is scheduled to report back to Congress this year to update the department's plans on regulations regarding the depth of buried pipelines.

Write to Jack Nicas at

Credit: By Jack Nicas

Subject: Pipelines; Petroleum industry

Location: Montana Missouri Yellowstone River

Company / organization: Name: Congress; NAICS: 921120; Name: Department of Transportation; NAICS: 926120; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Mar 26, 2013

Section: US

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1319342133

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1319342133?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

U.S. Regulators Propose $1.7 Million Fine for Exxon Pipeline Leak

Author: Lefebvre, Ben

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 Mar 2013: n/a.

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Abstract:

"ExxonMobil failed to properly address known seasonal flooding risks to the safety of its pipeline system, including excessive river scour and erosion, and to implement measures that would have mitigated a spill into a waterway," PHMSA said in its allegations against Exxon, the largest U.S. oil and natural gas producer.

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U.S. regulators proposed a $1.7 million fine against Exxon Mobil Corp., saying the oil company didn't do enough to prevent a 2011 pipeline leak that resulted in oil spilling into the Yellowstone River in Montana.

Exxon's Silvertip pipeline leaked more than 1,500 barrels of oil near Laurel, Mont., after heavy rains and flooding eroded the area around the 12-inch line. Oil was found along a 70-mile stretch along the river that required more than 1,000 people to clean up.

The U.S. Pipeline and Hazardous Material Safety Administration, the federal agency that oversees pipeline safety, said Monday that Exxon didn't have written procedures instructing employees how to protect the pipeline in case of natural disasters.

"ExxonMobil failed to properly address known seasonal flooding risks to the safety of its pipeline system, including excessive river scour and erosion, and to implement measures that would have mitigated a spill into a waterway," PHMSA said in its allegations against Exxon, the largest U.S. oil and natural gas producer.

PHMSA is also proposing Exxon be required to put in place a training program to teach employees how to react to emergencies at the company's pipelines.

Exxon was "disappointed in the findings of this report," company spokeswoman Rachael Moore said.

"We committed to learn from the incident and have since applied the learning to our remote control valve procedures and operator training," Ms. Moore said.

The proposed fine comes after Congress passed a law in 2012 that doubled the maximum values of fines for a related series of pipeline violations to $2 million.

Write to Ben Lefebvre at

Credit: By Ben Lefebvre

Subject: Pipelines; Petroleum industry

Location: United States--US Montana Yellowstone River

Company / organization: Name: Congress; NAICS: 921120; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Mar 26, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1319465766

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1319465766?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Cleans Up After Arkansas Oil Spill

Author: Sider, Alison

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Mar 2013: n/a.

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The U.S. Environmental Protection Agency is categorizing the incident as a "major spill," the company said, which means that more than 250 barrels of oil have been released.

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Exxon Mobil Corp. is working to clean up thousands of barrels of oil that spilled from its pipeline into an Arkansas residential neighborhood Friday afternoon.

The U.S. Environmental Protection Agency is categorizing the incident as a "major spill," the company said, which means that more than 250 barrels of oil have been released. Exxon said "a few thousand barrels of oil" have been observed in the area, but the company is staging a response worthy of a spill of more than 10,000 barrels "to be conservative."

Mayflower, the site of the spill, is in Faulkner County, about 25 miles outside of Little Rock, Ark. The city evacuated 22 homes Friday as oil flowed into yards and through the streets. Exxon said Saturday it had about 100 workers in the area and had deployed 2,000 feet of containment boom and had 15 vacuum trucks at work cleaning up the oil Saturday afternoon. The company said it has recovered 4,500 barrels of oil and water.

On Saturday, Faulkner County Judge Allen Dodson said the U.S. EPA has estimated that as much as 2,000 barrels have been released into the neighborhood, but so far, responders have been able to stop that oil from flowing into Lake Conway, a nearby 6,700-acre freshwater lake. Mr. Dodson said it looks like the cleanup effort might take several weeks.

On Saturday crews were working to keep the oil contained even as rain pelted the earthen dams put in place to hold the oil back, he said. "We're dealing with added water flow from the rain," Mr. Dodson said.

If the early estimates prove to be correct, the spill could be larger than a 2011 pipeline leak into the Yellowstone River in Montana. On Monday U.S. pipeline regulators proposed a $1.7 million fine against Exxon for allegedly not doing enough to prevent that leak of about 1,500 barrels of crude into the river after the pipeline ruptured during severe flooding.

The regulators also proposed that Exxon employees be required to put in place a training program to teach employees how to react to emergencies at the company's pipelines. Exxon said it was disappointed in the regulators' findings, and that it has applied lessons learned from the Montana spill to its remote-control-valve procedures and operator training.

In a filing with the National Response Center Friday, Exxon reported that the amount of oil released was unknown, but told regulators that the "incident may be a significant material release."

Exxon said Friday evening that the pipeline, which carries oil from a hub in Patoka, Ill. to the Texas Gulf Coast, was shut down. The pipeline delivers oil to the Sunoco Logistics terminal in Nederland, Texas, where it is then shipped to various Houston area refiners, according to the Exxon Pipeline Co.'s website.

Write to Alison Sider at

Credit: By Alison Sider

Subject: Pipelines; Petroleum industry

Location: Arkansas Montana

Company / organization: Name: Environmental Protection Agency--EPA; NAICS: 924110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Mar 30, 2013

Section: US

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1321615732

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1321615732?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Plans World's Biggest Floating LNG Plant

Author: Ross, Kelly

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Apr 2013: n/a.

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According to the International Energy Agency, China's natural-gas demand alone will more than quadruple to 545 billion cubic meters (19.247 trillion cubic feet) between 2011 and 2035.

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SYDNEY--Exxon Mobil Corp. laid out plans for a development using the world's biggest floating natural-gas-processing plant, in a technically challenging move that underscores its bullish view on Asian demand for the fuel.

Exxon and partner BHP Billiton Ltd. want to anchor a vessel extending 495 meters (541 yards) at sea to tap into the remote Scarborough natural-gas field offshore Western Australia. They are seeking government approval for the multibillion-dollar project and targeting first production as early as 2020.

Floating liquefied-natural-gas technology, known as FLNG, is untried but has captured the attention of some of the world's biggest energy companies seeking to access gas fields that are too small or remote to develop using pipelines and onshore facilities. Royal Dutch Shell PLC is a leading proponent of FLNG vessels, which it plans to deploy in Australia and possibly elsewhere.

The relative calm of the waters off Australia's northeastern coastline make the country a strong candidate to accommodate the world's first FLNG vessels. Its stable political environment and proximity to Asian markets are also drawcards. According to the International Energy Agency, China's natural-gas demand alone will more than quadruple to 545 billion cubic meters (19.247 trillion cubic feet) between 2011 and 2035.

However, companies like Exxon need to ensure their vessels can withstand stormy seas. One main concern is that the forces generated by liquefied gas sloshing in partially filled containers can damage the storage system. That issue is being addressed with containers designed to minimize sloshing and with elaborate anchoring systems that limit the movement of vessels in the water.

Exxon's proposed facility would produce between six million and seven million metric tons of liquefied natural gas, or LNG, a year for several decades. LNG is natural gas chilled to a liquid so that it can be shipped by tanker. The Scarborough resource was discovered in 1979 and is estimated to hold up to 10 trillion cubic feet of gas, equal to more than a third of the U.S.'s annual gas consumption.

Early design work would begin next year, ahead of a final investment decision in 2014-15, Exxon said in a filing to the Australian government's environment department. A Melbourne-based spokeswoman for Exxon said FLNG has "the capacity to reduce our capital costs by removing the need for infrastructure" and has a smaller environmental footprint.

With close to a dozen natural-gas export terminals planned for its coastline, Australia is poised to leapfrog Qatar as the world's top exporter of LNG by the end of the decade.

The industry, however, is facing cost headwinds driven by a strong local currency and a shortage of skilled labor. Underscoring these challenges, Chevron Corp. and joint-venture partners including Exxon and Shell said in December the cost of building their giant Gorgon LNG project on the Western Australian coast had expanded by a fifth to 52 billion Australian dollars (US$54.4 billion).

The budget overruns come as Australia is likely to face rising competition from emerging gas-export industries in North America and Africa, which could make it tougher to secure customers.

FLNG is often touted by company executives as a means of mitigating cost pressures because much of the construction process occurs offshore in countries with cheaper sources of labor. Companies also don't have to pay for acquiring and clearing land.

"For some of the more economically challenged gas resources out there, floating LNG is going to take on a much higher profile," said Andrew Williams, a Melbourne-based energy analyst at RBC Capital Markets.

In 2011, Shell committed to use a FLNG vessel to process natural gas from its Prelude field in the Browse Basin offshore northwestern Australia. The vessel is due to begin producing 3.6 million tons of LNG each year from 2017.

Shell estimated that its project would cost between US$3 billion and US$3.5 billion for every one million tons of production capacity, or between US$10.8 billion and US$12.6 billion.

In its filing Tuesday, Exxon didn't estimate a cost for its Scarborough development.

Credit: By Ross Kelly

Subject: Petroleum industry; Capital costs; Natural gas; LNG

Location: Western Australia Australia

Company / organization: Name: BHP Billiton; NAICS: 211111, 212231, 212234; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: International Energy Agency; NAICS: 928120

Product name: Boeing 747

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Apr 2, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1322436875

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1322436875?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Arkansas Water System to Ask Exxon to Move Its Pipeline

Author: Sider, Alison

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Apr 2013: n/a.

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The Arkansas Attorney General's office is opening an investigation into the causes of an Exxon Mobil Corp. pipeline rupture that spilled thousands of gallons of oil into a small town last week and forced the evacuation of more than 20 homes.

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Arkansas officials plan to ask Exxon Mobil Corp. (XOM) to move a portion of its Pegasus Pipeline to ensure safe drinking water, after thousands of barrels of oil last week spilled from the pipeline into a small-town neighborhood.

The pipeline runs for 13 miles through the Lake Maumelle Watershed, an 88,000-acre area that drains into the main source of drinking water for 400,000 people in central Arkansas.

Watershed protection manager John Tynan, who works for the area's water authority, Central Arkansas Water, said in an interview that the water system has always been aware of the pipeline. The oil conduit has been there longer than Lake Maumelle and was rerouted when the lake was built in the 1950s so as not to run directly under the water.

The water system has worked closely with Exxon to check for potential problems with the pipeline and to prepare for the risk of a spill.

But, he said, the only way to completely eliminate the risk would be to move the pipeline further away.

"Obviously, there will always be some risk to the watershed as long as the pipeline is present there. So with recent occurrences, this just heightens concerns we've had for some time."

In an email to Pulaski County, Ark., justices of the peace Monday, Mr. Tynan wrote that the system will submit a formal request to Exxon to move the pipeline and is also asking that the company hold off on restarting it until "assurances can be provided that the line in the watershed has been deemed safe."

A spokesman for Exxon declined to comment on the proposal.

Exxon's Pegasus Pipeline, a 95,000-barrel-a-day conduit that transports heavy Canadian crude from Patoka, Ill., to the Texas Gulf Coast, has been shut in since Friday, when the spill occurred in Mayflower, Ark. Cleanup efforts were still underway Tuesday, and Exxon said it was working on a plan to bring residents back to 22 homes that had been evacuated.

The Arkansas Attorney General's office said Tuesday that it is opening an investigation into the spill, a first step in determining whether the oil giant may be liable for the consequences of the spill under the Arkansas Water and Air Pollution Act and other laws.

"There are many questions and concerns remaining as to the long-term impacts, environmental and otherwise, from this spill," he wrote Tuesday, asking the company to retain all its documents and data relevant to the spill and cleanup effort.

The cause of the spill is still unknown. Exxon spokeswoman Rachael Moore said Tuesday that the company will "cooperate fully" with any investigation. The company plans to excavate and remove the affected section of pipe to take a closer look.

In an interview, Arkansas Attorney General Dustin McDaniel declined to speculate on the total cost of the spill, but he said the state's claims could include damages to groundwater and surface impacts including lost tourism dollars from nearby Lake Conway and the impact to local businesses.

Drawing a parallel to BP's payments to businesses affected by the 2010 Deepwater Horizon disaster in the Gulf of Mexico, though on a "much, much smaller scale," Mr. McDaniel said he had communicated with attorney generals in Mississippi and Louisiana about their states' responses to oil spills.

"It's certainly the first time since I've been attorney general that I've had to take this kind of action with this kind of environmental incident," he said. "On a much, much smaller scale than what we saw BP have to pay in the Gulf, if businesses or the economy, in addition to our natural resources, were damaged by the rupture in the pipeline, then obviously it's going to be incumbent on the attorney general's office" to explore the state's options, Mr. McDaniel said.

Mr. McDaniel said the state attorney general's office and the state Insurance Department would assist homeowners with their private claims against Exxon if needed.

Exxon's pipeline had once shipped Gulf Coast crude north to the Chicago area but was little used when the company decided to reverse the flow in 2006 to carry Canadian oil. The leaking section of pipeline was built in the late 1940s but passed a high-pressure test in January 2006 and an internal inspection in July 2010 done by a piece of equipment that measures for metal loss or other anomalies, according to Exxon Mobil officials.

In 2011, the Pipeline and Hazardous Materials Safety Administration ordered Exxon to pay a $26,200 fine for letting more than five years pass before inspecting the area where the pipeline crosses under the Mississippi River between Illinois and Missouri, hundreds of miles from where the pipeline leaked last week.

Most of the homes in the neighborhood where the oil spilled were built shortly after Exxon Mobil restarted the pipeline in 2006. Many homeowners, including Joe Bradley, who bought his home new in 2008, were not aware of the pipeline running nearby.

Mr. Bradley said he has asked Exxon to purchase his house because he does not feel safe living there with his 8-year-old daughter.

"They have not hurt my property value, they more or less threw it out the window with this spill," Mr. Bradley said. "There's no way could sell that home now, nor would I, except to Exxon."

(Tom Fowler contributed to this article.)

Write to Alison Sider at alison.sider@dowjones.com

Credit: By Alison Sider

Subject: Attorneys general; Oil spills; Pipelines; Petroleum industry; Air pollution

Location: Arkansas Illinois

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Apr 2, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1322509461

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1322509461?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon, Rosneft Firm Up LNG Plant Plan

Author: Marson, James

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Apr 2013: n/a.

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Abstract: None available.

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MOSCOW--Exxon Mobil Corp. and Russia's OAO Rosneft said Thursday they could spend $15 billion building a proposed gas-liquefaction plant on Russia's Pacific coast in a move to jump start the country's attempts to ship the fuel to lucrative Asian markets.

The plant could start shipping gas from 2018, Rosneft's chief executive said, finally bringing significant sales of gas from one of the country's first energy joint ventures, which Exxon first agreed to develop in 1996.

The companies in February said they would study the feasibility of the plant, but Thursday's comments provide the first indication of the scale and timing of their plan. The firms will decide whether to go ahead by June.

Russian President Vladimir Putin has called for increased liquefied natural gas, or LNG, exports, as Russia--the world's largest energy producer--has lagged behind in sales of the fuel, supercooled and shipped by tanker. He suggested in February that firms other than state gas company OAO Gazprom could be allowed to sell gas abroad in order to keep Russian gas competitive on foreign markets. Sales to Europe by Gazprom--the only firm currently permitted to export gas--have dwindled in recent years amid falling demand and increased competition.

Rosneft, the world's largest listed oil producer, has pushed for permission to export LNG. The state-controlled company's powerful chief executive, Igor Sechin, said Thursday that sales of around five million metric tons of gas from the Sakhalin-1 project in Russia's east, which would expand to include the proposed new LNG plant, should begin by 2018 in order to snap up buyers.

Mr. Putin, however, warned that plans to build the plant should be coordinated with the Energy Ministry, saying that companies and the government should work to a "unified plan."

Gazprom is planning a liquefaction plant on the Pacific coast, which aims to ship 10 million tons from 2018. Novatek, Russia's top nonstate gas producer, intends to ship the first gas from its Arctic LNG plant, which will have a capacity of 16.5 million tons, by 2017.

Gazprom opposes opening exports to other firms.

Analysts said the success of Exxon's and Rosneft's project would depend on keeping costs low. Asia is currently the most lucrative market for gas sales, but it could turn into a buyer's market by 2020 when a number of new LNG projects will be supplying the region.

"Rosneft and Exxon have a window of opportunity if they can conclude a final investment decision quickly and get ahead of projects in Israel and Mozambique. That would make them first in a new series of projects, which would give them an advantage," Thierry Bros, a gas analyst at Société Générale, said.

Credit: By James Marson

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Apr 11, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1325604978

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1325604978?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-19

Database: The Wall Street Journal

Exxon CEO's Compensation Rises to $40.2 Million

Author: González, Ángel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Apr 2013: n/a.

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Abstract: None available.

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Exxon Mobil Corp. said Friday that Chief Executive Rex Tillerson's total compensation rose 15% last year to $40.2 million.

Most of the increase was due to a change in pension value and other deferred compensation earnings, which rose to $13 million in 2012 from $9.8 million in 2011, the oil company said in a proxy report to shareholders.

Mr. Tillerson's salary rose slightly to $2.56 million, from $2.38 million in 2011. His bonus saw a slight bump up to $4.58 million from $4.368 million.

Stock awards for Mr. Tillerson rose to $19.62 million from $17.89 million in 2011.

Exxon, based in Irving, Texas, is the largest publicly traded oil company in the U.S.

Credit: By Ángel González

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Apr 12, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1326278933

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1326278933?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Big Spills From Aging Oil Pipelines; Seam Failures From Old, Outmoded Welds Are Under Study After Exxon and Chevron Lines Rupture

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Apr 2013: n/a.

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Recent pipeline ruptures, including one at an Exxon Mobil Corp. pipeline that caused a major oil spill in Arkansas last month, are raising fresh questions about the safety of pipes made decades ago using obsolete welding techniques.

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Recent pipeline ruptures, including one at an Exxon Mobil Corp. pipeline that caused a major oil spill in Arkansas last month, are raising fresh questions about the safety of pipes made decades ago using obsolete welding techniques.

Though the industry stopped making what is known as low-frequency, electric-resistance welded pipe by about 1970, it still accounts for more than a quarter of the 182,500 miles of liquid fuel pipelines across the U.S., according to federal data for 2011, the latest available.

The accidents come as federal regulators are examining whether state-of-the-art inspection methods are capable of detecting flaws in these old pipe seams. A U.S. regulator has commissioned a study of old, substandard pipe that could help shape new rules.

In the Exxon rupture and another on a Chevron Corp. pipeline in Utah last month that spilled 600 barrels of diesel near the Great Salt Lake, segments of the pipes were made about 60 years ago by bending metal sheets to form a tube, then heating the edges with a low-frequency electric current to weld them lengthwise. Such welds can leave defects in seams that make them vulnerable to corrosion and cracks, risks that have been known for decades.

The Chevron pipeline appeared to split along the welded seam, according to federal regulators. A Chevron spokesman said while the investigation continues, "Initial indications are that the release may have been the result of a longitudinal seam failure in the pipeline."

The Exxon pipeline gushed about 5,000 barrels of crude into a residential neighborhood through a 22-foot, incision-like break.

"It clearly looks like a seam-type failure," Rick Kuprewicz, a Seattle-based pipeline-safety consultant, said after seeing photographs of the Exxon rupture.

Exxon spokesman Alan Jeffers said the company hasn't reached any conclusions on the cause of the pipeline failure and is awaiting a third-party review of the ruptured section, which was removed on Monday.

"If we felt there was a problem we would have done something else, but in hindsight clearly there was an issue," Mr. Jeffers said of the company's safety tests.

It isn't clear from federal records how often obsolete welds play a role in accidents. Of the 1,151 accidents on liquids pipelines since 2010 reported to federal regulators, 78% don't show what kind of weld was involved, and 85% don't show when the pipe was manufactured, according to a Wall Street Journal review of government data. The Pipeline and Hazardous Materials Safety Administration says most of the accidents involved very small spills, or weren't related to pipe welds, so operators weren't required to furnish detailed information about them.

But the number of pipeline accidents has been rising; the 364 accidents on liquids pipelines last year were the most since 2008, but fewer than in 2002, according to federal data.

The threat of substandard welding "seems to be rearing its ugly head again," said Carl Weimer, a pipeline-safety advocate and executive director of nonprofit Pipeline Safety Trust. "The issue is how well are companies mitigating for that risk?"

A spokesman for the Association of Oil Pipe Lines says old pipe is safe as long as it is well-maintained, and that spills are relatively rare.

Federal regulators have questioned the adequacy of inspection methods that failed to reveal problems with these pipes before major explosions, including a 2007 blast in Mississippi that killed two people and injured seven.

The welds are such a concern that PHMSA, the pipeline regulator, in 2011 commissioned a $4.2 million, multiyear study of electric-welded pipes and how to prevent them from failing while in use.

Battelle Memorial Institute, which is conducting the study, has analyzed 280 cases in which electric-welded pipes failed between 1950 and 2005, including 55 failures while the pipe was in use. The nonprofit research group says the surest way to identify a weld defect is to pump water through the pipe at high pressure. Such tests are costly, requiring a company to shut down the line, and in some cases apparently led to failures when placed back in service, Battelle says.

The other chief testing method involves running a robotic device through the interior of the pipe to detect any anomalies. This device, commonly called a "smart pig," has at times failed to catch flaws that later resulted in a rupture.

"Neither of them is foolproof," said Brian Leis, a researcher leading Battelle's study. "Both are better than one."

Chevron last pressure-tested the pipeline that ruptured in Utah in 1987, and inspected it internally in 2009. Exxon conducted a pressure test on its Arkansas pipe in 2006, according to regulators. It conducted an internal inspection in 2010 that didn't find any significant anomalies, and another one in February, but hasn't received the results, regulators say.

By 1970, most pipe manufacturers began using a high-frequency current to weld, which produced seams less prone to fractures, according to a Battelle report submitted to federal regulators in September.

Last July, a pipeline carrying gasoline in southeastern Wisconsin split along an old electric-welded seam, spilling about 1,000 barrels and prompting the evacuation of two homes.

The operator, West Shore Pipeline Co., reported a second rupture in August on an similarly antiquated seam. It pressure-tested both pipelines more than a decade ago, and performed several different internal inspections on them between 2009 and 2012.

Both pipelines were running at or above the maximum pressure determined to be safe, and one was significantly corroded, according to federal records."We are continuing to consistently re-evaluate our programs, and consistently look to further test our lines to maintain them safely and operate them safely," said Patrick D. Hodgins, a spokesman for Buckeye Partners LP, which controls West Shore Pipeline.

Tom Fowler contributed to this article.

Write to Daniel Gilbert at

Credit: By Daniel Gilbert

Subject: Failure; Nonprofit organizations; Petroleum industry

Location: United States--US Arkansas Utah

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Apr 15, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1326901981

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1326901981?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Big Spills Lurk Inside Aging Pipelines --- Old Welding Technique Examined After Exxon, Chevron Lines Rupture; Crude Oil on the Cul-de-Sac

Author: Gilbert, Daniel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]16 Apr 2013: B.1.

ProQuest document link

Abstract:

Recent pipeline ruptures, including one at an Exxon Mobil Corp. pipeline that caused a major oil spill in Arkansas last month, are raising fresh questions about the safety of pipes made decades ago using obsolete welding techniques.

Links: 360 Link to Full Text

Full text:  

Recent pipeline ruptures, including one at an Exxon Mobil Corp. pipeline that caused a major oil spill in Arkansas last month, are raising fresh questions about the safety of pipes made decades ago using obsolete welding techniques.

Though the industry stopped making what is known as low-frequency, electric-resistance welded pipe by about 1970, it still accounts for more than a quarter of the 182,500 miles of liquid fuel pipelines across the U.S., according to federal data for 2011, the latest available.

The accidents come as federal regulators are examining whether state-of-the-art inspection methods are capable of detecting flaws in these old pipe seams. A U.S. regulator has commissioned a study of old, substandard pipe that could help shape new rules.

In the Exxon rupture and another on a Chevron Corp. pipeline in Utah last month that spilled 600 barrels of diesel near the Great Salt Lake, segments of the pipes were made about 60 years ago by bending metal sheets to form a tube, then heating the edges with a low-frequency electric current to weld them lengthwise. Such welds can leave defects in seams that make them vulnerable to corrosion and cracks, risks that have been known for decades.

The Chevron pipeline appeared to split along the welded seam, according to federal regulators. A Chevron spokesman said while the investigation continues, "Initial indications are that the release may have been the result of a longitudinal seam failure in the pipeline."

The Exxon pipeline gushed about 5,000 barrels of crude into a residential neighborhood through a 22-foot, incision-like break.

"It clearly looks like a seam-type failure," Rick Kuprewicz, a pipeline-safety consultant, said after seeing photographs of the Exxon rupture.

Exxon spokesman Alan Jeffers said the company hasn't reached any conclusions on the cause of the pipeline failure and is awaiting a third-party review of the ruptured section, which was removed on Monday.

"If we felt there was a problem we would have done something else, but in hindsight clearly there was an issue," Mr. Jeffers said of the company's safety tests.

It isn't clear from federal records how often obsolete welds play a role in accidents. Of the 1,151 accidents on liquids pipelines since 2010 reported to federal regulators, 78% don't show what kind of weld was involved, and 85% don't show when the pipe was manufactured, according to a Wall Street Journal review of government data. The Pipeline and Hazardous Materials Safety Administration says most of the accidents involved very small spills, or weren't related to pipe welds, so operators weren't required to furnish detailed information about them.

But the number of pipeline accidents has been rising; the 364 accidents on liquids pipelines last year were the most since 2008, but fewer than in 2002, according to federal data.

The threat of substandard welding "seems to be rearing its ugly head again," said Carl Weimer, a pipeline-safety advocate and executive director of nonprofit Pipeline Safety Trust. "The issue is how well are companies mitigating for that risk?"

A spokesman for the Association of Oil Pipe Lines says old pipe is safe as long as it is well-maintained, and that spills are relatively rare.

Federal regulators have questioned the adequacy of inspection methods that failed to reveal problems with these pipes before major explosions, including a 2007 blast in Mississippi that killed two people and injured seven.

The welds are such a concern that PHMSA, the pipeline regulator, in 2011 commissioned a $4.2 million, multiyear study of electric-welded pipes and how to prevent them from failing while in use.

Battelle Memorial Institute, which is conducting the study, has analyzed 280 cases in which electric-welded pipes failed between 1950 and 2005, including 55 failures while the pipe was in use. The nonprofit research group says the surest way to identify a weld defect is to pump water through the pipe at high pressure. Such tests are costly, requiring a company to shut down the line, and in some cases apparently led to failures when placed back in service, Battelle says.

The other chief testing method involves running a robotic device through the interior of the pipe to detect any anomalies. This device, commonly called a "smart pig," has at times failed to catch flaws that later resulted in a rupture.

"Neither of them is foolproof," said Brian Leis, a researcher leading Battelle's study. "Both are better than one."

Chevron last pressure-tested the pipeline that ruptured in Utah in 1987, and inspected it internally in 2009. Exxon conducted a pressure test on its Arkansas pipe in 2006, according to regulators. It conducted an internal inspection in 2010 that didn't find any significant anomalies, and another one in February, but hasn't received the results, regulators say.

By 1970, most pipe manufacturers began using a high-frequency current to weld, which produced seams less prone to fractures, according to a Battelle report submitted to federal regulators in September.

Last July, a pipeline carrying gasoline in southeastern Wisconsin split along an old electric-welded seam, spilling about 1,000 barrels and prompting the evacuation of two homes.

The operator, West Shore Pipeline Co., reported a second rupture in August on an similarly antiquated seam. It pressure-tested both pipelines more than a decade ago, and performed several different internal inspections on them between 2009 and 2012.

"We are continuing to consistently re-evaluate our programs, and consistently look to further test our lines to maintain them safely and operate them safely," said Patrick D. Hodgins, a spokesman for Buckeye Partners LP, which controls West Shore Pipeline.

---

Tom Fowler contributed to this article.

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Credit: By Daniel Gilbert

Subject: Failure; Nonprofit organizations; Petroleum industry; Oil spills; Pipelines

Location: United States--US Arkansas Utah

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2013

Publication date: Apr 16, 2013

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1327034397

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Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Posts Flat Earnings; Spinoff Costs Hurt Conoco

Author: Fowler, Tom

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 Apr 2013: n/a.

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Abstract:

Exxon Mobil Corp.'s first-quarter profit rose slightly compared to last year but its production of oil and natural gas fell, as the energy giant continued to struggle in a world where large oil-and-gas fields are harder to find.

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Exxon Mobil Corp.'s first-quarter profit rose slightly compared to last year but its production of oil and natural gas fell, as the energy giant continued to struggle in a world where large oil-and-gas fields are harder to find.

The Irving, Texas, energy company's oil and natural gas production dropped for the seventh consecutive quarter on a year-over-year basis, falling 3.5% from the same period last year, to 4.4 million barrels of oil equivalent a day.

Exxon has said its production would begin to expand by as much as 4% a year from 2014 through 2017 as it starts pumping at more than two dozen major oil and gas projects. Its much-delayed Kearl oil sands project in Canada started production at the end of March.

It reported a profit of $9.5 billion, or $2.12 a share, on Thursday, up from $9.45 billion, or $2 per share, a year earlier. Revenue dropped 12% to $108.81 billion; its revenues last year reflected a recent peak in oil prices as well as higher petroleum sales volumes.

In the U.S., oil production rose 2% in part because of its acquisition of North Dakota fields from Denbury Resources Inc. last fall. Exxon has dialed back on drilling for natural gas in the face of a glut in the U.S.

The company said it sold its U.S. natural gas in the first quarter for an average of $3.32 a thousand cubic feet, the highest price in more than a year. Analysts asked Exxon during a conference call if it would consider greater attention to natural gas because of a recent rise in prices.

"We don't tend to take the last two data points and draw a trend line and react," said David Rosenthal, vice president of investor relations. But he said the company has the flexibility to ramp up gas production quickly if prices continue to rise.

Exxon's earnings from exploration and production declined 9.8%, to $7.04 billion, in the first quarter. Refining profits fell 2.6%, to $1.55 billion, while earnings from chemical production rose 62 percent, to $1.1 billion, due to better margins.

The company recorded $400 million in asset sales during the quarter, down from $2.5 billion a year ago when it sold refining assets in Asia, Central America and elsewhere.

Exxon also said it would cut by $1 billion the amount it spends buying back its shares in the coming quarter, to $4 billion, the first drop since the end of 2010. The company spent $5.6 billion in the first quarter buying back shares, including $600 million to meet obligations under its employee benefit plans.

The reduced share buyback disappointed some investors, sending Exxon shares down 1.5%, or $1.36, to $88.07 in 4 p.m. trading on the New York Stock Exchange.

"Share buybacks are the only way to show per share growth for mature companies," said Fadel Gheit, an energy analyst with Oppenheimer & Co. "But share buybacks are unsustainable in a sub-$100 oil price environment, especially when rising costs are squeezing margins."

Separately, Houston-based ConocoPhillips Corp. said its first-quarter earnings fell 27%, reflecting in part the year-earlier spinoff of its refining business and $950 million in asset sale gains.

ConocoPhillips reported a profit of $2.14 billion, or $1.73 a share, down from $2.94 billion, or $2.27 a share, a year earlier. Average daily production of oil and gas fell 1.6% after recent asset sales and the company has said that output likely would fall further this quarter.

Production chief Matt Fox said natural gas prices need to be "significantly north" of where they are and to stay that way before the company would consider increasing gas drilling.

Alison Sider and Ben Lefebvre contributed to this article.

Write to Tom Fowler at

Credit: By Tom Fowler

Subject: Natural gas; Petroleum industry; Financial performance; Stock prices; Corporate profits; Sales; Petroleum production; Earnings per share

Location: Texas United States--US

Company / organization: Name: Denbury Resources Inc; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Apr 25, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1345881933

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Earnings: Exxon Mobil's Output Declines Again

Author: Fowler, Tom

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]26 Apr 2013: B.4.

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Abstract:

Exxon Mobil Corp.'s first-quarter profit rose slightly compared with last year but its production of oil and natural gas fell, as the energy giant continued to struggle in a world where large oil-and-gas fields are harder to find.

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Exxon Mobil Corp.'s first-quarter profit rose slightly compared with last year but its production of oil and natural gas fell, as the energy giant continued to struggle in a world where large oil-and-gas fields are harder to find.

The Irving, Texas, energy company's oil and natural gas production dropped for the seventh consecutive quarter on a year-over-year basis, falling 3.5% from the same period last year, to 4.4 million barrels of oil equivalent a day.

Exxon has said its production would begin to expand by as much as 4% a year from 2014 through 2017 as it starts pumping at more than two dozen major oil and gas projects. Its much-delayed Kearl oil sands project in Canada started production at the end of March.

It reported a profit of $9.5 billion, or $2.12 a share, on Thursday, up from $9.45 billion, or $2 per share, a year earlier. Revenue dropped 12% to $108.81 billion; its revenues last year reflected a recent peak in oil prices as well as higher petroleum sales volumes.

In the U.S., oil production rose 2% in part because of its acquisition of North Dakota fields from Denbury Resources Inc. last fall. Exxon has dialed back on drilling for natural gas in the face of a glut in the U.S.

The company said it sold its U.S. natural gas in the first quarter for an average of $3.32 a thousand cubic feet, the highest price in more than a year. Analysts asked Exxon during a conference call if it would consider greater attention to natural gas because of a recent rise in prices.

"We don't tend to take the last two data points and draw a trend line and react," said David Rosenthal, vice president of investor relations. But he said the company has the flexibility to ramp up gas production quickly if prices continue to rise.

Exxon's earnings from exploration and production declined 9.8%, to $7.04 billion, in the first quarter. Refining profits fell 2.6%, to $1.55 billion, while earnings from chemical production rose 62 percent, to $1.1 billion, due to better margins.

The company recorded $400 million in asset sales during the quarter, down from $2.5 billion a year ago when it sold refining assets in Asia, Central America and elsewhere.

Exxon also said it would cut by $1 billion the amount it spends buying back its shares in the coming quarter, to $4 billion, the first drop since the end of 2010. The company spent $5.6 billion in the first quarter buying back shares, including $600 million to meet obligations under its employee benefit plans.

The reduced share buyback disappointed some investors, sending Exxon shares down 1.5% to $88.07 in 4 p.m. trading on the New York Stock Exchange.

"Share buybacks are the only way to show per share growth for mature companies," said Fadel Gheit, an energy analyst with Oppenheimer & Co. "But share buybacks are unsustainable in a sub-$100 oil price environment, especially when rising costs are squeezing margins."

Separately, Houston-based ConocoPhillips Corp. said its first-quarter earnings fell 27%, reflecting in part the year-earlier spinoff of its refining business and $950 million in asset sale gains.

ConocoPhillips reported a profit of $2.14 billion, or $1.73 a share, down from $2.94 billion, or $2.27 a share, a year earlier. Average daily production of oil and gas fell 1.6% after recent asset sales and the company has said that output likely would fall further this quarter.

Production chief Matt Fox said natural gas prices need to be "significantly north" of where they are and to stay that way before the company would consider increasing gas drilling.

---

Alison Sider and Ben Lefebvre contributed to this article.

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Credit: By Tom Fowler

Subject: Natural gas; Petroleum industry; Financial performance; Stock prices; Corporate profits; Petroleum production; Earnings per share

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 9190: United States; 3400: Investment analysis & personal finance; 8510: Petroleum industry

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.4

Publication year: 2013

Publication date: Apr 26, 2013

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1346100678

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1346100678?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Workers Threaten Strike at Exxon Refinery

Author: Lefebvre, Ben

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Apr 2013: n/a.

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Union workers at the second-largest U.S. refinery are threatening to strike in mid-June over a safety dispute with facility owner Exxon Mobil Corp. The United Steelworkers said Monday that about 850 union employees could halt work at Exxon's 584,000-barrel-a-day refinery in Baytown, Texas, unless the company agrees to new contract language on safety at the plant.

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Union workers at the second-largest U.S. refinery are threatening to strike in mid-June over a safety dispute with facility owner Exxon Mobil Corp.

The United Steelworkers said Monday that about 850 union employees could halt work at Exxon's 584,000-barrel-a-day refinery in Baytown, Texas, unless the company agrees to new contract language on safety at the plant.

A strike at Exxon's Baytown facility would be the first work-stoppage at a refinery that size in recent memory. But it is unlikely to produce a major increase in fuel prices because there is ample refining capacity and U.S. demand remains lackluster, analysts said.

Exxon, the largest U.S. oil company by market value, has experienced a number of safety problems with its operations recently, including a major oil spill from a segment of its Pegasus pipeline in Arkansas and a fire on April 17 at its 344,000-barrel-a-day Beaumont, Texas, refinery that injured a dozen contract workers.

One of the Beaumont workers died from his injuries Saturday and, as of Monday morning, two remained in critical condition at the University of Texas Medical Branch at Galveston, said a spokeswoman for the hospital. Another worker is in serious condition, the spokeswoman said.

The USW has raised concerns about safety at the Baytown plant since June 2011, after a worker suffered burns on 25% of his body because of a problem with a steam-vent valve. The union said it proposed health-and-safety language but Exxon refused to accept it in its final offer given April 15. The two sides will meet again on May 3, with a strike and management lockout planned if no agreement is reached, the union said in a statement.

"We're confident that an agreement can be reached with Exxon Mobil and a strike averted," said Richard Landry, a spokesman for the USW local at Baytown.

Exxon has made an "extensive effort" to resolve issues with the union at Baytown, said company spokeswoman Patty Errico. In case of a strike, Exxon would continue running the plant, Ms. Errico added. The refinery is a five-square-mile campus that includes two chemical-manufacturing plants.

"We have made necessary arrangements that will allow us to continue to safely operate the plant until successor collective-bargaining agreements are reached," Ms. Errico said.

The union said the safety language it is seeking is already in place at Exxon's refineries in Torrance, Calif., Billings, Mont., Chalmette, La., and Beaumont. Exxon didn't reply to a question about its labor contracts in other refineries.

The USW has been pushing for increased safety standards at refineries since an explosion at Tesoro Corp.'s refinery in Anacortes, Wash., killed seven workers. In May 2012, more than two hundred workers went on strike at Husky Energy Inc.'s 155,000-barrel-a-day refinery in Lima, Ohio, partly because of safety concerns.

A production problem at Baytown would likely have only a small effect on fuel supply in the U.S., said Morningstar analyst Allen Good.

That's because Motiva Enterprises LLC, the joint venture of Royal Dutch Shell PLC and Saudi Refining Inc., is restarting major production units at its 600,000-barrel-a-day refinery in Port Arthur, Texas---the largest refinery in the country.

In addition, Valero Energy Corp., Marathon Petroleum Corp. and other refiners could sell in the U.S. the gasoline and diesel fuel they would normally export to Europe and Latin America. U.S. refiners shipped 485,000 barrels a day of gasoline and 832,000 barrels a day of diesel fuel abroad during the week of April 19, according to the U.S. Energy Information Administration.

"Any loss of supply could be turned around and kept here in the States," Mr. Good said.

Write to Ben Lefebvre at

Credit: By Ben Lefebvre

Subject: Petroleum refineries; Petroleum industry; Workers; Gasoline prices

Location: Texas United States--US

Company / organization: Name: United Steelworkers of America; NAICS: 813930; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Tesoro Corp; NAICS: 324110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Apr 29, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1346636231

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1346636231?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon in Talks With InterOil on Papua New Guinea Assets

Author: Winning, David; Ross, Kelly

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 May 2013: n/a.

ProQuest document link

Abstract:

SYDNEY--Exxon Mobil Corp. is in exclusive talks with InterOil Corp. to invest in the latter's gas assets in Papua New Guinea, a move that could cement the impoverished Southeast Asian country's position as a new significant energy exporter.

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SYDNEY--Exxon Mobil Corp. is in exclusive talks with InterOil Corp. to invest in the latter's gas assets in Papua New Guinea, a move that could cement the impoverished Southeast Asian country's position as a new significant energy exporter.

International energy companies are increasing their bets on regions that have previously played only small roles in the global energy in response to Asian demand for clean fuels. Papua New Guinea, better known for its jungles and tribal society, is due to start receiving a revenue windfall next year, when the Exxon Mobil-led $19 billion PNG LNG project starts up.

Houston-based InterOil owns the Elk and Antelope gas discoveries in Papua New Guinea. In 2009, it signed an agreement with the government to develop a large-scale gas project on the country's south coast.

"Exxon Mobil is in exclusive negotiations with InterOil over the Elk and Antelope developments," an Exxon spokeswoman said by telephone from Port Moresby, Papua New Guinea's capital, Friday.

In a statement confirming the talks with Exxon, InterOil said it is discussing whether gas from the Elk and Antelope fields would support an expansion of the PNG LNG project or a new gas-export facility. It didn't specify financial terms.

Papua New Guinea's government has insisted that InterOil bring in a company with experience in building and operating a multibillion-dollar LNG and in the past has threatened to terminate the 2009 agreement if its demands weren't met. In September 2011, InterOil hired UBS AG, Morgan Stanley and a unit of Australia's Macquarie Group as advisers to find a buyer for stakes in the gas fields and a proposed export plant.

Relations between InterOil and the government have warmed as it became clearer the company was closing in on a preferred development partner.

Papua New Guinea, which has around 6.4 million people and covers an area slightly larger than California, is a challenging country to do business in. Little infrastructure exists outside Port Moresby, and the hilly, densely forested terrain makes moving around difficult.

The country comprises several thousand separate communities and has a long-running history of tribal conflict. That lawlessness has been exacerbated by an influx of guns and other weapons into urban areas. The Economist Intelligence Unit ranked Port Moresby as one of the worst cities in the world in 2011, measured in terms of stability, infrastructure and other indicators.

Wood Mackenzie, a U.K.-based consultancy, estimates Papua New Guinea has 26 trillion cubic feet of natural gas--roughly equivalent to U.S. consumption of the clean-burning fuel in a year. That likely underestimates its true potential, as Papua New Guinea has only been lightly explored for oil and gas up to now.

Unlike rival LNG suppliers in the Middle East, shipments to Asia from Papua New Guinea won't pass through the Malacca Strait choke point near Singapore, increasing its appeal to investors. Shipping costs are also lower.

On Thursday, Japan's Osaka Gas Co. agreed to pay Australia's Horizon Oil 204 million . Horizon has made a string of discoveries and is considering a new gas-export facility.

Mitsubishi Corp. and Total SA were among international companies to acquire stakes in gas discoveries and exploration blocks last year.

Write to David Winning at and Ross Kelly at

Credit: By David Winning And Ross Kelly

Subject: Petroleum industry; Energy policy; Ports; Energy industry; Natural gas utilities

Location: Australia California Papua New Guinea

Company / organization: Name: Morgan Stanley; NAICS: 523110, 523120, 523920; Name: Economist Intelligence Unit; NAICS: 519110; Name: Macquarie Group; NAICS: 523110; Name: UBS AG; NAICS: 522110, 523110, 523120, 523920, 523930

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: May 24, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1354910026

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Seeks to Expand PNG LNG Plant's Capacity; An Exxon Executive Says the Company Is More Interested in Expanding PNG LNG Capacity Than Building a New Plant if an Asset Purchase Agreement Is Reached

Author: Ross, Kelly

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 May 2013: n/a.

ProQuest document link

Abstract:

BRISBANE, Australia--Exxon Mobil Corp. would prefer to use natural-gas fields in Papua New Guinea owned by InterOil Corp. to expand the country's $19 billion PNG LNG gas-export project than to build a second export facility, a senior Exxon executive said Monday. to invest in the latter's gas assets in Papua New Guinea.

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BRISBANE, Australia--Exxon Mobil Corp. would prefer to use natural-gas fields in Papua New Guinea owned by InterOil Corp. to expand the country's $19 billion PNG LNG gas-export project than to build a second export facility, a senior Exxon executive said Monday.

to invest in the latter's gas assets in Papua New Guinea. However, it didn't specify at the time whether the assets would underpin a new liquefied natural-gas plant or support an expansion of the PNG LNG project that is already under construction.

"We are interested in it because it could potentially provide an expansion of our existing facility," Mark Nolan, Exxon's vice president, Middle East and Australia, told reporters.

Choosing not to build a second LNG plant could put Exxon at odds with Papua New Guinea's government, which wants to encourage as much investment as it can in the impoverished nation to stimulate economic growth. Expanding existing LNG projects is usually cheaper and less labor-intensive than building them from scratch because some essential infrastructure, such as roads and pipelines, is already in place.

Papua New Guinea's government had insisted that InterOil bring in a company with experience in building and operating a multibillion-dollar LNG plant. Relations have warmed in recent months as it became clearer that InterOil was closing in on a preferred development partner.

The PNG LNG project, which counts Australia's Oil Search Ltd. and Santos Ltd. as shareholders, is being built with two gas-processing units, known as trains. The foundation stage of the project is more than 80% complete and on track to ship its first LNG cargoes to Asian customers next year.

Exxon and partners have already found more resources in Papua Guinea that could lead to an expansion of PNG LNG to three trains, including the recent P'nyang discovery, so Mr. Nolan's comments are the strongest sign yet that Exxon may be able to expand it to four trains.

Exxon has estimated that it would need another 4 trillion or 5 trillion cubic feet of natural gas to add another train to PNG LNG.

"The resource will determine the size of the project, and, at the end of the day, the market will as well," Mr. Nolan said.

Wood Mackenzie, a U.K.-based consultancy, estimates Papua New Guinea has 26 trillion cubic feet of natural gas--roughly equivalent to U.S. consumption of the clean-burning fuel in a year. That likely underestimates its true potential, as Papua New Guinea has only been lightly explored for oil and gas up to now.

Write to Ross Kelly at

Credit: By Ross Kelly

Subject: LNG; Natural gas reserves; Petroleum industry; Energy policy; Natural gas

Location: Australia Middle East

Company / organization: Name: Oil Search Ltd; NAICS: 213111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: May 27, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1355456674

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon's Tillman to Head Marathon Oil

Author: Sider, Alison

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 June 2013: n/a.

ProQuest document link

Abstract:

[...]Mr. Cazalot oversaw Marathon's transition from an integrated oil company that was heavily focused on its international operations to an independent exploration-and-production company that has seen its production boosted by its focus on U.S. shale-oil formations such as the Eagle Ford in Texas and the Bakken in North Dakota.

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Marathon Oil Corp. announced Thursday that its longtime chief executive, Clarence Cazalot Jr., will retire this year and will be replaced by Exxon Mobil Corp. executive Lee Tillman.

Mr. Tillman, who helped manage projects around the world for Exxon Mobil, will take the reins at Marathon on Aug. 1 when Mr. Cazalot steps down.

Mr. Cazalot has served as Marathon's CEO for nearly 14 years and is approaching the company's mandatory retirement age of 65 years old for executives. He will remain chairman of the company's board through the end of the year.

Mr. Cazalot saw Houston-based Marathon through major changes--the company separated from what became U.S. Steel Corp. and became a stand-alone firm under his leadership in 2002.

More recently, Mr. Cazalot oversaw Marathon's transition from an integrated oil company that was heavily focused on its international operations to an independent exploration-and-production company that has seen its production boosted by its focus on U.S. shale-oil formations such as the Eagle Ford in Texas and the Bakken in North Dakota.

Marathon was one of the first exploration-and-production companies of its class to take notice of the promise of so-called tight oil from shale fields, which, due to hydraulic-fracturing techniques first applied in natural-gas fields, have led a resurgence in U.S. oil production.

Raymond James analyst Pavel Molchanov said picking its new leader from the ranks of the world's largest integrated oil company is a sign that Marathon has no plans to abandon its global business model.

"Their current growth is more focused on domestic and unconventional formations than it historically has been, but this hire suggests that there is definitely a remaining culture within the company that is open to international opportunities and large projects," Mr. Molchanov said. "Mr. Tillman's global footprint in many ways matches Marathon's."

Mr. Tillman, 51 years old, most recently was vice president of engineering for Exxon Mobil Development Co. He has spent his career at Exxon and has worked in Jakarta, Indonesia; Aberdeen, Scotland; Stavanger, Norway; Malabo, Equatorial Guinea; Dallas, and New Orleans.

Dave Roberts, Marathon's former chief operating officer, had widely been seen as a possible successor for Mr. Cazalot, but abruptly left the company late last year.

Ben Fox Rubin contributed to this article.

Credit: By Alison Sider

Subject: Appointments & personnel changes; Petroleum industry; Chief executive officers; Petroleum production

Location: United States--US

People: Reilley, Dennis H

Company / organization: Name: US Steel Corp; NAICS: 331110; Name: Marathon Oil Corp; NAICS: 486110, 324110, 211111, 213112

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Jun 13, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1367084050

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Arkansas, U.S. Sue Exxon Over March Oil-Pipeline Spill

Author: Fowler, Tom

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 June 2013: n/a.

ProQuest document link

Abstract:

The suit, filed in federal court in Arkansas on Thursday, alleges that the March 29 rupture of the Pegasus pipeline near Mayflower, Ark., led to violations of the Arkansas Water and Air Pollution Control Act, the state Hazardous Waste Management Act and the federal Clean Water Act.

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Arkansas and federal officials filed a lawsuit against Exxon Mobil Corp. on Thursday for allegedly violating pollution laws following the March rupture of an oil pipeline in the state.

The suit, filed in federal court in Arkansas on Thursday, alleges that the March 29 rupture of the Pegasus pipeline near Mayflower, Ark., led to violations of the Arkansas Water and Air Pollution Control Act, the state Hazardous Waste Management Act and the federal Clean Water Act. The suit also accuses the company of operating a storage facility for the recovered oil without a permit.

The pipeline ruptured next to a residential subdivision, spilling an estimated 5,000 barrels of Canadian crude through yards and streets into a small creek, wetlands and a nearby recreational lake. Twenty-two homes were evacuated.

The alleged state law violations are subject to civil fines ranging from $10,000 to $25,000 a day, while the federal Clean Water Act violations carry fines up to $4,300 per barrel of oil spilled.

"This spill disrupted lives and damaged our environment," Arkansas Attorney General Dustin McDaniel said in a statement. "It sullied our previously pristine water and our clean air. As the party responsible for this incident, Exxon is also responsible for the penalties imposed by the state for the damage to our environment and the company should foot the bill for the state's cleanup costs."

A spokesman for Exxon said the company hadn't seen the complaint and didn't have a comment.

Some nearby residents have separately sued the company, complaining of health concerns and economic losses. Exxon has asked a judge to dismiss that suit.

Exxon estimates it will pay about $15 million for spill cleanup and for housing residents in area hotels. It has also offered to compensate homeowners for lost real-estate values, including making offers to buy homes at prespill prices.

The cause of the rupture is unclear, but it occurred in a section of pipe that was more than 60 years old and had a type of weld that has been known to fail more frequently. One pipeline safety expert told The Wall Street Journal previously that the rupture appears to be on just such a seam.

Earlier this week, federal officials granted Exxon a second time extension to test the ruptured section of pipeline to determine the accident's cause.

Initially the company was required to provide an analysis of the pipe by May 17, but it was later extended to June 7. Exxon and federal regulators received a draft of that report on time but Exxon asked for another four weeks for further testing.

Write to Tom Fowler at

Credit: By Tom Fowler

Subject: Clean Water Act-US; Fines & penalties; Environmental protection; Air pollution; Pipelines

Location: Arkansas

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Jun 13, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1367108490

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Requests Permit to Export Canadian LNG From Pacific Coast

Author: Fowler, Tom

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 June 2013: n/a.

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Exxon Mobil Corp. has asked Canadian officials for a permit to export liquefied natural gas from the Pacific coast, marking the fifth such proposal for tapping into the country's large natural-gas reserves.

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Exxon Mobil Corp. has asked Canadian officials for a permit to export liquefied natural gas from the Pacific coast, marking the fifth such proposal for tapping into the country's large natural-gas reserves.

The proposed project would be capable of liquefying up to 4 billion cubic feet of natural gas per year for export via tanker from one of several sites under consideration, according to a June 19 application with Canada's National Energy Board. If the application is approved and the company decides to move forward with the project, it could begin shipments as early as 2021.

Exxon and Imperial Oil Resources Ltd., the Irving, Texas, energy company's Canadian affiliate, previously filed an expression of interest with the provincial government in British Columbia to develop an LNG site there. The application filed this week considers several sites, including Kitimat and Prince Rupert, British Columbia.

Companies in Canada and the United States are considering dozens of projects to turn an overabundance of domestic natural-gas production into an export bonanza. The U.S. Department of Energy is considering applications from 19 projects to ship natural gas to countries that don't have free-trade agreements with the U.S., which include most energy-hungry Asian nations such as China and Japan. Exxon is waiting for a non-FTA permit for its Golden Pass terminal near Port Arthur, Texas. DOE already has approved non-FTA permits for two of these projects--Cheniere Energy Partners LLC's Sabine Pass project in Louisiana and the Freeport LNG Expansion LP project in Texas.

A study commissioned by the U.S. Department of Energy last year found that exports would bring net economic benefits to the U.S., but Energy Secretary Ernest Moniz recently said further approvals might be slow in coming if officials feel the need to further study the cumulative impact of each new project.

Earlier this week in Canada BG Group PLC submitted a proposal for what would be known as Prince Rupert LNG in British Columbia. A proposed LNG project backed by Apache Corp. and Chevron Corp. received the first LNG export license from Canadian officials in 2011. Two others, one led by Royal Dutch Shell PLC and the smaller Douglas Channel Energy Partnership project, also have been approved, but none has reached a final investment decision to begin construction.

--Chester Dawson contributed to this article.

Write to Tom Fowler at

Credit: By Tom Fowler

Subject: Natural gas; Petroleum industry; Energy policy; Natural gas reserves; LNG

Location: Canada Texas British Columbia Canada United States--US

Company / organization: Name: Chevron Corp; NAICS: 324110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Apache Corp; NAICS: 324110, 211111, 213112; Name: Department of Energy; NAICS: 926130

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Jun 21, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1370199917

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

BP Seeks Its Inner Exxon; The oil giant tries to shed its reputation as a serial capitulator.

Author: Jenkins, Holman W; Jr.

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 July 2013: n/a.

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On Monday, before a U.S. appeals court, BP will argue that the claims procedure it agreed to is being unfairly and perhaps corruptly administered by a court-appointed lawyer and his staff. BP money has been used by Gulf localities for reasons having nothing to do with the spill: to repair hurricane damage to marshes, to build a convention center, to benefit local burghers who suffered no harm.

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Can't we all get along? The answer is no, for good reason.

Conflict is the noise of a healthy society going about its business. Lawsuits, though sometimes abusive when the legal system dangles perverse incentives, are evidence of Americans vindicating their rights.

BP, after the Gulf spill, was beset by a legal and political firestorm. The company faced a financial threat that could have led to bankruptcy or dismemberment. Faustian is not quite the word for the deal BP announced on March 3, 2012, with the so-called plaintiffs steering committee.

It agreed to compensate Gulf-area businesses and individuals for economic losses without proof those losses were related to the spill. Worse, whether any losses occurred would be determined by a casual process that virtually invited plaintiffs to game their financial statements.

"The craziest thing," wrote one lawyer touting his services to clients, "is that you can be compensated for losses that are UNRELATED to the spill."

Unexpectedly but perhaps not surprisingly, law firms themselves turned out to be among the biggest claimants. In a recent round of payouts totalling $100 million, $33 million went to six law firms that claimed they suffered economic losses due to the spill, says BP spokesman Geoff Morrell.

On Monday, before a U.S. appeals court, BP will argue that the claims procedure it agreed to is being unfairly and perhaps corruptly administered by a court-appointed lawyer and his staff. In a different case before the same New Orleans judge who upheld the claims process, BP is also settling in for a long fight over whether the spill amounted to gross negligence.

The orneriness represents a change in the company's attitude. Once BP said it didn't want the Deepwater Horizon accident to become Exxon Valdez, whose litigation dragged on for 20 years. Now some inside BP are starting to look at Exxon as an inspiration.

When an Exxon tanker ran aground in Alaska in 1989, the company did not deny responsibility. It pled guilty to four federal crimes, paying $125 million in fines. It settled a $22 million damages claim by native communities.

Though Exxon stipulated that damage occurred, when thousands of plaintiffs lined up, Exxon reasonably concluded that only litigation could determine how much injury occurred and who suffered it.

Plaintiffs also sought huge punitive damages in excess of any actual harm suffered. Exxon fought them all the way to the Supreme Court, which reduced a $5 billion jury award to $500 million.

From the get-go, BP's dilemma was worse than Exxon's. Washington could probably have put the foreign-owned company out of business if it had wanted to. BP quickly accepted responsibility for the Deepwater Horizon accident; in advance of any court proceeding, it announced a $20 billion compensation fund.

But BP, which had access to the John Grisham library, could not have been naive about what would follow from the strategy it adopted. BP money has been used by Gulf localities for reasons having nothing to do with the spill: to repair hurricane damage to marshes, to build a convention center, to benefit local burghers who suffered no harm.

Alabama's attorney general personally barnstormed his state with the court-appointed claims administrator, Louisiana lawyer Pat Juneau. Together, they urged Alabamans to get in on a "hell of a deal."

In a Grisham-like plot twist, one attorney now has been bounced as claims adjudicator amid allegations he received contingency payments from lawyers whose claims he approved. Another bigwig trial attorney, who once hosted President Obama for a fundraiser at his home, was forced to withdraw from the plaintiffs steering committee amid charges he signed up local Vietnamese residents as plaintiffs without their knowledge.

In Monday's hearing, BP's opponents will argue this is exactly what BP bargained for: a quick and dirty solution to buy off local influentials and soften up the tort bar by handing out easy money.

What the company got instead is a reputation as a serial capitulator. Now BP is trying to claw back credibility to resist an open raid on its pocketbook.

In Britain, the press has had a field day playing on stereotypes of Southern justice, which may or may not weigh with the appeals court, which is expected to issue a decision as early as next week. But there's a larger lesson.

Many politicians and activists seem to think businesses should pre-emptively surrender their own interests in clashes with the "public interest." But there is no heavenly determined public interest. There are only various parties whose claims should never be credited without examination. The rule of law is not an inconvenience but a necessity, unless we want pillage to become the rule in our society. Next time a company finds itself in BP's position--as difficult as that position was--it might do better to wrap itself in the flag and head straight to court.

Credit: By Holman W. Jenkins, Jr.

Subject: Litigation; Federal court decisions; Law firms; Damage claims; Punitive damages

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Jul 5, 2013

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1397567278

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1397567278?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon: Report Finds Outdated Welding Caused Arkansas Pipeline Rupture; Lab Says Seam Cracks Tied to 1940s Welding Led to March Spill of 5,000 Barrels of Oil

Author: Sider, Alison

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 July 2013: n/a.

ProQuest document link

Abstract:

The cracks are related to an outdated welding process that, as The Wall Street Journal reported in April, is no longer performed on new pipes but that still affects thousands of miles of pipelines in use across the U.S. The lab also found that the pipeline's limited flexibility also contributed to the incident, Exxon said.

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An independent report found that a rupture in an Exxon Mobil Corp. pipeline that spilled thousands of barrels of oil in Mayflower, Arkansas, earlier this year was caused by defects tied to when the pipe was built in the 1940s, the company said.

An independent metallurgical laboratory looked at the section of the pipe that ripped open in March, spilling an estimated 5,000 barrels of oil into a residential neighborhood in the small town about 25 miles from Little Rock.

Exxon said Thursday it is reviewing the results of that assessment, which were provided to the company and the Pipeline and Hazardous Materials Safety Administration on Wednesday.

The Texas oil giant said that according to the report, hook-shaped cracks along the pipe's seams were the root cause of the pipe's failure, not corrosion. The cracks are related to an outdated welding process that, as The Wall Street Journal reported in April, is no longer performed on new pipes but that still affects thousands of miles of pipelines in use across the U.S.

The lab also found that the pipeline's limited flexibility also contributed to the incident, Exxon said. The report hasn't been made public, and PHMSA is still reviewing it, a spokesman for the agency said.

The section of the pipe that ruptured is more than 60 years old but passed a high-pressure test in 2006 and an internal inspection in 2010 that sought to measure metal loss or other anomalies, Exxon said.

Aaron Stryk, a spokesman for Exxon, said the full results of a more detailed inspection Exxon conducted earlier this year aren't yet available. That inspection, called a transverse flux, uses a magnetic field to find corrosion along seams. It can also detect cracks and other defects, though not as reliably as it can detect corrosion, according to PHMSA's website.

Once the results come out, the company will review whether it needs to make changes to its pipeline integrity management program, Mr. Stryk said.

But it isn't clear how reliable that test will be in detecting potential problems along pipeline seams, said Rick Kuprewicz, a pipeline-safety consultant.

"That's the million dollar question," Mr. Kuprewicz said.

The type of cracks found to have caused the rupture in Mayflower are associated with some types of an early welding process called electric resistance welding, according to PHMSA's website. That process hasn't been used on new pipelines since about 1970, but about a quarter of the 182,500 miles of liquid fuel pipelines across the U.S. were welded that way, according to the most recent federal data.

Other pipeline ruptures have been linked to electrically welded pipe over the years, including a 2007 break in a liquid-propane pipe near Carmichael Miss., which caused a fire that killed two people. In 2011, PHMSA commissioned a study of how to detect problems in these pipes and prevent the pipes from failing while in use.

Arkansas and the U.S. government have sued Exxon for allegedly violating pollution laws. The Arkansas attorney general hasn't yet seen the testing results, a spokesman for the office said.

Write to Alison Sider at

Credit: By Alison Sider

Subject: Pipelines; Welding; Petroleum industry; Corrosion

Location: Arkansas United States--US Texas

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Jul 11, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1399388056

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permiss ion.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon to Pay Penalty to Settle Clean Water Act Case; U.S. Says Company Will Also Spend $20 Million to Prevent Fracking-Wastewater Spills

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 July 2013: n/a.

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Exxon Mobil Corp. has agreed to pay a $100,000 penalty and take steps that could cost $20 million to prevent spills of wastewater from gas-drilling operations, settling allegations it violated the Clean Water Act, the Justice Department and Environmental Protection Agency said.

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Exxon Mobil Corp. has agreed to pay a $100,000 penalty and take steps that could cost $20 million to prevent spills of wastewater from gas-drilling operations, settling allegations it violated the Clean Water Act, the Justice Department and Environmental Protection Agency said.

The settlement requires Exxon's natural-gas subsidiary, XTO Energy, to beef up safeguards for storing wastewater left over from hydraulic fracturing, which involves injecting water, sand and chemicals into a well to break up rock and release oil and gas.

The agencies estimated the improvements would cost $20 million and will include more barriers to guard against spills as well as remote monitoring of tanks that hold wastewater.

The settlement stems from a 2010 spill at a XTO facility in north-central Pennsylvania, where state regulators found wastewater had seeped into a tributary of the Susquehanna River.

The settlement "establishes a program of best practices that should be a model for the industry and, if followed, will give a level of assurance to the people of the Commonwealth that their waters will be protected," Peter J. Smith, U.S. Attorney for the Middle District of Pennsylvania, said in a statement.

Exxon said that "XTO worked quickly and cooperatively with state and federal authorities to clean up this discharge of produced water, which resulted in no lasting environmental impact." It added in its statement that the "consent decree is an appropriate resolution of this matter."

Exxon added that XTO has largely implemented the containment strategy in the region over the last 18 months.

The Justice Department, in its statement, said the settlement means XTO will increase wastewater recycling and will properly dispose of wastewater generated by its natural-gas activities across the Mid-Atlantic region.

Exxon shares rose 92 cents to close Thursday at $94.38.

Nathalie Tadena contributed to this article.

Write to Daniel Gilbert at

Credit: By Daniel Gilbert

Subject: Petroleum industry; Natural gas exploration

People: Gilbert, Daniel

Company / organization: Name: XTO Energy Inc; NAICS: 211111; Name: Environmental Protection Agency--EPA; NAICS: 924110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Jul 18, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1400845120

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1400845120?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Investors Applaud as Big Oil Gets Smaller; Less Pumping and Higher Dividends at Exxon, Chevron, BP and Shell Combined

Author: Jakab, Spencer

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 July 2013: n/a.

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With BP PLC, Exxon Mobil Corp., Chevron Corp. and Royal Dutch Shell PLC announcing quarterly results this week, it is clear that size and even growth are overrated.

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Happy anniversary, Big Oil.

The world's energy supermajors wouldn't mind seeing crude hit $147 a barrel, as it did exactly five years ago, but their shareholders aren't exactly pining for the days of yore. That is despite the fact that the companies earn a lot less profit and even pump fewer hydrocarbons today.

With BP PLC, Exxon Mobil Corp., Chevron Corp. and Royal Dutch Shell PLC announcing quarterly results this week, it is clear that size and even growth are overrated. Those four companies made a combined $28 billion in profit during the previous quarter. Although oil prices today aren't far off their level during the spring of 2008, those earnings are $10 billion less than what the companies made five years ago.

Part of the reason is that they haven't invested as aggressively and, in the case of BP following its legal woes related to the Gulf of Mexico oil spill, have even sold assets.

Today, the four companies produce about 13.6 million barrels of oil equivalent a day among them. Five years ago, their output was about 300,000 barrels a day more.

Another reason is that much of the "equivalent" happens to be natural gas, not oil. In the huge North American market, gas prices have collapsed from their levels of the mid-2000s amid a shale-drilling bonanza.

Though net income is lower, share buybacks and dividend increases have enriched shareholders. An investor owning one share or depositary receipt of each company could expect to reap $10.44 in dividends over the next 12 months, compared with the $8.88 paid five years ago.

More impressive still is that, even compared with the time of the peak oil price five years ago, the companies are worth more. A portfolio containing a share of each is now 11% more valuable.

That is surprising, given the fantastic projections about the energy market some investors made back then. There was talk of "superspikes" and crude hitting $200 a barrel. Today, investors are attracted to oil producers' cash flow in a low-yield world. Each dollar spent on exploration is one less that can be used to shrink the share base or pay dividends.

Though it turns out that sometimes less really is more, "Medium Oil" may take some getting used to.

Write to Spencer Jakab at spencer.jakab@wsj.com

Credit: Spencer Jakab

Subject: Petroleum industry; Investments; Profits

Company / organization: Name: Chevron Corp; NAICS: 324110, 211111; Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Jul 28, 2013

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1413183199

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon and Chevron Miss Out on U.S. Oil Boom; The Country Is Producing More Oil and Gas, but Output at Big Oil Companies Has Sagged

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 July 2013: n/a.

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[...]Chevron squeezed out 40% more profit per barrel of oil and natural gas last quarter than Exxon, which in turn booked fatter production margins than Royal Dutch Shell PLC and BP PLC, according to their financial statements.

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The U.S. is pumping more oil and natural gas than it has in decades, but the boom hasn't been enough to prop up the sagging output of America's two biggest energy producers, Exxon Mobil Corp. and Chevron Corp.

The oil giants are spending unprecedented billions of dollars to find and extract petroleum, hunting in harder rocks, deeper underground and farther offshore.

Even so, Exxon and Chevron are tapping less oil and gas than they did even three years ago. As Exxon reports earnings Thursday and Chevron follows Friday, their quarterly results are expected to show that production growth remains elusive.

Last year alone, Exxon's oil and gas production fell 6% from 2011, to 4.2 million barrels a day. Chevron's production fell 2.4%, to 2.6 million barrels a day.

Big Oil's shrinking output contrasts with global oil production, which has risen 12% over the last decade, according to the U.S. Energy Information Administration.

Oil prices have climbed far faster, tripling since 2003 to over $100 a barrel. That gives energy companies more incentive to drill, and it boosts their cash flow so they can afford to spend more.

But the big companies are finding that the pools of oil they have access to are shrinking--or are technologically more complicated to tap.

For oil, "anytime price goes up and supply doesn't really follow, it's getting damn hard to get it out of the ground," said Dan Pickering, co-president of investment bank Tudor, Pickering, Holt & Co.

Chevron's costs to produce a barrel of oil and its equivalent in natural gas have jumped 41% since 2010, while Exxon's have climbed 23.5% over that period. Both companies say these costs are lower when factoring in their share of production and expenses from companies in which they have a stake.

Chevron and Exxon have plowed more money into drilling in North America in recent years, chasing smaller rivals that have unlocked vast oil and gas deposits from shale-rock formations. But the big oil firms' output hasn't yet made up for their dwindling global production.

Barclays Capital Inc. projects that Exxon's global profits from producing oil and gas will shrink 17% in the second quarter from a year earlier despite a 24% increase in profits from U.S. production. The bank also predicts Exxon's global production will continue to slide for the eighth consecutive quarter of year-over-year decreases.

To reverse this decline, Exxon is spending $38 billion this year to try to add a million new barrels of oil and gas by 2017, which could lift production 14% from last year's level. Chevron, with half the revenue of Exxon, is spending nearly as much as it seeks to increase its own flagging production 26% over the next four years.

The two big U.S. oil companies aren't operating from the same playbook. Chevron has been cautious about playing the U.S. shale boom, focusing more on high-margin oil than its peers, while Exxon's investments exposed it to cratering natural-gas prices. As a result, Chevron squeezed out 40% more profit per barrel of oil and natural gas last quarter than Exxon, which in turn booked fatter production margins than Royal Dutch Shell PLC and BP PLC, according to their financial statements.

Chevron has taken bigger stakes in its marquee projects, such as its two gas-liquefaction projects in Australia on which it plans to spend $81 billion with its partners. The company has increased its capital spending 70% since 2010, to a projected $33.4 billion this year, amid higher production costs.

"The cost structure has gone up," said George Kirkland, Chevron's vice chairman. But so have oil prices, he added, boosting the company's cash flow. This, he said, "has allowed us in many ways to invest more."

Still, Chevron's cash on hand fell to $17.4 billion at the end of March, down from $20.9 billion in the previous quarter. The company added $6 billion by issuing debt in July.

Exxon's unit production costs, slightly lower than Chevron's, have tripled since 2003. The company's $6.6 billion in cash at the end of last quarter is its lowest in a decade, and it is curtailing its stock buy-back program for the first time in several years.

An Exxon spokesman said the company has generated $138 billion in cash flow after capital expenditures over the past five years, which "enables us to invest in opportunities and provide unmatched shareholder distributions." The company said its return on capital employed--a measure of the profitability of its investments--is the highest among its peers.

Exxon's and Chevron's global rivals are also grappling with more expensive drilling. Sanford C. Bernstein & Co. surveyed 50 of the world's biggest energy producers and found that as a group, their production costs rose while profit margins shrank.

"This cannot continue," the analysts wrote in their May report. "As long as oil prices stay flat and costs continue to rise, it will be impossible for the industry to sustain the current levels" of spending.

Corrections & Amplifications Chevron plans to spend $81 billion with its partners on its two gas-liquefaction projects in Australia. An earlier version of this article incorrectly said Chevron plans to spend that amount and failed to mention its partners.

Write to Daniel Gilbert at daniel.gilbert@wsj.com and Tom Fowler at tom.fowler@wsj.com

Credit: Daniel Gilbert

Subject: Natural gas; Petroleum industry; Corporate profits; Costs; Prices; Energy economics; Capital expenditures; Petroleum production

Location: United States--US

Company / organization: Name: Barclays Capital Inc; NAICS: 523110; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Jul 31, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1416063819

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Corporate News: Exxon, Chevron Tap Less Oil and Gas

Author: Gilbert, Daniel; Fowler, Tom

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]01 Aug 2013: B.2.

ProQuest document link

Abstract:

[...]Chevron squeezed out 40% more profit per barrel of oil and natural gas last quarter than Exxon, which in turn booked fatter production margins than Royal Dutch Shell PLC and BP PLC, according to their financial statements.

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The U.S. is pumping more oil and natural gas than it has in decades, but the boom hasn't been enough to prop up the sagging output of America's two biggest energy producers, Exxon Mobil Corp. and Chevron Corp.

The oil giants are spending unprecedented billions of dollars to find and extract petroleum, hunting in harder rocks, deeper underground and farther offshore.

Even so, Exxon and Chevron are tapping less oil and gas than they did even three years ago. As Exxon reports earnings Thursday and Chevron follows Friday, their quarterly results are expected to show that production growth remains elusive.

Last year alone, Exxon's oil and gas production fell 6% from 2011, to 4.2 million barrels a day. Chevron's production fell 2.4%, to 2.6 million barrels a day.

Big Oil's shrinking output contrasts with global oil production, which has risen 12% over the past decade, according to the U.S. Energy Information Administration.

Oil prices have climbed far faster, tripling since 2003 to more than $100 a barrel. That gives energy companies more incentive to drill, and it boosts their cash flow so they can afford to spend more.

But the big companies are finding that the pools of oil they have access to are shrinking -- or are technologically more complicated to tap.

For oil, "anytime price goes up and supply doesn't really follow, it's getting damn hard to get it out of the ground," said Dan Pickering, co-president of investment bank Tudor, Pickering, Holt & Co.

Chevron's costs to produce a barrel of oil and its equivalent in natural gas have jumped 41% since 2010, while Exxon's have climbed 23.5% over that period. Both companies say these costs are lower when factoring in their share of production and expenses from companies in which they have a stake.

Chevron and Exxon have plowed more money into drilling in North America in recent years, chasing smaller rivals that have unlocked vast oil and gas deposits from shale-rock formations. But the big oil firms' output hasn't yet made up for their dwindling global production.

Barclays Capital Inc. projects that Exxon's global profits from producing oil and gas will shrink 17% in the second quarter from a year earlier despite a 24% increase in profits from U.S. production. The bank also predicts Exxon's global production will continue to slide for the eighth consecutive quarter of year-over-year decreases.

To reverse this decline, Exxon is spending $38 billion this year to try to add a million new barrels of oil and gas by 2017, which could lift production 14% from last year's level. Chevron, with half the revenue of Exxon, is spending nearly as much as it seeks to increase its own flagging production 26% over the next four years.

The two big U.S. oil companies aren't operating from the same playbook. Chevron has been cautious about playing the U.S. shale boom, focusing more on high-margin oil than its peers, while Exxon's investments exposed it to cratering natural-gas prices. As a result, Chevron squeezed out 40% more profit per barrel of oil and natural gas last quarter than Exxon, which in turn booked fatter production margins than Royal Dutch Shell PLC and BP PLC, according to their financial statements.

Chevron has taken bigger stakes in its marquee projects, such as its two gas-liquefaction projects in Australia on which it plans to spend $81 billion with its partners. The company has increased its capital spending 70% since 2010, to a projected $33.4 billion this year, amid higher production costs.

"The cost structure has gone up," said George Kirkland, Chevron's vice chairman. But so have oil prices, he added, boosting the company's cash flow. This, he said, "has allowed us in many ways to invest more."

Still, Chevron's cash on hand fell to $17.4 billion at the end of March, down from $20.9 billion in the previous quarter. The company added $6 billion by issuing debt in July.

Exxon's unit production costs, slightly lower than Chevron's, have tripled since 2003. The company's $6.6 billion in cash at the end of last quarter is its lowest in a decade, and it is curtailing its stock buy-back program for the first time in several years.

An Exxon spokesman said the company has generated $138 billion in cash flow after capital expenditures over the past five years, which "enables us to invest in opportunities and provide unmatched shareholder distributions." The company said its return on capital employed -- a measure of the profitability of its investments -- is the highest among its peers.

Exxon's and Chevron's global rivals are also grappling with more expensive drilling. Sanford C. Bernstein & Co. surveyed 50 of the world's biggest energy producers and found that as a group, their production costs rose while profit margins shrank.

"This cannot continue," the analysts wrote in their May report.

Credit: By Daniel Gilbert and Tom Fowler

Subject: Petroleum production

Location: United States--US

Company / organization: Name: Chevron Corp; NAICS: 211111, 324110; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 9190: United States; 8510: Petroleum industry

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.2

Publication year: 2013

Publication date: Aug 1, 2013

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1416011801

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1416011801?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon Earnings: Profit Falls 57% on Lower Revenue, Year-Earlier Gains

Author: Fowler, Tom

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Aug 2013: n/a.

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Abstract:

Exxon Mobil Corp. said its second-quarter profit fell 57% from the year-earlier period, when asset sales and tax breaks helped drive earnings to a record high.

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Exxon Mobil Corp. said its second-quarter profit fell 57% from the year-earlier period, when asset sales and tax breaks helped drive earnings to a record high.

The oil-and-gas producer on Thursday reported profit of $6.9 billion, or $1.55 a share, compared with $15.9 billion, or $3.41 a share, a year ago. Analysts had been expecting a per-share profit of $1.90. Revenue decreased 16% to $106.5 billion.

The year-earlier period included $7.5 billion in asset sales and tax-related items. Analysts have criticized the company for not treating asset sales as one-time items in its reporting. The company argues asset sales are a regular part of its business, even if they are unpredictable.

In the latest period, daily oil-and-gas production fell about 1.9%, to four million barrels. This is the eighth consecutive quarter of year-over-year production drops for the company which, like other energy giants, continues to struggle with the lack of large, easily accessible pools of oil and with competition from state-run oil companies.

Exxon, which is based in Irving, Texas, said Thursday it will reduce its share buyback program to $3 billion in the coming quarter, the second-consecutive cut in share buybacks.

Despite the sharp decrease in profits, Chairman and CEO Rex Tillerson said in a statement the results "reflect continued strong operation performance."

Exploration and production earnings fell 25%, in part because of higher operating expenses overseas. But the U.S. portion grew 62% because of rising natural-gas prices.

Exxon's profits from refining plunged 94%. The narrowing price gap between cheaper U.S. produced crude and more pricey overseas oil appears to have hurt the company's refining margins more than anticipated, said Brian Youngberg, an analyst with Edward Jones, Mr. Youngberg said.

"You're just seeing these operating costs accelerating across the board," Mr. Youngberg said. "It's a challenging time for them."

Write to Tom Fowler at

Corrections & Amplifications Exxon's exploration-and-production earnings in the U.S. grew 62% from a year earlier in the second quarter. An earlier version of this article incorrectly put the growth at 32%.

Credit: By Tom Fowler

Subject: Petroleum industry; Financial performance; Corporate profits; Natural gas

Location: United States--US

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Aug 1, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1416222645

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1416222645?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Big Oil's Rodent Problem; Dismal Results From Exxon, Shell and BP Highlight Their Central Problem: They're Too Big to Grow

Author: Denning, Liam

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Aug 2013: n/a.

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Abstract: None available.

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The term "Big Oil" usually conjures up images of colossal rigs operating in high seas or suits cutting deals in a grand game of oil and geopolitics.

How about giant hamsters?

This week's quarterly results from three of the biggest names in oil--Exxon Mobil, Royal Dutch Shell and BP--provided dismal confirmation that they are running furiously just to stand still. And they are falling down on the wheel.

Big Oil's big dilemma is that every barrel pumped out of the ground has to be replaced with new reserves, unless companies want to shrink to nothing. If they want to increase production, they need to discover more than one barrel for every one pumped.

That is a huge task, especially for the likes of Exxon. It produced 1.6 billion barrels of oil equivalent last year. To put that in perspective, the global industry's average discovery between 2002 and 2011 was about 65 million barrels of oil equivalent, according to Wood Mackenzie. Little wonder that Exxon's 2012 production was only slightly higher than in 2003 and that its proved oil reserves were actually lower.

Exxon, like many of the majors, only belatedly bought into $100 oil being sustainable in the previous decade, and so underinvested in its reserves. It is now making up for that in spades: Capital expenditure is on pace to hit $41 billion this year. Meanwhile, Exxon's margins per barrel have taken a hit in recent years after the high-price acquisition of shale-gas giant XTO Energy, itself an attempt to boost reserves.

The resulting squeeze on cash flow explains why Exxon said Thursday it expects to cut its share-buyback program again in the third quarter, having slowed it already in the one just gone. Little wonder the stock dropped about 2%.

That is nothing compared to Shell, though, whose stock plunged more than 4% Thursday on a truly woeful set of results. Again, the strain of trying to maintain the pace of production and reserves weighed heavily.

In particular, Shell appears to have overreached in its big foray into North American shale to build reserves. That it had to take a write-down of $2.1 billion on these assets while oil flirts with $110 a barrel suggests it picked up some decidedly inferior assets in its shale grab. The oil major also abandoned its medium-term production target; a Big Oil rite-of-passage repeated so often it has become a cliché.

BP is another victim of the reach for growth. Russia, originally the oil major's supposed ticket to endless reserves, came back to bite BP in the second quarter.

After a long, tortuous process, BP's forays into Russia have ended up in part with it owning almost 20% of Kremlin-backed giant Rosneft. That is worth about $16 billion, equivalent to around 12% of BP's own market capitalization: significant exposure with little control. Weak profits from its Rosneft stake, due in part to foreign-exchange moves, helped push down BP's second-quarter underlying profit to 20% below the consensus forecast.

Scale is Big Oil's hallmark. But as low stock-price multiples relative to smaller exploration-and-production companies attest, investors aren't necessarily buying it these days. At a certain size, all that heft just slows you down on oil's never-ending treadmill.

Write to Liam Denning at liam.denning@wsj.com

Credit: Liam Denning

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Aug 1, 2013

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1416700131

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1416700131?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Shale-Boom Profits Bypass Big Oil; Shell, Exxon Came Late to the Party, Then Made Massive Investments

Author: Gilbert, Daniel; Scheck, Justin; Fowler, Tom

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Aug 2013: n/a.

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Abstract:

The Energy Information Administration said Thursday that exploration and production companies operating in the U.S. raised their oil reserves by nearly 3.8 billion barrels in 2011, the largest single-year increase since the government starting publishing the data in 1977. Shell has tried for months to boost the profitability of its U.S. shale assets. Since U.S. gas prices remain low, Shell said early this year that it would try to shift its North American production toward more profitable oil.

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Some of the world's biggest energy companies are struggling to make money from massive bets on the shale boom in North America, where deposits of oil and gas are proving abundant but not always profitable.

Royal Dutch Shell PLC, which has had a tough time coaxing crude oil from dense rock formations, said Thursday its shale holdings in the U.S. are worth $2.07 billion less than it had previously determined. The write-down helped push the Anglo-Dutch oil giant's second-quarter earnings down 60% from a year earlier. The company said it would explore selling some of its U.S. shale properties.

Exxon Mobil Corp., the world's largest publicly traded energy producer, is still feeling the effects of its plunge into U.S. shale gas in 2010, which left it with a big exposure to persistently low natural-gas prices.

Rising expenses and falling oil-and-gas production contributed to a 57% drop in quarterly earnings for the Irving, Texas, company. Its profit per barrel of oil and gas fell 23% from a year earlier.

Shares in both companies declined Thursday, with Shell's class A shares dropping more than 5% to $64.47 in trading on the New York Stock Exchange. Exxon's stock dropped a little more than 1% to close at $92.73.

U.S. oil production has soared to levels not seen in decades, and profits at some smaller energy companies have surged. But big international oil companies, which were late to exploit shale rocks, haven't capitalized on the boom in the same way.

Exxon and Shell have spent billions to acquire companies and drilling rights to shale discovered by others at a lower cost. Their sheer size--Exxon produces nearly as many barrels of crude a day as the entire state of Texas--also makes it harder for them to replace the reserves they deplete and increase their output.

As for shale, "they bought in late in the game, and it's hit or miss," said Ken Medlock, senior director of the Center for Energy Studies at Rice University in Houston. "Whether or not it pays off is going to be highly dependent on what happens to commodity prices."

Along with Chevron Corp., Exxon and Shell are investing at record levels to find and produce energy, aiming to spend a combined total of about $111 billion this year, 8% more than in 2012. They are adjusting to a world in which countries with some of the richest oil deposits--from Iraq to Mexico--have limited their access, adding to the difficulty of expanding production.

Exxon and Chevron are sticking to aggressive goals to increase their slumping production over the next four years, by about 14% and 26%, respectively, from 2012 levels.

But Shell said it would stop setting targets for how much oil and gas it hopes to pump and just focus on profits. "If we are solely focused on a volume-related target, we may make less profitable long-term investments," Simon Henry, Shell's chief financial officer, said in an interview.

In Big Oil's hunt to add to its reserves, North America emerged as a bright spot in recent years. Smaller companies like EOG Resources Inc. and Chesapeake Energy Corp. capitalized on drilling sideways through shale, breaking it up with a high-pressure stream of water, sand and chemicals, allowing oil and gas to flow.

The Energy Information Administration said Thursday that exploration and production companies operating in the U.S. raised their oil reserves by nearly 3.8 billion barrels in 2011, the largest single-year increase since the government starting publishing the data in 1977. The EIA now estimates the U.S. has about 29 billion barrels of oil that companies can recover at a profit, the most since 1985.

Natural-gas reserves also expanded to 348.8 trillion cubic feet, the EIA said, a 9.8% annual jump that ranks as the second-largest increase on record.

The boost in domestic oil production is providing a "major economic benefit" by reducing the amount of crude the U.S. has to import, according to U.S. Energy Secretary Ernest Moniz.

That hasn't necessarily translated into corporate profits, however.

Shell has tried for months to boost the profitability of its U.S. shale assets. Since U.S. gas prices remain low, Shell said early this year that it would try to shift its North American production toward more profitable oil.

The strategy hasn't panned out. Finding shale oil turned out to be tougher than finding gas, the company said. Its overall exploration and production operations in the Americas sustained a loss in the second quarter, partly because of higher costs. And, with current oil and gas prices, the business will likely continue losing money at least through the end of this year, Shell said.

Exxon, which spent $25 billion in 2010 to buy shale-gas specialist XTO Energy Inc., said an increase in natural-gas prices in the U.S. last quarter helped increase its domestic profits by 62% to just over $1 billion. But its XTO investment diluted its profits and isn't making up for the company's problems increasing oil-and-gas production around the globe; its overall production fell 1.9%, the eighth quarter in a row of year-on-year declines. Profits from producing energy dropped 25% in the quarter to $6.3 billion.

But the steep drop in Exxon's overall profit for the second quarter was due in part to a tough comparison; asset sales and tax breaks helped drive earnings to a record in 2012.

Chevron, which reports earnings Friday, has taken a more moderate approach to investing in shale resources in the U.S. and Canada. But late Thursday, Chevron said that a subsidiary had acquired drilling rights to 67,900 acres in a shale formation in Western Canada, adding to its holdings there. The company didn't disclose a purchase price.

Ryan Tracy contributed to this article.

Write to Daniel Gilbert at , Justin Scheck at and Tom Fowler at

Corrections & Amplifications Shell took a write-down of $2.07 billion related to North American shale assets in the second quarter. An earlier version of this article incorrectly put the write-down at $2.2 billion.

Credit: By Daniel Gilbert, Justin Scheck and Tom Fowler

Subject: Oil reserves; Petroleum industry; Natural gas reserves; Energy economics; Profits; Profitability; Natural gas; Petroleum production

Location: United States--US Texas North America

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: New York Stock Exchange--NYSE; NAICS: 523210; Name: Rice University; NAICS: 611310

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Aug 2, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1416424140

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1416424140?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Conoco Sells Oil-Sands Assets to Exxon for $720 Million;

Author: Sider, Alison

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Aug 2013: n/a.

ProQuest document link

Abstract:

ConocoPhillips reached a deal to sell an oil-sands leasehold in Canada to Exxon Mobil Corp. for about $720 million, continuing the company's efforts to sell assets worth billions of dollars.

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ConocoPhillips reached a deal to sell an oil-sands leasehold in Canada to Exxon Mobil Corp. for about $720 million, continuing the company's efforts to sell assets worth billions of dollars.

Exxon's Canadian subsidiary will take a 72.5% stake in the Clyden oil-sands leasehold, which consist of about 226,000 acres of undeveloped land near the southern edge of the Athabasca oil sands, about 275 miles northeast of Edmondton, Alberta. The rest of the leasehold being sold will go to Exxon affiliate Imperial Oil Ltd.

ConocoPhillips is in the process of selling noncore assets to focus on those with higher returns, such as fast-growing U.S. shale formations. So far, the company pegged expected sale proceeds at about $13.5 billion for 2012 and 2013.

If Canadian regulators approve the deal, the company said it expects to record an after-tax gain of about $450 million, likely in the third quarter.

ConocoPhillips currently holds roughly 1.1 million net acres of land in the Athabasca, containing the equivalent of about 16 billion barrels of crude, making it one of the biggest players in the region.

Raymond James analyst Pavel Molchanov said the sale was a relatively small one, but brings in cash ConocoPhillips needs to fund its capital program and dividend. The company is still weighing further sales in the region.

"Our world class oil sands assets have attracted significant interest from buyers around the world, and we are currently evaluating a number of offers for these assets," a ConocoPhillips spokeswoman said.

But the lack of a major pipeline that would link growing oil-sands production in Alberta to markets, and uncertainty about when such a pipeline will be built, has pushed down prices of Western Canadian crude. Marathon Oil Corp. had been looking to sell a stake in its Athabasca project, but the company announced in May that negotiations with a potential buyer fell through.

This is Exxon's second investment in the oil sands within the last year. In October, the company bought Canadian oil and gas producer Celtic Exploration Ltd. in a deal worth about $3.1 billion. In April, Exxon started production at its Kearl oil sands project in Alberta.

Credit: Alison Sider

Subject: Oil sands; Petroleum industry; Pipelines

Location: United States--US Canada

Company / organization: Name: ConocoPhillips Co; NAICS: 211111; Name: Celtic Exploration Ltd; NAICS: 211111; Name: Marathon Oil Corp; NAICS: 486110, 324110, 211111, 213112; Name: Imperial Oil Ltd; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Aug 8, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1418479691

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Looks to Sell Part of Iraqi Project to PetroChina

Author: Hassan Hafidh

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Aug 2013: n/a.

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Abstract:

AMMAN, Jordan--U.S. energy giant Exxon Mobil Corp. has asked Iraq if it can sell part of its stake in one of the country's largest oil fields to China's PetroChina Co., two people familiar with the matter said Wednesday.

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AMMAN, Jordan--U.S. energy giant Exxon Mobil Corp. has asked Iraq if it can sell part of its stake in one of the country's largest oil fields to China's PetroChina Co., two people familiar with the matter said Wednesday.

The request, which is subject to review by Iraq's cabinet before a sale process can begin, comes amid Baghdad's displeasure over Exxon's decision to strike separate exploration deals with the semiautonomous Kurdistan region in the country's north.

A deal with state-owned PetroChina would deepen China's investment in the Iraqi oil sector 10 years after a U.S.-led invasion ended Saddam Hussein's rule.

Exxon gave Baghdad formal notice that it wishes to sell less than half of its 60% stake in the West Qurna-1 oil field in southern Iraq to PetroChina, according to the people familiar with the move. Neither provided an estimated value for Exxon's stake. One of the people said the U.S. company intends to continue operating the project.

Exxon declined to comment. A PetroChina spokesman said the company, China's biggest oil producer, "intends to expand its overseas oil and gas investment."

Talk of a deal comes two weeks after PetroChina's parent company, China National Petroleum Corp., struck a separate cooperation pact with Exxon in Beijing to jointly invest in projects in China and overseas.

Exxon angered the Iraqi central government in 2011 by signing a deal with the Kurdistan region in northern Iraq. Baghdad has warned the oil company to choose between its deal in the south and the one in the north. The West Qurna-1 field has the potential to produce nearly three million barrels of crude a day, rivaling some the world's largest oil fields.

In 2009 Baghdad signed a series of contracts with international oil majors to boost Iraq's output to 12 million barrels a day by 2017, enough to make it the largest producing country in the world. Security and infrastructure setbacks have lowered expectations to nine million barrels a day by 2020.

Exxon and minority partner Royal Dutch Shell PLC, which holds a 15% stake in West Qurna-1, has continued to make progress in the $50 billion project. Currently the field produces 510,000 barrels a day and could hit 600,000 barrels a day by the end of this year.

The Iraqi cabinet would need to grant approval before Iraq's oil ministry allows Exxon to proceed with its selling plan. "That may take two weeks to obtain," one of the people familiar with the matter said.

Exxon was the first major oil company to sign petroleum contracts with the Kurdistan Regional Government, or KRG, despite Baghdad's threats to expel it from a contract in southern Iraq. Exxon signed a deal to develop six blocks with the KRG, which is feuding with the Arab-dominated central government over land and oil rights.

Last year, U.S. oil company Chevron Corp., France's Total SA and the oil-producing arm of Russia's Gazprom followed Exxon's lead by striking their own deals in Kurdistan. The KRG allows for production-sharing arrangements, which are more profitable for oil companies than the service contracts Baghdad offers.

The KRG and the federal government are at loggerheads over scores of oil deals that the Kurds signed with international oil companies. Baghdad believes that these deals are null and void because they haven't approved by the central government, while the KRG argues that they are in line with the new constitution.

Write to Hassan Hafidh at hassan.hafidh@wsj.com

Credit: Hassan Hafidh

Subject: Oil fields; Petroleum industry; Energy policy

Location: Jordan Baghdad Iraq United States--US Kurdistan China Iraq

People: Hussein, Saddam

Company / organization: Name: China National Petroleum Corp; NAICS: 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Aug 14, 2013

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1420356172

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1420356172?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Seeks To Sell Stake In Iraq Field To PetroChina

Author: Hassan Hafidh

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]15 Aug 2013: B.8.

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Abstract:

U.S. energy giant Exxon Mobil Corp. has asked Iraq if it can sell part of its stake in one of the country's largest oil fields to China's PetroChina Co., two people familiar with the matter said Wednesday.

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AMMAN, Jordan -- U.S. energy giant Exxon Mobil Corp. has asked Iraq if it can sell part of its stake in one of the country's largest oil fields to China's PetroChina Co., two people familiar with the matter said Wednesday.

The request, which is subject to review by Iraq's cabinet before a sale process can begin, comes amid Baghdad's displeasure over Exxon's decision to strike separate exploration deals with the semiautonomous Kurdistan region in the country's north.

A deal with state-owned PetroChina would deepen China's investment in the Iraqi oil sector 10 years after a U.S.-led invasion ended Saddam Hussein's rule.

Exxon gave Baghdad formal notice that it wishes to sell less than half of its 60% stake in the West Qurna-1 oil field in southern Iraq to PetroChina, according to the people familiar with the move. Neither provided an estimated value for Exxon's stake. One of the people said the U.S. company intends to continue operating the project.

Exxon declined to comment. A PetroChina spokesman said the company, China's biggest oil producer, "intends to expand its overseas oil and gas investment."

Talk of a deal comes two weeks after PetroChina's parent company, China National Petroleum Corp., struck a separate cooperation pact with Exxon in Beijing to jointly invest in projects in China and overseas.

Exxon angered the Iraqi central government in 2011 by signing a deal with the Kurdistan region in northern Iraq. Baghdad has warned the oil company to choose between its deal in the south and the one in the north. The West Qurna-1 field has the potential to produce nearly three million barrels of crude a day, rivaling some of the world's largest fields.

Exxon and minority partner Royal Dutch Shell PLC, which holds a 15% stake in West Qurna-1, has continued to make progress in the $50 billion project. Currently the field produces 510,000 barrels a day.

Credit: By Hassan Hafidh

Subject: Petroleum industry; Equity stake

Location: China Iraq

Company / organization: Name: China National Petroleum Corp; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 9178: Middle East; 9179: Asia & the Pacific; 8510: Petroleum industry

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.8

Publication year: 2013

Publication date: Aug 15, 2013

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1420428935

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1420428935?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Oil-Pipeline Cracks Evading Robotic 'Smart Pigs'; Probes used by Exxon and other companies aren't spotting flaws that cause massive spills.

Author: Fowler, Tom

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Aug 2013: n/a.

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In February, Exxon Mobil Corp. sent a small robotic device known as a "smart pig" through a 60-year-old oil pipeline in central Arkansas to find cracks or other problems. Pigs are programmed to search for cracks larger than a specific length and depth, but the tools sometimes miss defects that exceed those parameters, according to the November 2012 study by Kiefner and Associates Inc. and Det Norske Veritas, a Norwegian risk-management firm.

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In February, Exxon Mobil Corp. sent a small robotic device known as a "smart pig" through a 60-year-old oil pipeline in central Arkansas to find cracks or other problems.

The next month, a 22-foot section of the 858-mile-long Pegasus pipeline split open, spilling 5,000 barrels of crude into backyards and wetlands. The cause of the accident, according to a report Exxon filed with regulators last month: tiny cracks along the pipe's lengthwise seam. The torpedo-like robot didn't spot them, the company said this week.

Such ruptures are rare, but failures to identify small cracks are common, regulators and some industry experts say. Smart pigs are the linchpin of the industry's efforts to monitor pipes, but they aren't reliable for finding all serious flaws. And even when smart pigs do spot problems, analyzing the reams of data collected can take months.

Using smart pigs to find seam cracks is "as close to scientific as a roulette wheel," said Don Deaver, a former Exxon pipeline engineer who now works as a consultant. Still, probing the inside of a pipeline with such devices "is probably the number-one asset we have for pipeline integrity," he said.

Exxon says it follows federal guidelines for testing pipelines, including assessing the seams in old pipes. The detection failure in Arkansas "is a disappointment to us," said Karen Tyrone, vice president and operations manager for Exxon Mobil Pipeline Co. "We all in the industry want the tools to continue to improve."

The boom in U.S. oil production is straining America's network of more than 184,000 miles of pipelines carrying hazardous liquids. Traffic in liquid-fuel pipes increased more than 19% between 2011 and 2012, according to federal data.

Pipeline spills have risen sharply this year after two years of declines. More than 93,000 barrels have spilled so far, exceeding last year's total by 77%, according to federal records. The most common cause of liquid pipeline accidents since 2010 is internal corrosion, according to federal records.

The Association of Oil Pipe Lines defended the industry's record in a statement, saying it "is constantly working to harness new technologies and new ways of interpreting inspection results data to identify potential issues and repair them before they become a problem."

Pipeline operators use many tools to assess their systems, including aerial surveys and excavation for direct inspections. U.S. regulations require companies to examine their pipelines that traverse residential areas and environmentally sensitive regions at least every five years, using a smart pig or other method.

The surest way of finding flaws is to pump water into a pipe at high pressure. But so-called hydrostatic tests are expensive, provide just a snapshot of conditions, and in some cases can enlarge minor cracks that later cause failures. Sections of Exxon's Pegasus pipeline burst during a hydrostatic test in 2006 and had to be replaced.

The industry relies most heavily on smart pigs, so named for their sophisticated sensors and porcine squeal zipping through pipes. They accounted for 93% of inspections on hazardous-liquids pipe in 2012, according to federal data. The devices, propelled by flowing oil, probe with ultrasonic waves or a magnetic field.

Pipeline companies and federal regulators have spent tens of millions of dollars over the past decade improving the technology. But analyzing a smart-pig scan typically takes up to nine months, said Stefan Papenfuss, vice president of pipeline resources at Quest Integrity Group, a firm that helps companies survey pipelines.

"You can have an inspection in January but not have a full understanding of the condition of your pipeline until the following January," Mr. Papenfuss said. Acting on the information takes even longer.

Smart-pig scans sometimes fail to detect anomalies, according to studies performed for the U.S. Pipeline and Hazardous Materials Safety Administration last year. Pigs are programmed to search for cracks larger than a specific length and depth, but the tools sometimes miss defects that exceed those parameters, according to the November 2012 study by Kiefner and Associates Inc. and Det Norske Veritas, a Norwegian risk-management firm.

Among the hardest flaws to detect are tiny cracks that form in seams running the length of a pipe, including ones called hook cracks that doomed Exxon's Pegasus pipeline. Such defects are known to occur in pipe that was fused with a low-frequency current, a process that hasn't been used since the 1970s but makes up almost a third of the nation's network of hazardous-liquids pipe.

The cracks can remain benign for decades and may never fail. But internal pressure can gradually widen them.

In April 2012, an Exxon oil pipeline in Louisiana split along a seam with inferior electrical welds. The 17-foot-wide rupture leaked 2,800 barrels.

The same kinds of cracks were blamed in the Arkansas spill in March. Exxon said it did not receive preliminary results of the smart-pig inspection until shortly after the spill. But even if it had, "There were no indications of a problem or anything in need of repair in that section of pipe from that preliminary analysis," said Ms. Tyrone.

Other companies have also had trouble finding flaws.

Enbridge Inc., which operates North America's largest network of liquids pipelines, says it boosted pipeline-integrity efforts after one of its pipelines ruptured along a seam in 2010, spilling 21,000 barrels of crude and polluting Michigan's Kalamazoo River. Regulators cited flaws in smart-pig technology among the reasons for the accident, which Enbridge estimates will cost it more than $1 billion in cleanup expense and fines.

Enbridge says it has started to conduct several kinds of tests on its pipelines more frequently. It also regularly digs up sections of pipe after tests and compares the data gathered in physical studies of the pipe to better calibrate the testing equipment.

But accurately assessing the risk from flaws like hook cracks remains a challenge because of distortions in the metal close to the seams, said Trevor Grams, director of infrastructure integrity for Enbridge's liquids pipelines division.

"Because the cracks are typically along the line of the weld," he said, "there's more of a challenge for the technology."

Write to Tom Fowler at tom.fowler@wsj.com and Daniel Gilbert at daniel.gilbert@wsj.com

Credit: Tom Fowler

Subject: Pipelines; Petroleum industry; Petroleum production; Hogs

Location: United States--US Arkansas

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Aug 16, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1425301961

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1425301961?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Pennsylvania Charges Exxon Mobil Unit in Spill

Author: Fowler, Tom

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Sep 2013: n/a.

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Exxon has already reached a settlement with the U.S. Justice Department and Environmental Protection Agency over the same incident, agreeing in July to pay a $100,000 penalty and take steps to prevent future drilling wastewater spills.

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Pennsylvania officials filed criminal charges against an Exxon Mobil Corp. subsidiary on Tuesday, claiming that it violated state environmental laws by spilling more than 50,000 gallons of drilling wastewater into a stream in 2010.

The discharge in dispute occurred in November 2010 at a drilling site in Pennsylvania's Lycoming County, where Exxon subsidiary XTO Energy was drilling two natural-gas wells, Pennsylvania Attorney General Kathleen Kane said in a news release. It was caused by a valve on a wastewater storage tank that was left open, according to the release. Exxon has called it an accident.

XTO was charged with five counts of unlawful conduct under Pennsylvania's Clean Streams Law and three counts of unlawful conduct under the Solid Waste Management Act. The release didn't describe the possible penalties the charges carried. Pennsylvania officials could not be reached for comment Tuesday evening.

Exxon vowed to fight the charges in a statement, calling them unwarranted.

"The criminal charges filed by the Attorney General are unprecedented and an abuse of prosecutorial discretion," the company said. "There was no intentional, reckless, or negligent misconduct by XTO. The incident didn't result in significant or lasting environmental harm."

Exxon has already reached a settlement with the U.S. Justice Department and Environmental Protection Agency over the same incident, agreeing in July to pay a $100,000 penalty and take steps to prevent future drilling wastewater spills. The EPA previously estimated the measures would cost Exxon $20 million. The company admitted no wrongdoing as part of the settlement.

Credit: Tom Fowler

Subject: Attorneys general; Environmental protection; Litigation

Location: Pennsylvania

People: Kane, Kathleen

Company / organization: Name: XTO Energy Inc; NAICS: 211111; Name: Environmental Protection Agency--EPA; NAICS: 924110; Name: Department of Justice; NAICS: 922130

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Sep 10, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1431215414

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Brazilian Oil Field Draws Asian Bidders, but Not Exxon

Author: Lyons, John

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Sep 2013: n/a.

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Abstract: None available.

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RIO DE JANEIRO--Major U.S. producers Exxon Mobil Corp. and Chevron Corp. and U.K oil giant BP PLC are sitting out Brazil's first auction of massive deep-water finds, reflecting the changing landscape of the oil business and Brazil's government-heavy strategy for developing the fields.

The potential bidders for the Libra field, announced late Thursday, include Royal Dutch Shell PLC, France's Total SA and Portugal's Galp Energia. But the list is dominated by Asian state-run firms. In addition to energy companies from India and Malaysia, China's Cnooc Ltd., China National Petroleum Corp. and China Petroleum & Chemical Corp., also known as Sinopec, said they may bid. Sinopec will participate via its joint venture with Spain's Repsol SA.

The decision by Exxon, the world's biggest oil company, and several other oil majors to skip the auction stands in contrast to the excitement over the deep-water oil strikes six years ago. They were the biggest finds in the hemisphere in decades--so big that Brazilian leaders made it the engine of a national strategy to lift the nation into the developed world.

But the oil market has changed. Back when Brazil found the oil, some experts were fretting that the world's oil supply was destined to peak as easy-to-reach oil became scarce. But technologies such as fracking opened up new oil frontiers. Also, posing an alternative to Brazil, regions such as Africa have increasingly attracted oil prospecting. Many in the industry are expecting long-closed Mexico to invite in more oil firms.

But the biggest factor is Brazil's state-dominated strategy for developing the field that puts the squeeze on profits that oil firms can make, oil experts say. The rules for the Libra field call for an upfront fee of $7 billion, a dominant role for Brazil's state-owned oil firm and buying equipment locally. As a result, the venture is more attractive to big state-oil companies such as China's Cnooc, which are focused on staking claims to barrels of reserves rather than turning big profits.

"The government can't say this was a surprise because the rules were designed to attract Chinese companies," said Adriano Pires, a Brazilian oil and infrastructure consultant. "The strategy seems to be use, Brazilian manpower and technology and get the state oil firms to pay for it."

State-owned Petróleo Brasileiro SA, or Petrobras, is considered among the world's best at deep-water oil drilling. But oil majors bring a wealth of technological and management expertise as well. Not having their broad participation in Libra could backfire if it turns out that the deep-water oil, which is located beneath layers of seabed and a tricky layer of salt, is harder to get than is expected.

In a statement, Exxon said it looks for opportunities "where we can leverage our experience and technology," and that it looks forward "to evaluating [other] potential opportunities in Brazil."

Brazil's left-wing government has had a run of infrastructure auctions for trains, airports and other projects that drew fewer top-tier companies than expected. A much-heralded plan for a high-speed rail line between São Paulo and Rio has been delayed so many times that many experts suspect it will never be built. Rules capping ticket prices risk making the project unprofitable.

All told, 11 oil companies signed up to bid on a stake in the Libra field and its estimated eight billion to 12 billion barrels of oil. The companies who have signed up are not required to place bids in the auction, which is scheduled for late October.

Political risks hang over Brazil's oil industry. Chevron executives were angered after Brazilian authorities sued the company for $20 billion and threatened to jail its local managers following a relatively small leak and quick cleanup at an offshore field it operates. Chevron ultimately settled for less than $50 million. But the episode sent a signal that minor complications will have grave consequences for firms, raising the cost of doing business in Brazil.

Meantime, allegations that the U.S. National Security Agency was spying on Petrobras raised political issues for U.S. companies seeking to participate in Libra. In nationalistic Brazil, a U.S. company could be open to suspicions that it relied on espionage to make its bids. U.S. intelligence officials have vehemently denied ever giving information to corporations to help them gain a commercial advantage.

Underscoring the political sensitivity, at least one Brazilian union has called for the auction round to be canceled in the wake of the NSA spying allegations.

Development costs for the Libra field are expected to be enormous--more than 400 billion reais ($181 billion) over the next 35 years, according to Brazil's oil regulator. The means only the largest oil companies are expected to bid.

Analysts at Credit Suisse said in a report that interest in the auction was lower expected, in part because oil firms are looking at opportunities in West Africa, the Gulf of Mexico and U.S. shale gas.

"Brazil does face competition with other geographies in terms of resource," the investment bank said.

Petrobras's mandated participation could also be a deterrent. The state-owned firm will automatically become a partner with the winning bidder, as it is guaranteed at least a 30% financial stake in the field and status as operator.

Petrobras also registered to participate in the auction, indicating it may seek more than the 30% minimum stake.

Write to John Lyons at john.lyons@wsj.com and Jeff Fick at jeff.fick@wsj.com

Credit: John Lyons

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Sep 20, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1434144430

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1434144430?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon to Offer Benefits to Married Same-Sex Couples in U.S.; Company Says It Didn't Alter Policy; U.S. Definition of Marriage Changed

Author: Fowler, Tom

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Sep 2013: n/a.

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New York State Comptroller Thomas DiNapoli, who for four years has sponsored a shareholder resolution asking Exxon to include same-sex marriage benefits, praised the decision.

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Exxon Mobil Corp. said it would begin offering benefits to legally married same-sex couples in the U.S. beginning Tuesday.

For years the company has been criticized by gay activists and some shareholders for not following the example of other large U.S. corporations by extending benefits to gay couples.

The company didn't change its policies, said spokesman Alan Jeffers, but is following federal law. He said the government's definition of "marriage" and "spouse" changed after the U.S. Supreme Court decision in June striking down the Defense of Marriage Act, which had allowed states to refuse to recognize same-sex marriages granted in other states.

"The decision is consistent with the direction of most U.S. government agencies, including the Department of Homeland Security, Treasury and the IRS," Mr. Jeffers said. "Legal marriages are determined by the laws of the state or country where the marriage took place."

The policy will cover the company's 77,000 employees and retirees in the U.S. Mr. Jeffers said the company didn't have an estimate for how many of those employees and retirees were in same-sex marriages.

New York State Comptroller Thomas DiNapoli, who for four years has sponsored a shareholder resolution asking Exxon to include same-sex marriage benefits, praised the decision.

"Corporate discrimination in any form is simply not good business," Mr. DiNapoli said in a statement.

Write to Tom Fowler at tom.fowler@wsj.com

Credit: Tom Fowler

Subject: Same sex marriage; Gays & lesbians

Location: United States--US

People: DiNapoli, Thomas P

Company / organization: Name: Internal Revenue Service--IRS; NAICS: 921130; Name: Department of Homeland Security; NAICS: 922120; Name: Supreme Court-US; NAICS: 922110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Sep 27, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1437231492

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Somalia Seeks to Restart Oil Exploration; Preliminary Talks Held With Shell, Exxon, BP, Others

Author: Flynn, Alexis

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Oct 2013: n/a.

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Somali officials have discussed having Royal Dutch Shell PLC, Exxon Mobil Corp., BP PLC, ConocoPhillips, Eni SpA and Chevron Corp. return to the East African nation after more than two decades of violence drove major oil producers off, Abdullah Haider, an adviser in Somalia's ministry of natural resources, told a conference here Monday.

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LONDON--Somalia's central government is in talks with some of the world's biggest energy companies in an attempt to restart oil exploration in the war-torn country, an adviser to the government said Monday.

Somali officials have discussed having Royal Dutch Shell PLC, Exxon Mobil Corp., BP PLC, ConocoPhillips, Eni SpA and Chevron Corp. return to the East African nation after more than two decades of violence drove major oil producers off, Abdullah Haider, an adviser in Somalia's ministry of natural resources, told a conference here Monday.

"Most of the discussions are going well," he said.

A number of big oil companies signed concessions in Somalia before the country descended into civil war in 1991. The instability prompted the companies to suspend onshore and offshore exploration; they say their contracts remain valid since it has been impossible to conduct activity in the country.

Somalia last year transitioned to its first permanent government in years, and the internationally recognized central government is trying to rebuild Somalia's economy, with oil as a cornerstone.

Recent, large oil and natural gas discoveries elsewhere in East Africa make Somalia attractive for oil explorers. But so far, no large companies have committed to returning to the country, which is struggling to contain terrorist group al-Shabaab and is plagued by tensions between its central and regional governments.

Shell said talks with the government of Somalia "are of a preliminary and exploratory nature. Any future progress would be dependent on advancing discussions as well as progress on the security and operating environment in and surrounding Somalia."

BP "had some discussions" about Somalia concessions, a spokesman said. Eni said its chief executive met with Somalia's president last month. Exxon and Conoco declined to comment. Chevron spokespeople weren't immediately able to comment.

A number of small companies have signed oil-exploration deals with regional authorities in Somalia, raising tensions with the central government. The only company to sign an agreement with the central government is private startup Soma Oil & Gas Ltd., which is conducting early-stage data collection, its chief executive, Robert Sheppard, said in an interview last month.

Credit: Alexis Flynn

Subject: Petroleum industry; Energy industry; Oil exploration

Location: Somalia

Company / organization: Name: Chevron Corp; NAICS: 324110, 211111; Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Eni SpA; NAICS: 324110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Oct 7, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United Stat es, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1439843932

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1439843932?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon's Port in Washington's Storm; If Relief on the Debt Ceiling Proves Fleeting, Energy Investors Should Consider Hunkering Down With an Unloved Stock: Exxon Mobil's

Author: Denning, Liam

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Oct 2013: n/a.

ProQuest document link

Abstract:

Compare that with an exuberant E&P sector that, on J.P. Morgan Chase's estimates, is carrying an average net debt load of 2.2 times 2013 Ebitda and looks set to outspend cash flow by 28% this year.

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If the storm hits, it is better to be on a supertanker than a speedboat.

Despite signs Thursday of an apparent thaw, the risk of a showdown on the U.S. debt ceiling, even if deferred by some weeks, remains. Amid that, energy investors should consider switching away from nimble exploration-and-production stocks over to Exxon Mobil.

The U.S. underwent a dress rehearsal for Washington's current crisis back in 2011. In early August of that year, Standard & Poor's cut the country's triple-A credit rating by a notch, in part because of political gridlock. In the run-up to that, Exxon and the E&P sector had tracked each other closely, both up around 15% or so for the year by late July 2011.

After that, though, the major and the minnows diverged sharply. By the start of October, the E&P sector had plunged nearly 40%, while Exxon had lost 16%, slightly beating the S&P 500. E&P stocks ended 2011 down 10% while Exxon had gained 16%, against a market that was flat overall.

Today, Exxon is down slightly so far this year against a 24% gain for E&P stocks and 18% for the S&P 500.

One difference is that natural-gas prices, which have a big effect on E&P stocks, aren't high but also don't look set to collapse as they did in late 2011. In addition, Exxon has boosted its capital expenditure and cut its share buybacks this year, weighing on the stock.

Still, Exxon's lackluster performance this year has left it looking cheap relative to both the market and its smaller E&P rivals. And if a debt limit debacle rears up, what will matter most is this: Exxon retains a triple-A rating, and net debt at the end of June was equivalent to about one-fifth of forecast 2013 earnings before interest, taxes, depreciation and amortization.

Compare that with an exuberant E&P sector that, on J.P. Morgan Chase's estimates, is carrying an average net debt load of 2.2 times 2013 Ebitda and looks set to outspend cash flow by 28% this year. Built for speed, yes, but not for big waves.

Write to Liam Denning at

Credit: By Liam Denning

Subject: International finance; Stocks; Debt restructuring; Financial performance

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Standard & Poors Corp; NAICS: 541519, 511120, 523999, 561450

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Oct 10, 2013

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1440993582

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1440993582?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Energy Industry's Odd Couple: Lee Raymond and Aubrey McClendon; Former Exxon Mobil CEO Participates in Venture Headed by Ex-Chairman of Chesapeake

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Oct 2013: n/a.

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Abstract:

Lee Raymond, who was famously tightfisted as chief executive of Exxon Mobil Corp., now has a seat at the table in a venture headed by Aubrey McClendon, whose aggressive spending hastened his exit as chairman at Chesapeake Energy Corp. Mr. Raymond has emerged as a director alongside Mr. McClendon in American Energy Ohio Holdings LLC, a closely held company that has raised $1.35 billion for Mr. McClendon's new firm, American Energy Partners LP, according to a regulatory filing Wednesday triggered by the fundraising.

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It may be the U.S. energy industry's oddest couple: Lee Raymond, who was famously tightfisted as chief executive of Exxon Mobil Corp., now has a seat at the table in a venture headed by Aubrey McClendon, whose aggressive spending hastened his exit as chairman at Chesapeake Energy Corp.

Mr. Raymond has emerged as a director alongside Mr. McClendon in American Energy Ohio Holdings LLC, a closely held company that has raised $1.35 billion for Mr. McClendon's new firm, American Energy Partners LP, according to a regulatory filing Wednesday triggered by the fundraising.

The extent of Mr. Raymond's participation isn't clear; he declined to comment, as did American Energy.

But his reputation for tough governance and devotion to return on capital could check Mr. McClendon's free-spending ways and tolerance for risk that at times rankled Chesapeake shareholders and eventually led to his ouster.

Experts said it could also lend credibility to the new venture, which is wildcatting in Ohio's Utica Shale.

Mr. Raymond's participation in Mr. McClendon's endeavor isn't entirely out of the blue. The Energy & Minerals Group, an investment firm run by Mr. Raymond's son, John Raymond, is the biggest equity investor in American Energy Partners. John Raymond is listed alongside his father and Mr. McClendon as a director of the holding company's five-member board. Of the two remaining directors, one is affiliated with Energy & Minerals, and the other with First Reserve Corp., which contributed equity funding.

"Lee Raymond brings discipline, and a comfort level for the investor base that the capital is well watched over," said Dan Pickering, co-president of the investment bank Tudor, Pickering, Holt & Co. "You don't retire from the CEO role at Exxon and do small things."

Under Mr. McClendon, Chesapeake acquired drilling rights to more than a million acres in the Utica. Now his exploration company, formed in April, has returned there, buying acreage for $284.3 million in August from EnerVest Ltd. and its affiliate, EV Energy Partners LP, people familiar with the matter have said.

Mr. McClendon has touted the Utica as the "biggest thing economically to hit Ohio, since maybe the plow." Skeptics say the Utica's prospects remain uncertain.

Lee Raymond, 75 years old, helped create the modern Exxon by engineering its $82 billion merger with Mobil Corp. in 1999. He made capital discipline a hallmark of his 12 years at the helm of America's biggest oil producer before leaving in 2006. Since then, his main public role has been as J.P. Morgan Chase & Co.'s lead director.

The U.S. energy business has changed profoundly since Mr. Raymond left Exxon, as companies like Chesapeake embraced hydraulic fracturing to unlock oil and gas from shale-rock formations. Mr. McClendon, regarded by many in the industry as a visionary, co-founded Chesapeake in 1989 and built it into the country's second-biggest natural-gas producer after Exxon.

But the company's spending often exceeded cash flow by billions of dollars, leaving it vulnerable when natural-gas prices sank to decade lows in 2012. The ensuing cash shortfall contributed to Mr. McClendon's ouster earlier this year.

Still, Mr. McClendon, 54, hasn't struggled to find investors, raising a total of about $1.7 billion, including $400 million in debt.

Write to Daniel Gilbert at

Credit: By Daniel Gilbert

Subject: Petroleum industry; Appointments & personnel changes; Energy industry; Natural gas

Location: Ohio United States--US

Company / organization: Name: First Reserve Corp; NAICS: 523920; Name: Energy Partners Ltd; NAICS: 324110; Name: EV Energy Partners LP; NAICS: 211111; Name: Energy & Minerals Group; NAICS: 523910; Name: American Energy Partners LP; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Oct 17, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1442506013

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1442506013?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Earnings: Investors to Scan Output Figures on Thursday; Production Declines and Narrower Profit Margins Unlikely to Improve Until 2015

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Oct 2013: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. Chief Executive Rex Tillerson has pledged that the company will boost its bottom line along with oil and gas production, but major progress looks unlikely this year or next.

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Exxon Mobil Corp. Chief Executive Rex Tillerson has pledged that the company will boost its bottom line along with oil and gas production, but major progress looks unlikely this year or next.

Big bets on Iraqi oil and U.S. natural gas have yet to pay off, testing the patience of shareholders. When the company releases third-quarter earnings on Thursday, investors will be watching to see if Exxon's output and profit margins have stemmed their declines.

"2015 is going to be a pretty impressive year for production," said Wells Fargo analyst Roger Read. "In the near term, there isn't a lot they can do."

The company plans to add the equivalent of a million new barrels of oil a day by 2017, projecting that the increased flow will improve profit. But much of that new supply is at least two years away.

Production in the second quarter was down 7.3% from the same period two years earlier. The trend has weighed on the oil company's shares, which are roughly where they were at the start of this year. That has frustrated management, according to analysts who have spoken with executives. Exxon's shares fell 12 cents to close at $88.81 Wednesday on the New York Stock Exchange.

Mr. Tillerson in March told analysts he was unhappy with Exxon's profit per barrel. "We know we've got to do better than that, and we can do better than that," he said.

The Irving, Texas, company's stock-market performance has been outmatched by smaller rival Chevron Corp., whose fatter profit margins have helped lift its stock 10% this year.

Exxon has dialed back spending on less-profitable operations like drilling for gas in the U.S., which pulls down production. The company has explored selling part of its stake in an Iraqi oil field, and analysts say a sale is likely. An Exxon spokesman declined to comment.

The company's biggest challenge is to find new, untapped deposits of oil and gas that will more than make up for the natural declines in its existing wells--and to do it without sacrificing earnings. Among its queue of projects: a platform to extract oil from the ice-choked Sea of Okhotsk off the Russian coast and massive plants in Papua New Guinea and Australia to chill natural gas into liquid form for export.

The potential payoff could be huge if Exxon and its partners don't exceed their budgets. For now, the company is spending at the highest rate in its history, investing more than $100 billion since 2011, with much of it going to multiyear projects that have yet to generate a profit.

That heavy spending has left Exxon with less spare cash, a source of investor frustration. The company spent $20 billion in 2011 and 2012 buying its own shares, which tends to raise their value by increasing their scarcity.

Exxon's priority for its cash, after paying for operations, is to raise its dividends, as the company has done for 25 years. With less cash left over, the budget for buying shares was lowered to $3 billion in the third quarter. Some analysts expect that could drop to $2 billion a quarter while the company ramps up spending on projects with long lead times.

Others believe that Exxon is on the cusp of turning things around.

"I think we're in the trough right now," said Allen Good, a Morningstar Inc. analyst, adding that it could take another year to show meaningful improvement.

Even if Exxon delivers, higher production isn't likely to be as profitable as it used to be, given the higher costs of getting oil and gas from the ground. "Those returns are going to be lower than they have been historically because the era of cheap oil is over," Mr. Good said.

Write to Daniel Gilbert at

Credit: By Daniel Gilbert

Subject: Petroleum industry; Corporate profits; Energy economics; Executives; Natural gas; Profit margins

Location: United States--US

People: Tillerson, Rex W

Company / organization: Name: Chevron Corp; NAICS: 324110, 211111; Name: Wells Fargo & Co; NAICS: 522110, 551111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: New York Stock Exchange--NYSE; NAICS: 523210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Oct 30, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1447010412

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1447010412?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon: A Tiger That Doesn't Change Its Stripes; Rewards of Consistency and Capital Discipline Are Enduring for Exxon Investors

Author: Jakab, Spencer

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Oct 2013: n/a.

ProQuest document link

Abstract:

Over the past five years, the energy giant's share price has lagged 46 percentage points behind a leading exchange-traded fund used to gain exposure to the oil-and-gas sector--quite a bit, considering Exxon is its largest holding.

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Hoping visitors simply wouldn't notice, a Chinese zoo swapped its lion for a dog this summer. Owners of Exxon Mobil Corp. could be forgiven for thinking the energy giant has replaced the tiger in its tank with a pussycat.

Over the past five years, the energy giant's share price has lagged 46 percentage points behind a leading exchange-traded fund used to gain exposure to the oil-and-gas sector--quite a bit, considering Exxon is its largest holding. Thursday's third-quarter results aren't likely to help much if income from refining and marketing continues to sag.

During the second quarter, those so-called downstream earnings collapsed to $396 million, from $6.64 billion a year earlier. Tepid results earlier this week from Valero Energy Corp., a pure-play on that sector, don't bode well. Analysts have cut their expectations for Exxon's third-quarter earnings by about 8% in just the past month, to $1.82 a share. It earned $2.09 a year earlier.

Exxon's problem is growth or, rather, lack thereof. Management is targeting volume increases of just 2% to 3% a year in its exploration-and-production, or upstream, output. This has lagged behind expectations in recent years.

There's a silver lining, though: Through booms and busts, Exxon has used cash that might have gone to juicing output to reward shareholders. The sums are impressive: some $327 billion in payouts since oil prices bottomed in 1999--about two-thirds through share buybacks and the remainder from dividends. That's enough to buy rival BP PLC twice and have plenty of change left over.

What do investors get for such consistency? Recent subpar share-price performance aside, Exxon earns superior economic returns of the sort valued by long-term shareholders.

Its average return on invested capital over the past five years is 25.3%--well ahead that of its closest rival, Chevron Corp. That is about double the returns earned by Europe's four big oil companies, Total SA, BP, Royal Dutch Shell PLC and ENI SpA. In other words, Exxon has reinvested fewer dollars but earned far more on them.

Oil prices and refining margins rise and fall. The rewards of consistency and capital discipline across those cycles are hard to recognize up close. With a little perspective, though, Exxon looks every bit the top dog.

Credit: Spencer Jakab

Subject: Petroleum industry; Investment policy

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Total SA; NAICS: 447190, 324110, 211111; Name: Valero Energy Corp; NAICS: 486210, 324110, 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Oct 30, 2013

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1447010544

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1447010544?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon Earnings: Investors to Watch for Clues to Output; Production Declines and Narrower Profit Margins Unlikely to Improve Until 2015

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 Oct 2013: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. Chief Executive Rex Tillerson has pledged that the company will boost its bottom line along with oil and gas production, but major progress looks unlikely this year or next.

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Exxon Mobil Corp. Chief Executive Rex Tillerson has pledged that the company will boost its bottom line along with oil and gas production, but major progress looks unlikely this year or next.

Big bets on Iraqi oil and U.S. natural gas have yet to pay off, testing the patience of shareholders. When the company releases third-quarter earnings on Thursday, investors will be watching to see if Exxon's output and profit margins have stemmed their declines.

"2015 is going to be a pretty impressive year for production," said Wells Fargo analyst Roger Read. "In the near term, there isn't a lot they can do."

The company plans to add the equivalent of a million new barrels of oil a day by 2017, projecting that the increased flow will improve profit. But much of that new supply is at least two years away.

Production in the second quarter was down 7.3% from the same period two years earlier. The trend has weighed on the oil company's shares, which are roughly where they were at the start of this year. That has frustrated management, according to analysts who have spoken with executives. Exxon's shares fell 12 cents to close at $88.81 Wednesday on the New York Stock Exchange.

Mr. Tillerson in March told analysts he was unhappy with Exxon's profit per barrel. "We know we've got to do better than that, and we can do better than that," he said.

The Irving, Texas, company's stock-market performance has been outmatched by smaller rival Chevron Corp., whose fatter profit margins have helped lift its stock 10% this year.

Exxon has dialed back spending on less-profitable operations like drilling for gas in the U.S., which pulls down production. The company has explored selling part of its stake in an Iraqi oil field, and analysts say a sale is likely. An Exxon spokesman declined to comment.

The company's biggest challenge is to find new, untapped deposits of oil and gas that will more than make up for the natural declines in its existing wells--and to do it without sacrificing earnings. Among its queue of projects: a platform to extract oil from the ice-choked Sea of Okhotsk off the Russian coast and massive plants in Papua New Guinea and Australia to chill natural gas into liquid form for export.

The potential payoff could be huge if Exxon and its partners don't exceed their budgets. For now, the company is spending at the highest rate in its history, investing more than $100 billion since 2011, with much of it going to multiyear projects that have yet to generate a profit.

That heavy spending has left Exxon with less spare cash, a source of investor frustration. The company spent $20 billion in 2011 and 2012 buying its own shares, which tends to raise their value by increasing their scarcity.

Exxon's priority for its cash, after paying for operations, is to raise its dividends, as the company has done for 25 years. With less cash left over, the budget for buying shares was lowered to $3 billion in the third quarter. Some analysts expect that could drop to $2 billion a quarter while the company ramps up spending on projects with long lead times.

Others believe that Exxon is on the cusp of turning things around.

"I think we're in the trough right now," said Allen Good, a Morningstar Inc. analyst, adding that it could take another year to show meaningful improvement.

Even if Exxon delivers, higher production isn't likely to be as profitable as it used to be, given the higher costs of getting oil and gas from the ground. "Those returns are going to be lower than they have been historically because the era of cheap oil is over," Mr. Good said.

Write to Daniel Gilbert at

Credit: By Daniel Gilbert

Subject: Petroleum industry; Corporate profits; Energy economics; Executives; Natural gas; Profit margins

Location: United States--US

People: Tillerson, Rex W

Company / organization: Name: Chevron Corp; NAICS: 324110, 211111; Name: Wells Fargo & Co; NAICS: 522110, 551111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: New York Stock Exchange--NYSE; NAICS: 523210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Oct 31, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1447023042

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1447023042?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Investors to Watch for Clues to Exxon Output

Author: Gilbert, Daniel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]31 Oct 2013: B.8.

ProQuest document link

Abstract:

Exxon Mobil Corp. Chief Executive Rex Tillerson has pledged that the company will boost its bottom line along with oil and gas production, but major progress looks unlikely this year or next.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. Chief Executive Rex Tillerson has pledged that the company will boost its bottom line along with oil and gas production, but major progress looks unlikely this year or next.

Big bets on Iraqi oil and U.S. natural gas have yet to pay off, testing the patience of shareholders. When the company releases third-quarter earnings on Thursday, investors will be watching to see if Exxon's output and profit margins have stemmed their declines.

"2015 is going to be a pretty impressive year for production," said Wells Fargo analyst Roger Read. "In the near term, there isn't a lot they can do."

The company plans to add the equivalent of a million new barrels of oil a day by 2017, projecting that the increased flow will improve profit. But much of that new supply is at least two years away.

Production in the second quarter was down 7.3% from the same period two years earlier. The trend has weighed on the oil company's shares, which are roughly where they were at the start of this year. That has frustrated management, according to analysts who have spoken with executives. Exxon's shares fell 12 cents to close at $88.81 Wednesday on the New York Stock Exchange.

Mr. Tillerson in March told analysts he was unhappy with Exxon's profit per barrel. "We know we've got to do better than that, and we can do better than that," he said.

The Irving, Texas, company's stock-market performance has been outmatched by smaller rival Chevron Corp., whose fatter profit margins have helped lift its stock 10% this year.

Exxon has dialed back spending on less-profitable operations like drilling for gas in the U.S., which pulls down production. The company has explored selling part of its stake in an Iraqi oil field, and analysts say a sale is likely. An Exxon spokesman declined to comment.

The company's biggest challenge is to find new, untapped deposits of oil and gas that will more than make up for the natural declines in its existing wells -- and to do it without sacrificing earnings. Among its queue of projects: a platform to extract oil from the ice-choked Sea of Okhotsk off the Russian coast and massive plants in Papua New Guinea and Australia to chill natural gas into liquid form for export.

The potential payoff could be huge if Exxon and its partners don't exceed their budgets. For now, the company is spending at the highest rate in its history, investing more than $100 billion since 2011, with much of it going to multiyear projects that have yet to generate a profit.

That heavy spending has left Exxon with less spare cash, a source of investor frustration. The company spent $20 billion in 2011 and 2012 buying its own shares, which tends to raise their value by increasing their scarcity.

Exxon's priority for its cash, after paying for operations, is to raise its dividends, as the company has done for 25 years. With less cash left over, the budget for buying shares was lowered to $3 billion in the third quarter. Some analysts expect that could drop to $2 billion a quarter while the company ramps up spending on projects with long lead times.

Others believe that Exxon is on the cusp of turning things around.

"I think we're in the trough right now," said Allen Good, a Morningstar Inc. analyst, adding that it could take another year to show meaningful improvement.

Even if Exxon delivers, higher production isn't likely to be as profitable as it used to be, given the higher costs of getting oil and gas from the ground. "Those returns are going to be lower than they have been historically because the era of cheap oil is over," Mr. Good said.

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Credit: By Daniel Gilbert

Subject: Petroleum industry; Corporate profits; Energy economics; Executives; Natural gas; Profit margins; Petroleum production

Location: United States--US

People: Tillerson, Rex W

Company / organization: Name: Chevron Corp; NAICS: 324110, 211111; Name: Wells Fargo & Co; NAICS: 522110, 551111; Name: New York Stock Exchange--NYSE; NAICS: 523210; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 9190: United States; 8510: Petroleum industry

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.8

Publication year: 2013

Publication date: Oct 31, 2013

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1447084157

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1447084157?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Mobil Profit Down 18% on Refining Weakness; Downstream Margin Pressure Masks Upstream Growth

Author: Stynes, Tess

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 Oct 2013: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. on Thursday said its third-quarter earnings fell 18%, as profits at its downstream segment plunged on significantly weaker refining margins, masking growth at its exploration and production business.

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Exxon Mobil Corp. on Thursday said its third-quarter earnings fell 18%, as profits at its downstream segment plunged on significantly weaker refining margins, masking growth at its exploration and production business.

Exxon Mobil reported net income of $7.87 billion, or $1.79 a share, down from $9.57 billion, or $2.09 a share, a year earlier. Revenue fell 2.4% to $112.37 billion.

Analysts polled by Thomson Reuters recently expected a per-share profit of $1.77 and revenue of $107.39 billion.

The world's largest publicly traded oil company is also the largest natural gas producer in the U.S., since its $25 billion acquisition of XTO Energy Inc. in 2010. Exxon has added to its shale-gas assets through additional deals since then.

Exxon's production has been mostly lower over the past year. A North American shale-drilling boom has contributed to fluctuations in oil and natural-gas prices that have challenged the sector.

In the latest period, the company's refining and marketing business reported operating earnings plunged 81% to $592 million, as weaker margins, primarily in its refining business, decreased profits by $2.4 billion.

Exploration and production operating earnings rose 12% to $6.71 billion. Production increased 1.5% on an oil-equivalent basis.

The company spent $3 billion for stock buybacks during the quarter to reduce the number of shares outstanding.

Write to Tess Stynes at tess.stynes@wsj.com

Corrections & Amplifications Exxon Mobil revenue fell in the third quarter. An earlier version incorrectly said in the second paragraph that revenue rose.

Credit: Tess Stynes

Subject: Petroleum industry; Financial performance; Corporate profits; Natural gas

Location: United States--US

Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140; Name: XTO Energy Inc; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Oct 31, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1447227107

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1447227107?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Refining Hits Big Oil, But Exxon Output Rebounds

Author: Gilbert, Daniel; Scheck, Justin

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 Oct 2013: n/a.

ProQuest document link

Abstract:

Lower refining margins also afflicted Royal Dutch Shell PLC, whose net income plunged 31% from a year ago, and are likely to be a drag on Chevron Corp. when it reports earnings on Friday.

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Exxon Mobil Corp. earned 18% less than a year ago, but the energy behemoth showed signs of ending its yearslong slump in oil and gas production.

The Irving, Texas, conglomerate posted $7.9 billion in profit in the third quarter, down from $9.6 billion a year ago, in large part because of a steep decline in profit from refining oil into gasoline and diesel.

Lower refining margins also afflicted Royal Dutch Shell PLC, whose net income plunged 31% from a year ago, and are likely to be a drag on Chevron Corp. when it reports earnings on Friday. Oil prices more than $100 in the third quarter, increased competition and slack demand from driving and other uses combined to reduce refining profit margins.

But Exxon's energy production appeared to stabilize after sagging in recent years. The company tapped slightly more than four million barrels a day, up 1.5% from a year earlier. Its earnings from selling oil and gas globally increased 12.4% to $6.7 billion, as it produced more high-value oil.

Boosting production is crucial for Exxon, which is also a major chemical maker and refiner. Harvesting oil and gas accounted for 85% of its quarterly profit.

Exxon has been ailing from big bets that haven't yet panned out, including its $25 billion acquisition of XTO Energy Inc. in June 2010. The deal made Exxon America's biggest natural-gas producer just before prices for the fuel plunged.

The company has dialed back drilling for natural gas in the U.S., and its global gas production in the third quarter fell to the lowest level since it bought XTO.

"Arguably, yes, it is a turning point," said Paul Sankey, a Deutsche Bank analyst, noting that the company's cash flows should rise while its spending tapers off. "But it's been a brutal row."

In 4 p.m. trading Thursday, shares of Exxon, which have been roughly flat so far this year, rose 81 cents to $89.62 on the New York Stock Exchange.

The company spent $10.5 billion in the third quarter continuing a massive program geared at boosting its oil and gas production. This was the fourth consecutive quarter that Exxon has spent more than it booked in profit; the company has spent $32.6 billion through the first nine months of the year, up 31% from a year ago, and more than it spent in all of 2010.

Exxon said the expenditures were in line with its budget, and reaffirmed that capital spending is likely to peak this year at around $41 billion.

Shell is spending even more aggressively. The Anglo-Dutch energy titan on Thursday said it expected to shell out $45 billion this year, up from last quarter's forecast of $40 billion and the company's January projection of $33 billion.

Simon Henry, Shell's chief financial officer, said in an interview that capital spending should decrease next year, adding that the investment is necessary to ensure long-term income.

Shell posted profit on a "current cost of supplies" basis--a figure that factors out the impact of inventories, making it equivalent to the net profit reported by U.S. oil companies--of $4.25 billion, down from $6.15 billion a year earlier. The company reported revenue of $116.51 billion, up from $112.12 billion.

The results at Exxon and Shell are the latest example of low refining profit and rising costs eating into the profits of big oil companies. Excluding items, Italian energy giant Eni SpA on Wednesday posted a 29% decline in its quarterly earnings. BP PLC on Tuesday said its quarterly profit fell 34%.

Write to Daniel Gilbert at and Justin Scheck at

Credit: By Daniel Gilbert And Justin Scheck

Subject: Petroleum industry; Financial performance; Corporate profits; Earnings; Capital expenditures; Natural gas; Profit margins

Location: Texas United States--US

People: Gilbert, Daniel Tillerson, Rex W

Company / organization: Name: Chevron Corp; NAICS: 324110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: New York Stock Exchange--NYSE; NAICS: 523210; Name: Deutsche Bank AG; NAICS: 522110, 551111; Name: XTO Energy Inc; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Oct 31, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1447227679

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1447227679?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Chevron Pumps Up Its Spending; Oil Company Outpaces Exxon in Push to Boost Production

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Nov 2013: n/a.

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Chevron Corp. pumps far less oil and gas than industry giant Exxon Mobil Corp., but the company is spending more to find energy and boost production.

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Chevron Corp. pumps far less oil and gas than industry giant Exxon Mobil Corp., but the company is spending more to find energy and boost production.

San Ramon, Calif.-based Chevron reported Friday that its capital and exploration expenses in the third quarter rose more than 25% from a year earlier to $10.6 billion. That is slightly more than it brought in from operations and a notch higher than Exxon spent.

The heavy spending won't taper in the near term. Chevron will spend about 10% more this year than it had originally planned, Patricia Yarrington, the company's chief financial officer, said in conference call.

Chevron's oil-and-gas production rose modestly for the quarter when compared to a year earlier, but profit fell 5.8% to $5 billion on revenue of $58.5 billion. Weighing down earnings was a 45% decline in the profitability of refining crude into gasoline and diesel amid weaker demand for the fuels. A dip in refining profits also took a toll on Exxon and Royal Dutch Shell PLC, which reported earnings earlier in the week.

All three oil giants are spending at historic levels as they invest in massive projects aimed at increasing their production, including plants in Australia that chill natural gas into liquid form for export.

Chevron's spending stands out as particularly aggressive. Its third-quarter costs marked the first time it outspent Exxon since 2009, and only the fifth time in the last decade, according to a review of the companies' financial disclosures.

Exxon, which pumps more oil and gas and has twice as much revenue as Chevron, still spent more through the first nine months of this year--$32.6 billion, compared with Chevron's $28.9 billion.

"We are in a capital-intensive period as we move forward our Australian LNG projects" and in the deep water of the Gulf of Mexico, said Chevron spokesman Kurt Glaubitz.

When it comes to financial firepower, however, the gulf between the two companies isn't as wide as the output and sales figures suggest. Chevron reported cash flow for the third quarter of $10.3 billion, compared with Exxon's $13.6 billion.

Chevron is squeezing more profit from its production than Exxon, as a result of focusing more on oil. Exxon has expanded its holdings in U.S. natural gas at a time of low prices for that fuel.

Write to Daniel Gilbert at

Credit: By Daniel Gilbert

Subject: Petroleum industry; Corporate profits; Profitability; Natural gas

Location: San Ramon California

People: Gilbert, Daniel

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Nov 1, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1447637935

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1447637935?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Faces Fine in Spill

Author: Sider, Alison

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Nov 2013: n/a.

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Federal regulators accused Exxon Mobil Corp. of violating safety regulations on a pipeline that spilled 5,000 barrels of oil into an Arkansas town earlier this year and are proposing a $2.66 million fine.

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Federal regulators accused Exxon Mobil Corp. of violating safety regulations on a pipeline that spilled 5,000 barrels of oil into an Arkansas town earlier this year and are proposing a $2.66 million fine.

Exxon's Pegasus oil pipeline split open in March, releasing heavy Canadian crude into the streets and yards of a residential neighborhood in Mayflower, Ark., northwest of Little Rock. Nearly two dozen homes had to be evacuated.

The pipeline, which runs from southern Illinois to the Texas Gulf Coast, remains out of service.

A report commissioned by Exxon identified the root cause of the failure as hook-shaped cracks along the seams of the pipe, which was manufactured in the 1940s. Those cracks come from an outdated welding process not used since the 1970s, but they can still be found on thousands of miles of pipelines across the U.S.

In a notice released Wednesday, the Pipeline and Hazardous Materials Safety Administration said Exxon should have known the pipe would be susceptible to seam failure because the company detected problems in 1991, 2005 and 2006.

Exxon didn't retest the pipeline often enough and didn't focus on sections that run near homes and drinking-water sources, the agency said, adding that the company didn't act quickly enough on anomalies in the pipe found in 2010.

An Exxon spokesman said it was disappointed with the fine, calling PHMSA's analysis flawed.

"The agency has made some fundamental errors," he said, adding that the company had reassessed the pipeline according to federal standards.

The $2.6 million proposed fine would be among the largest levied by PHMSA, an agency of the federal Department of Transportation. The agency assessed a $3.7 million penalty against Enbridge Inc. following a 20,000 barrel spill in Michigan in 2010. Earlier this year, the agency proposed a $1.7 million penalty against Exxon for its 2011 pipeline break and oil spill in the Yellowstone River.

Write to Alison Sider at alison.sider@wsj.com

Credit: Alison Sider

Subject: Pipelines; Petroleum industry

Location: Arkansas United States--US

Company / organization: Name: Enbridge Inc; NAICS: 486110; Name: Department of Transportation; NAICS: 926120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Nov 6, 2013

Section: US

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1448880478

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1448880478?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

U.S. News: Exxon Faces Fine in Spill

Author: Sider, Alison

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]07 Nov 2013: A.2.

ProQuest document link

Abstract:

Federal regulators accused Exxon Mobil Corp. of violating safety regulations on a pipeline that spilled 5,000 barrels of oil into an Arkansas town earlier this year and are proposing a $2.66 million fine.

Links: 360 Link to Full Text

Full text:  

Federal regulators accused Exxon Mobil Corp. of violating safety regulations on a pipeline that spilled 5,000 barrels of oil into an Arkansas town earlier this year and are proposing a $2.66 million fine.

Exxon's Pegasus oil pipeline split open in March, releasing heavy crude into the streets and yards of a neighborhood in Mayflower, Ark. Nearly two dozen homes had to be evacuated.

The pipeline, which runs from Illinois to the Texas Gulf Coast, remains out of service.

In a notice released Wednesday, the Pipeline and Hazardous Materials Safety Administration said Exxon should have known the pipe would be susceptible to seam failure because the company detected problems in 1991, 2005 and 2006.

Exxon didn't retest the pipeline often enough and didn't focus on sections that run near homes and drinking-water sources, the agency said, adding that the company didn't act quickly enough on anomalies in the pipe found in 2010.

An Exxon spokesman said it was disappointed with the fine, calling PHMSA's analysis flawed.

"The agency has made some fundamental errors," he said, adding that the company had reassessed the pipeline according to federal standards.

Credit: By Alison Sider

Subject: Petroleum industry; Pipelines; Fines & penalties; Oil spills

Location: Arkansas

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 9190: United States; 9110: Company specific; 8510: Petroleum industry; 4310: Regulation

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.2

Publication year: 2013

Publication date: Nov 7, 2013

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1448961018

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1448961018?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited w ithout permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Cnooc Wins Right to Build LNG Export Plant at Canadian Site; Canadian Subsidiary of Chinese-Owned Energy Giant Edges Out Exxon Mobil, Others

Author: Dawson, Chester

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Nov 2013: n/a.

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In addition to Calgary-based Nexen Inc., a wholly owned unit of Cnooc, the project is also backed by two Japanese companies: oil explorer Inpex Corp. and construction engineering firm JGC Corp. It comes as part of a move by Canada to transform its underdeveloped northern Pacific coast into a major hub for LNG by using a glut of natural gas from untapped reserves inland.

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CALGARY--The Canadian subsidiary of Chinese state-owned energy giant Cnooc Ltd. has been awarded exclusive rights to proceed with a proposed terminal to export liquefied natural gas from Canada's Pacific coast, local government and company officials said Tuesday.

Known as Aurora LNG, the project is one of nearly a dozen proposals for plants to export surplus natural gas from British Columbia, none of which have been formally approved yet by their corporate sponsors. In addition to Calgary-based Nexen Inc., a wholly owned unit of Cnooc, the project is also backed by two Japanese companies: oil explorer Inpex Corp. and construction engineering firm JGC Corp.

It comes as part of a move by Canada to transform its underdeveloped northern Pacific coast into a major hub for LNG by using a glut of natural gas from untapped reserves inland. The Canadian government has also been trying to shift gas exports away from the saturated U.S. market and into LNG-hungry Asian markets.

"This sole proponent agreement means that Nexen has exclusive rights to move forward with planning Aurora LNG at Grassy Point," British Columbia Premier Christy Clark said at a news conference.

The Cnooc-led Asian consortium edged out three other possible suitors for the remote, government-owned site in northwestern Canada. That included competing proposals made earlier this year from Exxon Mobil Corp. and Australia's Woodside Petroleum Ltd. and SK E&S Co. Ltd. of South Korea.

A spokesman for Imperial Oil Ltd., a Canadian unit of Exxon Mobil, said that while the company had filed an expression of interest for the site awarded to Aurora LNG, it is "continuing to assess potential sites" in another area further south along the B.C. coast. That area already has been selected for LNG terminal proposals sponsored by rivals such as Chevron Corp. and Royal Dutch Shell PLC.

Grassy Point, whose closest neighbors are the Alaskan border and a remote grizzly bear sanctuary, is attractive because of its proximity to Asia compared with other LNG hubs such as Australia and the Middle East. The undeveloped nub of land is one of three areas along the coast earmarked for possible LNG export terminals with surrounding waters deep enough to berth large ships.

"We intend to do everything we can to responsibly and economically advance the development of a LNG facility and export terminal at Grassy Point," Nexen Chief Executive Kevin Reinhart said at the news conference. "This is just the first step in a long journey," he said, adding that a final decision on whether to build the plant is still pending.

Cnooc owns 60% of Aurora with the two Japanese partners splitting the remaining 40%, he said.

The project made a "nonrefundable deposit" of about $12 million to secure the agreement, B.C.'s Minister of Natural Gas Development Rich Coleman told reporters.

This isn't the first time Grassy Point has been fingered for a multinational LNG export project. In the early 1980s, a now defunct Canadian energy firm and large Japanese trading company chose exactly same spot, but the proposal never got off the ground despite strong backing from the British Columbian government.

Credit: Chester Dawson

Subject: LNG; Natural gas; Petroleum industry; Alliances

Location: Australia British Columbia Canada

Company / organization: Name: Chevron Corp; NAICS: 324110, 211111; Name: Woodside Petroleum Ltd; NAICS: 211111; Name: JGC Corp; NAICS: 211112; Name: Inpex Corp; NAICS: 211111; Name: CNOOC Ltd; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Imperial Oil Ltd; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Nov 12, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 14 50063515

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1450063515?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Cnooc Wins Right to Build LNG Export Plant at Canadian Site; Canadian Subsidiary of Chinese-Owned Energy Giant Edges Out Exxon Mobil, Others

Author: Dawson, Chester

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Nov 2013: n/a.

ProQuest document link

Abstract:

In addition to Calgary-based Nexen Inc., a wholly owned unit of Cnooc, the project is also backed by two Japanese companies: oil explorer Inpex Corp. and construction engineering firm JGC Corp. It comes as part of a move by Canada to transform its underdeveloped northern Pacific coast into a major hub for LNG by using a glut of natural gas from untapped reserves inland.

Links: 360 Link to Full Text

Full text:  

CALGARY--The Canadian subsidiary of Chinese state-owned energy giant Cnooc Ltd. has been awarded exclusive rights to proceed with a proposed terminal to export liquefied natural gas from Canada's Pacific coast, local government and company officials said Tuesday.

Known as Aurora LNG, the project is one of nearly a dozen proposals for plants to export surplus natural gas from British Columbia, none of which have been formally approved yet by their corporate sponsors. In addition to Calgary-based Nexen Inc., a wholly owned unit of Cnooc, the project is also backed by two Japanese companies: oil explorer Inpex Corp. and construction engineering firm JGC Corp.

It comes as part of a move by Canada to transform its underdeveloped northern Pacific coast into a major hub for LNG by using a glut of natural gas from untapped reserves inland. The Canadian government has also been trying to shift gas exports away from the saturated U.S. market and into LNG-hungry Asian markets.

"This sole proponent agreement means that Nexen has exclusive rights to move forward with planning Aurora LNG at Grassy Point," British Columbia Premier Christy Clark said at a news conference.

The Cnooc-led Asian consortium edged out three other possible suitors for the remote, government-owned site in northwestern Canada. That included competing proposals made earlier this year from Exxon Mobil Corp. and Australia's Woodside Petroleum Ltd. and SK E&S Co. Ltd. of South Korea.

A spokesman for Imperial Oil Ltd., a Canadian unit of Exxon Mobil, said that while the company had filed an expression of interest for the site awarded to Aurora LNG, it is "continuing to assess potential sites" in another area further south along the B.C. coast. That area already has been selected for LNG terminal proposals sponsored by rivals such as Chevron Corp. and Royal Dutch Shell PLC.

Grassy Point, whose closest neighbors are the Alaskan border and a remote grizzly bear sanctuary, is attractive because of its proximity to Asia compared with other LNG hubs such as Australia and the Middle East. The undeveloped nub of land is one of three areas along the coast earmarked for possible LNG export terminals with surrounding waters deep enough to berth large ships.

"We intend to do everything we can to responsibly and economically advance the development of a LNG facility and export terminal at Grassy Point," Nexen Chief Executive Kevin Reinhart said at the news conference. "This is just the first step in a long journey," he said, adding that a final decision on whether to build the plant is still pending.

Cnooc owns 60% of Aurora with the two Japanese partners splitting the remaining 40%, he said.

The project made a "nonrefundable deposit" of about $12 million to secure the agreement, B.C.'s Minister of Natural Gas Development Rich Coleman told reporters.

This isn't the first time Grassy Point has been fingered for a multinational LNG export project. In the early 1980s, a now defunct Canadian energy firm and large Japanese trading company chose exactly same spot, but the proposal never got off the ground despite strong backing from the British Columbian government.

Credit: By Chester Dawson

Subject: LNG; Natural gas; Petroleum industry; Alliances

Location: Australia British Columbia Canada

Company / organization: Name: Chevron Corp; NAICS: 324110, 211111; Name: Woodside Petroleum Ltd; NAICS: 211111; Name: JGC Corp; NAICS: 211112; Name: Inpex Corp; NAICS: 211111; Name: CNOOC Ltd; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Imperial Oil Ltd; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Nov 13, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 14 53059024

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1453059024?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Big Investors Lay Out Wagers; Berkshire Moves Into Exxon Mobil; Soros Scoops Up Microsoft

Author: Das, Anupreeta

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Nov 2013: n/a.

ProQuest document link

Abstract:

[...]of note, George Soros's Soros Fund Management LLC said it had taken significant new stakes in Microsoft Corp. and FedEx Corp. Daniel Loeb's Third Point LLC also disclosed in a filing with the Securities and Exchange Commission that it had taken a stake valued at more than $270 million in FedEx.

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Warren Buffett's Berkshire Hathaway Inc. disclosed it had picked up a $3.45 billion stake in Exxon Mobil Corp., a sizable addition to its roughly $107 billion portfolio of stocks.

The disclosure on Thursday was one of many big positions revealed on the quarterly date when investors who manage more than $100 million must disclose their securities holdings. Also of note, George Soros's Soros Fund Management LLC said it had taken significant new stakes in Microsoft Corp. and FedEx Corp.

Daniel Loeb's Third Point LLC also disclosed in a filing with the Securities and Exchange Commission that it had taken a stake valued at more than $270 million in FedEx. Mr. Loeb this week said during a conference that he had invested in FedEx and recently met with the delivery company's chief executive, Fred Smith. Mr. Loeb also cut his stake in Yahoo Inc. Third Point owned 16 million shares of Yahoo at the end of September, down from 62 million three months before. The drop largely reflects Third Point's agreement, announced in July, to sell 40 million shares back to Yahoo, as the firm pared its relationship with the Internet company.

Berkshire's move to buy Exxon Mobil was likely a decision made by Mr. Buffett himself, as the billionaire investor has said he is in charge of investments for Berkshire's multibillion-dollar stockholdings. It is the first large position bought by Berkshire since it took a $10.7 billion stake in International Business Machines Corp. in 2011. Berkshire's two investment managers, Todd Combs and Ted Weschler, buy and sell smaller positions.

Berkshire's 40.1 million-share stake represents less than 1% of Exxon Mobil's 4.4 billion shares outstanding but still makes Berkshire the oil company's sixth-largest shareholder.

Mr. Buffett has had mixed luck with his bets on energy companies. In his 2008 letter to shareholders, he rued Berkshire's large purchase of ConocoPhillips stock when oil and gas prices were near their peak, just before they nose-dived. "Even if prices should rise...the terrible timing of my purchase has cost Berkshire several billion dollars," he wrote. Berkshire owned about $940 million of the company's stock as of Sept. 30, having cut its stake by more than $500 million from the previous quarter.

In 2007, Berkshire bought $2 billion of bonds of Texas electric utility Energy Future Holdings Corp., which he later called a "big mistake." Mr. Buffett said in his 2012 letter that Berkshire wrote down the value of much of that holding as natural-gas prices remained depressed.

Stakes in Coca-Cola Co., American Express Co., IBM and Wells Fargo & Co. form four of Berkshire's largest holdings of U.S. stocks. Stakes in the "Big Four," as Mr. Buffett labels them, were each valued at more than $10 billion as of Sept. 30. These positions, along with Berkshire's holdings in companies such as Procter & Gamble Co. and Deere & Co., didn't change from the previous quarter.

Berkshire cut its stake in U.K. drug maker GlaxoSmithKline PLC to about 350,000 shares. It also cut stakes in Sanofi SA and DirecTV.

Mr. Soros's apparent push into Microsoft comes on the heels of Steve Ballmer announcing in August that he would step down as chief executive within a year. As of Sept. 30, Mr. Soros owned 12.6 million shares of Microsoft.

Overall in the third quarter, the value of Mr. Soros's holdings fell slightly to $9.1 billion from $9.2 billion in the second quarter, according to a filing.

For the quarter, Mr. Soros's stake in nutrition company Herbalife Ltd. stayed flat at 5.04 million shares, though the value of that ownership rose more than 50%. Herbalife has faced criticism from hedge-fund manager Bill Ackman, who had accused it of operating a pyramid scheme. Herbalife denies the allegation.

Mr. Soros's fund, which returned cash to outside investors last year, invests money for Mr. Soros and his family.

Also Thursday, John Paulson, the billionaire investor who has been one of the most bullish investors in gold, made no changes in his exposure to the precious metal in the third quarter, according to a securities filing.

Credit: Anupreeta Das

Subject: Petroleum industry; Acquisitions & mergers; Investment policy

People: Combs, Todd

Company / organization: Name: Microsoft Corp; NAICS: 511210, 334614; Name: Soros Fund Management; NAICS: 523930; Name: ConocoPhillips Co; NAICS: 211111; Name: Third Point LLC; NAICS: 523920; Name: FedEx Corp; NAICS: 484110, 492110, 551114; Name: Yahoo Inc; NAICS: 519130; Name: Wells Fargo & Co; NAICS: 522110, 551111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: American Express Co; NAICS: 522210, 551111; Name: Coca-Cola Co; NAICS: 312111; Name: Energy Future Holdings Corp; NAICS: 221122, 221210; Name: Securities & Exchange Commission; NAICS: 926150; Name: Berkshire Hathaway Inc; NAICS: 442210, 445292, 511110, 511130, 524126, 335210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Nov 14, 2013

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1458383047

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1458383047?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Big Investors Lay Out Wagers; Berkshire Moves Into Exxon Mobil; Soros Scoops Up Microsoft

Author: Das, Anupreeta; Chung, Juliet

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Nov 2013: n/a.

ProQuest document link

Abstract:

[...]of note, George Soros's Soros Fund Management LLC said it had taken significant new stakes in Microsoft Corp. and FedEx Corp. Daniel Loeb's Third Point LLC also disclosed in a filing with the Securities and Exchange Commission that it had taken a stake valued at more than $270 million in FedEx.

Links: 360 Link to Full Text

Full text:  

Warren Buffett's Berkshire Hathaway Inc. disclosed it had picked up a $3.45 billion stake in Exxon Mobil Corp., a sizable addition to its roughly $107 billion portfolio of stocks.

The disclosure on Thursday was one of many big positions revealed on the quarterly date when investors who manage more than $100 million must disclose their securities holdings. Also of note, George Soros's Soros Fund Management LLC said it had taken significant new stakes in Microsoft Corp. and FedEx Corp.

Daniel Loeb's Third Point LLC also disclosed in a filing with the Securities and Exchange Commission that it had taken a stake valued at more than $270 million in FedEx. Mr. Loeb this week said during a conference that he had invested in FedEx and recently met with the delivery company's chief executive, Fred Smith. Mr. Loeb also cut his stake in Yahoo Inc. Third Point owned 16 million shares of Yahoo at the end of September, down from 62 million three months before. The drop largely reflects Third Point's agreement, announced in July, to sell 40 million shares back to Yahoo, as the firm pared its relationship with the Internet company.

Berkshire's move to buy Exxon Mobil was likely a decision made by Mr. Buffett himself, as the billionaire investor has said he is in charge of investments for Berkshire's multibillion-dollar stockholdings. It is the first large position bought by Berkshire since it took a $10.7 billion stake in International Business Machines Corp. in 2011. Berkshire's two investment managers, Todd Combs and Ted Weschler, buy and sell smaller positions.

Berkshire's 40.1 million-share stake represents less than 1% of Exxon Mobil's 4.4 billion shares outstanding but still makes Berkshire the oil company's sixth-largest shareholder.

Mr. Buffett has had mixed luck with his bets on energy companies. In his 2008 letter to shareholders, he rued Berkshire's large purchase of ConocoPhillips stock when oil and gas prices were near their peak, just before they nose-dived. "Even if prices should rise...the terrible timing of my purchase has cost Berkshire several billion dollars," he wrote. Berkshire owned about $940 million of the company's stock as of Sept. 30, having cut its stake by more than $500 million from the previous quarter.

In 2007, Berkshire bought $2 billion of bonds of Texas electric utility Energy Future Holdings Corp., which he later called a "big mistake." Mr. Buffett said in his 2012 letter that Berkshire wrote down the value of much of that holding as natural-gas prices remained depressed.

Stakes in Coca-Cola Co., American Express Co., IBM and Wells Fargo & Co. form four of Berkshire's largest holdings of U.S. stocks. Stakes in the "Big Four," as Mr. Buffett labels them, were each valued at more than $10 billion as of Sept. 30. These positions, along with Berkshire's holdings in companies such as Procter & Gamble Co. and Deere & Co., didn't change from the previous quarter.

Berkshire cut its stake in U.K. drug maker GlaxoSmithKline PLC to about 350,000 shares. It also cut stakes in Sanofi SA and DirecTV.

Mr. Soros's apparent push into Microsoft comes on the heels of Steve Ballmer announcing in August that he would step down as chief executive within a year. As of Sept. 30, Mr. Soros owned 12.6 million shares of Microsoft.

Overall in the third quarter, the value of Mr. Soros's holdings fell slightly to $9.1 billion from $9.2 billion in the second quarter, according to a filing.

For the quarter, Mr. Soros's stake in nutrition company Herbalife Ltd. stayed flat at 5.04 million shares, though the value of that ownership rose more than 50%. Herbalife has faced criticism from hedge-fund manager Bill Ackman, who had accused it of operating a pyramid scheme. Herbalife denies the allegation.

Mr. Soros's fund, which returned cash to outside investors last year, invests money for Mr. Soros and his family.

Also Thursday, John Paulson, the billionaire investor who has been one of the most bullish investors in gold, made no changes in his exposure to the precious metal in the third quarter, according to a securities filing.

Geoffrey Rogow contributed to this article.

Write to Anupreeta Das at

Credit: By Anupreeta Das and Juliet Chung

Subject: Petroleum industry; Acquisitions & mergers; Investment policy

People: Combs, Todd

Company / organization: Name: Microsoft Corp; NAICS: 511210, 334614; Name: Soros Fund Management; NAICS: 523930; Name: ConocoPhillips Co; NAICS: 211111; Name: Third Point LLC; NAICS: 523920; Name: FedEx Corp; NAICS: 484110, 492110, 551114; Name: Yahoo Inc; NAICS: 519130; Name: Wells Fargo & Co; NAICS: 522110, 551111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: American Express Co; NAICS: 522210, 551111; Name: Coca-Cola Co; NAICS: 312111; Name: Energy Future Holdings Corp; NAICS: 221122, 221210; Name: Securities & Exchange Commission; NAICS: 926150; Name: Berkshire Hathaway Inc; NAICS: 442210, 445292, 511110, 511130, 524126, 335210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Nov 15, 2013

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1458387041

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon to Sell Stakes in Iraq Field to PetroChina, Pertamina; West Qurna-1 Project Is Projected to Rival Some of the World's Biggest Sources of Oil

Author: Hassan Hafidh

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Nov 2013: n/a.

ProQuest document link

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The rest of the field is owned by Royal Dutch Shell PLC and Iraq's state-owned South Oil Co. PetroChina's purchase comes as Beijing has become a significant buyer of Iraqi crude, more than doubling its imports from the country since 2009, according to Chinese customs data.

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Exxon Mobil Corp. agreed to sell stakes in its West Qurna-1 oil project in Iraq to PetroChina Co. and PT Pertamina (Persero) of Indonesia.

Exxon said Thursday that PetroChina would take a 25% stake in the project and Pertamina would take a 10% stake. The West Qurna-1 field is located near Basra in southern Iraq. It is one of several big fields that Western oil companies agreed in 2010 to help Iraq develop.

After selling the stakes, Exxon will retain 25% of the field and continue as its operator. The rest of the field is owned by Royal Dutch Shell PLC and Iraq's state-owned South Oil Co.

PetroChina's purchase comes as Beijing has become a significant buyer of Iraqi crude, more than doubling its imports from the country since 2009, according to Chinese customs data.

Simon Powell, head of Asian oil-and-gas research at CLSA Asia-Pacific Markets, said the deal could be valued at as much as $5 billion, based on the field's reserves and a contract of at least 10 years.

The West Qurna-1 field by some estimates has the potential to produce nearly three million barrels of crude a day, rivaling some of the world's largest fields. Exxon and Shell are spearheading the $50 billion project, which currently produces 510,000 barrels a day.

Exxon this year gave Baghdad formal notice that the company wanted to sell less than half its stake in the field to PetroChina. Tension developed between Exxon and Baghdad over the company's 2011 decision to help the semiautonomous region of Kurdistan to explore and develop its oil wealth.

Baghdad has warned Exxon to choose between West Qurna-1 and Kurdistan, though more recently Iraq has ratcheted down such rhetoric.

Chinese oil companies have been on a global shopping spree in recent years to meet the country's energy needs. Domestic oil output has slowed in the past decade as China's fields have matured.

PetroChina has said it aimed for overseas production to account for half its business by 2015. PetroChina and its parent, state-owned China National Petroleum Corp., since 2009 have spent $37 billion buying overseas oil-and-gas assets, according to data provider Dealogic.

China's increased activity in Iraq reflects Beijing's willingness to obtain assets in higher-risk locations. Concerns over Chinese energy companies' ties to the Chinese government have limited their ability to obtain new and unconventional oil-and-gas resources in North America.

Corrections & Amplifications Exxon Mobil agreed to sell 25% of its West Qurna-1 stake to PetroChina and 10% to Pertamina, and will retain a 25% stake. An earlier version of this article incorrectly omitted the Pertamina agreement and said Exxon would retain a 35% stake.

Credit: Hassan Hafidh

Subject: Petroleum industry; Foreign investment

Location: Beijing China Baghdad Iraq Indonesia Kurdistan Iraq

Company / organization: Name: China National Petroleum Corp; NAICS: 211111; Name: PT Pertamina; NAICS: 211111, 213111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: CLSA Asia-Pacific Markets; NAICS: 523120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Nov 28, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y .

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1462218636

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Last updated: 2017-11-20

Database: The Wall Street Journal

Corporate News: Exxon Intends to Sell Stakes in Iraqi Oil Field

Author: Hassan Hafidh

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]29 Nov 2013: B.3.

ProQuest document link

Abstract:

The rest of the field is owned by Royal Dutch Shell PLC and Iraq's state-owned South Oil Co. PetroChina's purchase comes as Beijing has become a significant buyer of Iraqi crude, more than doubling its imports from the country since 2009, according to Chinese customs data.

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Exxon Mobil Corp. agreed to sell stakes in its West Qurna-1 oil project in Iraq to PetroChina Co. and PT Pertamina (Persero) of Indonesia.

Exxon said Thursday that PetroChina would take a 25% stake in the project and Pertamina would take a 10% stake. The West Qurna-1 field is located near Basra in southern Iraq. It is one of several big fields that Western oil companies agreed in 2010 to help Iraq develop.

After selling the stakes, Exxon will retain 25% of the field and continue as its operator. The rest of the field is owned by Royal Dutch Shell PLC and Iraq's state-owned South Oil Co.

PetroChina's purchase comes as Beijing has become a significant buyer of Iraqi crude, more than doubling its imports from the country since 2009, according to Chinese customs data.

Simon Powell, head of Asian oil-and-gas research at CLSA Asia-Pacific Markets, said the deal could be valued at as much as $5 billion, based on the field's reserves and a contract of at least 10 years.

The West Qurna-1 field by some estimates has the potential to produce nearly three million barrels of crude a day, rivaling some of the world's largest fields. Exxon and Shell are spearheading the $50 billion project, which currently produces 510,000 barrels a day.

Credit: By Hassan Hafidh

Subject: Petroleum industry; Foreign investment; Equity stake; Divestiture

Location: Iraq

Company / organization: Name: PT Pertamina; NAICS: 211111, 213111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: PetroChina Co Ltd; NAICS: 424720; Name: South Oil Co; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 8510: Petroleum industry; 2330: Acquisitions & mergers

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2013

Publication date: Nov 29, 2013

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1462355649

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Presses for Exports; U.S.'s Largest Energy Producer Says North America Has Abundant, Long-Lasting Fuel Supplies

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Dec 2013: n/a.

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Exxon Mobil Corp., the nation's largest energy producer, is calling for the U.S. to lift restrictions on exporting domestic oil that date back to the Arab oil embargo of 1973.

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Exxon Mobil Corp., the nation's largest energy producer, is calling for the U.S. to lift restrictions on exporting domestic oil that date back to the Arab oil embargo of 1973.

The Irving, Texas, company's public support for crude exports comes as it forecasts decades of abundant supplies of petroleum in the U.S. and elsewhere as well as increasing global demand for oil, according to its annual energy outlook set to be released on Thursday.

"We are not dealing with an era of scarcity, we are dealing with a situation of abundance," Ken Cohen, Exxon's vice president of public and government affairs, said in an interview. "We need to rethink the regulatory scheme and the statutory scheme on the books."

By 2015, energy companies will tap more oil in North America from dense layers of rock alone than the current output of members of the Organization of the Petroleum Exporting Countries except Saudi Arabia, Exxon projects.

World-wide, companies will pump greater amounts of oil through 2040 and still leave nearly two-thirds of the earth's crude deposits untouched, Exxon says.

Oil and gas are becoming more abundant, Exxon contends, as new technologies make it possible to draw the fuels from deep under the world's oceans, oil sands deposits and tight rock formations like shale. The sheer abundance of oil and gas in the U.S. poses challenges for Exxon. Booming production has overwhelmed U.S. demand, pushing domestic prices lower and eroding profit margins for energy producers.

Exxon has long held that the same trade rules should apply to oil and gas as other products made in the U.S., and has said that North America was pumping enough oil and gas to become an exporter. But now the world's largest investor-owned energy company is explicitly calling for an end to America's effective ban on most crude exports.

In the past year, Royal Dutch Shell PLC and ConocoPhillips also have called for the U.S. to permit crude exports.

Such a push is likely to meet stiff resistance from energy consumers worried that exporting crude could lead to higher U.S. fuel prices, as well as those concerned about the environmental effects of increased production. It could also stir opposition from companies that refine oil into gasoline and diesel, and benefit from less expensive crude.

The U.S. allows some oil to be shipped to Canada, but bans most other exports of crude. Some companies, including Exxon, are already seeking to export natural gas to countries willing to pay a premium for it. The U.S. government has approved licenses for several terminals to export natural gas, chilled into liquid form, to countries with which it doesn't have a free-trade agreement.

Exxon estimates that the world will consume 35% more energy in 2040 than in 2010, led by population growth and rising incomes in India, China and other developing countries. Oil and gas will provide about 60% of the energy needed in 2040, compared with 7% from hydropower and other renewables, it projects.

The company increasingly is optimistic about how much oil can be recovered with today's technology, predicting 65% of the world's crude will be untapped by 2040. A year ago, the company estimated the world would have used "less than half" of its oil resources. The numbers don't reflect whether the oil can be produced profitably.

BP PLC, which annually publishes its own energy outlook, says no one "can know how much oil exists under the earth's surface or how much it will be possible to produce."

Despite North America's surging oil output, Exxon projects that the biggest increase will come from the Middle East. By 2040, 45% of the world's supplies of oil and related liquid fuels will come from OPEC, up from 40% in 2010, it estimates.

Much the world's remaining oil won't be easy or cheap to produce. In its outlook, Exxon highlights innovations such as Arctic oil platforms that can withstand icebergs, and wells that extend seven miles to reach underwater crude deposits. In addition, the energy company projects that carbon emissions will cost $80 a ton by 2040 as governments move to curb greenhouse gases, adding to its costs.

The oil giant's outlook marks a continuing divide with environmentalists and some governments that advocate limiting fossil-fuel use to curb carbon emissions, warning that they trap heat in the atmosphere and warm the planet. The International Energy Agency has called for a 50% reduction in oil consumption by 2050, a view Exxon executives dismiss as unrealistic.

Instead, Exxon envisions global emissions peaking in 2030, as coal increasingly is displaced by natural gas, which emits roughly half as much carbon when burned to generate electricity. Unconventional sources of gas, such as shale, will make up a third of the world's gas supplies by 2040, the company predicts.

Credit: Daniel Gilbert

Subject: Exports; Petroleum industry; International trade; Natural gas

Location: United States--US Texas North America

Company / organization: Name: ConocoPhillips Co; NAICS: 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Dec 11, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1466856233

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1466856233?accountid=7117

Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Presses for Exports

Author: Gilbert, Daniel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]12 Dec 2013: B.1.

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Abstract:

Exxon Mobil Corp., the nation's largest energy producer, is calling for the U.S. to lift restrictions on exporting domestic oil that date back to the Arab oil embargo of 1973.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp., the nation's largest energy producer, is calling for the U.S. to lift restrictions on exporting domestic oil that date back to the Arab oil embargo of 1973.

The Irving, Texas, company's public support for crude exports comes as it forecasts decades of abundant supplies of petroleum in the U.S. and elsewhere as well as increasing global demand for oil, according to its annual energy outlook set to be released on Thursday.

"We are not dealing with an era of scarcity, we are dealing with a situation of abundance," Ken Cohen, Exxon's vice president of public and government affairs, said in an interview. "We need to rethink the regulatory scheme and the statutory scheme on the books."

By 2015, energy companies will tap more oil in North America from dense layers of rock alone than the current output of members of the Organization of the Petroleum Exporting Countries except Saudi Arabia, Exxon projects.

World-wide, companies will pump greater amounts of oil through 2040 and still leave nearly two-thirds of the earth's crude deposits untouched, Exxon says.

Oil and gas are becoming more abundant, Exxon contends, as new technologies make it possible to draw the fuels from deep under the world's oceans, oil sands deposits and tight rock formations like shale. The sheer abundance of oil and gas in the U.S. poses challenges for Exxon. Booming production has overwhelmed U.S. demand, pushing domestic prices lower and eroding profit margins for energy producers.

Exxon has long held that the same trade rules should apply to oil and gas as other products made in the U.S., and has said that North America was pumping enough oil and gas to become an exporter. But now the world's largest investor-owned energy company is explicitly calling for an end to America's effective ban on most crude exports.

In the past year, Royal Dutch Shell PLC and ConocoPhillips also have called for the U.S. to permit crude exports.

Such a push is likely to meet stiff resistance from energy consumers worried that exporting crude could lead to higher U.S. fuel prices, as well as those concerned about the environmental effects of increased production. It could also stir opposition from companies that refine oil into gasoline and diesel, and benefit from less expensive crude.

The U.S. allows some oil to be shipped to Canada, but bans most other exports of crude. Some companies, including Exxon, are already seeking to export natural gas to countries willing to pay a premium for it. The U.S. government has approved licenses for several terminals to export natural gas, chilled into liquid form, to countries with which it doesn't have a free-trade agreement.

Exxon estimates that the world will consume 35% more energy in 2040 than in 2010, led by population growth and rising incomes in India, China and other developing countries. Oil and gas will provide about 60% of the energy needed in 2040, compared with 7% from hydropower and other renewables, it projects.

The company increasingly is optimistic about how much oil can be recovered with today's technology, predicting 65% of the world's crude will be untapped by 2040. A year ago, the company estimated the world would have used "less than half" of its oil resources. The numbers don't reflect whether the oil can be produced profitably.

BP PLC, which annually publishes its own energy outlook, says no one "can know how much oil exists under the earth's surface or how much it will be possible to produce."

Despite North America's surging oil output, Exxon projects that the biggest increase will come from the Middle East. By 2040, 45% of the world's supplies of oil and related liquid fuels will come from OPEC, up from 40% in 2010, it estimates.

Much the world's remaining oil won't be easy or cheap to produce. In its outlook, Exxon highlights innovations such as Arctic oil platforms that can withstand icebergs, and wells that extend seven miles to reach underwater crude deposits. In addition, the energy company projects that carbon emissions will cost $80 a ton by 2040 as governments move to curb greenhouse gases, adding to its costs.

The oil giant's outlook marks a continuing divide with environmentalists and some governments that advocate limiting fossil-fuel use to curb carbon emissions, warning that they trap heat in the atmosphere and warm the planet. The International Energy Agency has called for a 50% reduction in oil consumption by 2050, a view Exxon executives dismiss as unrealistic.

Instead, Exxon envisions global emissions peaking in 2030, as coal increasingly is displaced by natural gas, which emits roughly half as much carbon when burned to generate electricity. Unconventional sources of gas, such as shale, will make up a third of the world's gas supplies by 2040, the company predicts.

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Credit: By Daniel Gilbert

Subject: Petroleum industry; International trade; Natural gas; US exports; Crude oil

Location: United States--US Texas North America

People: Cohen, Kenneth

Company / organization: Name: ConocoPhillips Co; NAICS: 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 1300: International trade & foreign investment; 8510: Petroleum industry; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2013

Publication date: Dec 12, 2013

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1467035317

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon Needs a Land of the Free; Opening Up the Trade in U.S. Crude Oil Makes Sense, Especially for the Country's Biggest of Big Oil Companies

Author: Denning, Liam

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Dec 2013: n/a.

ProQuest document link

Abstract:

In part, that reflects the billions of dollars plowed into the ill-timed acquisition of shale-gas producer XTO Energy in 2010 (one reason Exxon is also seeking to export liquefied natural gas from the U.S.).

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Global oil majors, with most of the world's choicest reserves closed off to them, have more reason than many to promote free trade. And Exxon Mobil, which called this week for the U.S. to lift restrictions on crude-oil exports, is an evangelist with especially good reason.

Surging U.S. oil production, combined with export restrictions, hold down domestic oil prices relative to global ones. That enables many U.S. refiners to capture big profits as they are allowed to export refined products like gasoline. They have no interest in seeing the export ban lifted.

Exxon is a big U.S. refiner. But it is also one of the few global integrated oil-and-gas majors. So while U.S. crude-oil exports would curb an advantage for its refining operations there, they represented a mere 2.6% of its capital employed in 2012.

Exxon must weigh that against its upstream oil-and-gas fields, where lifting restrictions would help relieve the glut and raise prices for domestic oil. U.S. fields represented almost a third of capital employed last year. And that doesn't include its large Canadian operation where, due to logistical connections, lifting U.S. restrictions would also help raise prices.

Return on capital employed, or ROCE, is a key metric for Exxon, not least because it spent years promoting it on Wall Street. And as Doug Terreson of ISI Group points out, Exxon's ROCE will be an estimated 18% this year, down from 34% in 2008.

In part, that reflects the billions of dollars plowed into the ill-timed acquisition of shale-gas producer XTO Energy in 2010 (one reason Exxon is also seeking to export liquefied natural gas from the U.S.). Exxon's U.S. upstream capital employed rose almost fourfold between 2008 and 2012.

Looking ahead, projects in North America account for 32% of Exxon's new production out to 2017, according to Mr. Terreson. Earning as much as possible on every one of those extra barrels will be critical to helping Exxon raise its returns.

Corrections & Amplifications Exxon's return on capital employed, or ROCE, will be an estimated 18% this year, Doug Terreson of ISI Group notes. In an earlier version of this article, the estimated ROCE was incorrectly said to be 13%.

Credit: Liam Denning

Subject: Petroleum industry; Oil reserves; Natural gas; Petroleum production

Location: United States--US

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Dec 12, 2013

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1467490126

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Unit Seeks Canada Approval for Oil-Sands Project; Imperial Oil Plans New Oil-Sands Project in Northern Alberta

Author: Dawson, Chester

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Dec 2013: n/a.

ProQuest document link

Abstract:

CALGARY--Exxon Mobil Corp.'s Canadian subsidiary said Tuesday it has applied to local regulators for approval to develop a new 135,000 barrel per day oil-sands project in northern Alberta, the latest in a series of planned heavy crude production capacity expansions in the landlocked province.

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CALGARY--Exxon Mobil Corp.'s Canadian subsidiary said Tuesday it has applied to local regulators for approval to develop a new 135,000 barrel per day oil-sands project in northern Alberta, the latest in a series of planned heavy crude production capacity expansions in the landlocked province.

Imperial Oil Ltd., which is majority owned by Exxon, said a preliminary estimate puts the cost of the project at about 7 billion Canadian dollars ($6.6 billion). Pending regulatory approval, it plans to make a final decision on whether to move ahead as soon as 2017 and begin production as early as 2020.

That follows recent decisions by two other large producers, Royal Dutch Shell PLC and Suncor Energy Inc., to green light major expansions of rival oil sands projects despite concerns about environmental degradation in Alberta's boreal forests and constraints on pipelines connecting to key markets such as Asia and the U.S.

Canada's output of heavy oil is expected to more than double by 2030 to over five-million barrels a day, according to the Canadian Association of Petroleum Producers.

The Exxon Mobil subsidiary said its proposal, known as Aspen, would be the company's first to use steam-assisted gravity drainage, or SAGD, to access up to 1.1 billion barrels of oil embedded in sand underground.

SAGD and other so-called in situ extraction processes account for over half of current oil sands production with the remainder coming from open pit surface mines. But the technology is needed to access 80% of the country's overall deposits, which are located far below the surface, according to CAPP.

Imperial uses another form of thermal extraction at its Cold Lake operation, which it says is the largest in situ heavy oil production site in the world. Both Aspen and Cold Lake are being considered for commercial production using chemical solvents to lower costs by reducing the need for generating steam.

The Calgary-based company spent nearly C$13 billion developing its Kearl oil sands surface mine, which began operations earlier this year and is expected to produce up to 345,000 barrels a day at full capacity by 2020.

In October, Suncor, Canada's biggest energy company, said it would spend C$13.5 billion to develop its 180,000 barrel a day Fort Hills mine and Shell announced plans to move forward with its 80,000 barrel a day Carmon Creek project for an undisclosed amount.

Earlier this month, the Canadian government approved a separate Shell application for expanding production by 100,000 barrels per day at another mine called Jackpine.

Credit: Chester Dawson

Subject: Oil sands; Petroleum industry; Petroleum production; Regulatory approval

Location: Calgary Alberta Canada

Company / organization: Name: Imperial Oil Ltd; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Dec 17, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1468722382

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Executives Boost Share Sales in December; December Sales Almost Equal Those From All of 2012

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Dec 2013: n/a.

ProQuest document link

Abstract:

The biggest individual sale, disclosed Tuesday, was by Mark Albers, a senior vice president and a leading candidate to be Exxon's next chief executive, analysts say.

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Exxon Mobil Corp. shares hit an all-time high this week--and some of its executives are cashing in.

In December alone, executives at the oil giant have sold almost as many shares as in all of 2012, reaping $8.3 million, according to a Wall Street Journal review of regulatory filings.

The biggest individual sale, disclosed Tuesday, was by Mark Albers, a senior vice president and a leading candidate to be Exxon's next chief executive, analysts say. Mr. Albers sold about 8% of his shares for roughly $5 million.

The sudden uptick in selling comes after Warren Buffett's Berkshire Hathaway disclosed a $3.45 billion stake in Exxon on Nov. 14. Since then, the company's shares have risen nearly 4%, and are up nearly 12% so far this year, after languishing for much of 2013.

An Exxon spokesman declined to comment; Mr. Albers didn't immediately respond to a request for comment.

Exxon, the world's largest shareholder-owned energy producer, has been spending mightily to boost oil and gas output, which has fallen in recent years. It reported progress in late October, saying production increased 1.5% from a year earlier, while profits from selling the oil and gas rose 12.4%.

The company's stock performance now equals that of U.S. rival Chevron Corp. after lagging for much of 2013.

Analysts following the company said they weren't surprised to see some Exxon executives sell shares with the stock hitting new heights, and don't give such sales much weight.

Mr. Albers' sale, though, raised a few eyebrows. "I'm kind of surprised," said Fadel Gheit, a senior analyst at Oppenheimer & Co. For executives in the running for the top job, he said, the conventional wisdom is "you don't want to sell shares."

The company's executives and board members owned about 0.2% of its shares as of February 2013, according to a filing with the Securities and Exchange Commission.

Credit: Daniel Gilbert

Subject: Petroleum industry; Executives; Financial performance

People: Gilbert, Daniel Buffett, Warren

Company / organization: Name: Chevron Corp; NAICS: 324110, 211111; Name: Berkshire Hathaway Inc; NAICS: 442210, 445292, 511110, 511130, 524126, 335210; Name: Securities & Exchange Commission; NAICS: 926150

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2013

Publication date: Dec 18, 2013

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1468960475

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Copyright: (c) 2013 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Big Oil Companies Struggle to Justify Soaring Project Costs; Chevron, Exxon and Shell Spent More Than $120 Billion in 2013 to Boost Oil and Gas Output, but Production Is Down

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Jan 2014: n/a.

ProQuest document link

Abstract:

Chevron Corp., Exxon Mobil Corp. and Royal Dutch Shell PLC spent more than $120 billion in 2013 to boost their oil and gas output--about the same cost in today's dollars as putting a man on the moon. [...]Chevron, Exxon and Shell are digging even deeper into their pockets, putting their usually reliable profit margins in jeopardy.

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Chevron Corp., Exxon Mobil Corp. and Royal Dutch Shell PLC spent more than $120 billion in 2013 to boost their oil and gas output--about the same cost in today's dollars as putting a man on the moon.

But the three oil giants have little to show for all their big spending. Oil and gas production are down despite combined capital expenses of a half-trillion dollars in the past five years. Each company is expected to report later this week a profit decline for 2013 compared with 2012, even though oil prices are high.

One of the biggest problems: Costs are soaring for many of the new "megaprojects" to tap petroleum deposits needed to replenish depleting fields.

Plans under way to pump oil using man-made islands in the Caspian Sea could cost a consortium that includes Exxon and Shell $40 billion, up from the original budget of $10 billion. The price tag for a natural-gas project in Australia, called Gorgon and jointly owned by the three companies, has ballooned 45% to $54 billion. Shell is spending at least $10 billion on untested technology to build a natural-gas plant on a large boat so the company can tap a remote field, according to people who have worked on the project.

Finding the next gusher has always been a risky business, sending oil companies beneath the ocean floor and into unstable parts of Africa, Asia and the Middle East. Now the pursuit is trickier and more expensive than ever. The easiest-to-reach oil ran dry long ago, and the most prolific fields often are controlled by state-owned companies in places like Saudi Arabia and Venezuela.

As a result, Chevron, Exxon and Shell are digging even deeper into their pockets, putting their usually reliable profit margins in jeopardy. Exxon is borrowing more, dipping into its cash pile and buying back fewer shares to help the Irving, Texas, company cover capital costs.

Exxon has said such costs would hit about $41 billion last year, up 51% from $27.1 billion in 2009.

As they pursued the big-bet strategy, the three oil giants arrived late to the shale boom in North America, where they missed out on profits raked in by smaller, nimbler companies that pioneered how to extract oil and gas from the dense rock.

The news isn't all bad. Combined profits at Chevron, Exxon and Shell totaled about $70 billion in 2013, according to analysts' estimates. Exxon and Shell report fourth-quarter and full-year results Thursday, while Chevron announces its results Friday. In 2012, the three companies earned nearly $100 billion.

Exxon and Chevron are pressing ahead with their megaprojects, confident they will boost production within three years. "Before we make the first cut with a saw, we re-measure five times instead of one," says Ken Cohen, Exxon's vice president of public and government affairs.

By 2017, Exxon will pump a million new barrels of oil per day and the equivalent in natural gas, showing the company's ability to deliver big projects on time, executives say. Exxon's output started to rebound in late 2013 after a two-year decline, helped by new crude from a $13 billion oil-sands project in Canada. The project's cost rose $2 billion since 2011 because of regulatory hurdles and permit delays.

In a sign of the growing pressure, Shell is reconsidering some investments in "elephant projects" that cost billions of dollars and were a key part of the company's growth strategy. Earlier this month, Shell announced its first profit warning in 10 years and has vowed to focus more on profitability than increasing its oil and gas output.

Full-year earnings at Shell are expected to total about $16.8 billion, down from $27.2 billion in 2012. Net capital spending hit $44.3 billion in 2013, up nearly 50% from 2012.

Oil-industry experts say it will be difficult for the oil giants to spend less because they need to replenish the oil and gas they are pumping--and must keep up with rivals in the world-wide exploration race.

"If you don't spend, you're going to shrink," says Dan Pickering, co-president of Tudor, Pickering Holt & Co., an investment bank in Houston that specializes in the energy industry. Unfortunately for the oil giants, though, "I don't think there's any way these projects are more profitable than their legacy production," he adds.

Chevron has been especially aggressive, promising a 25% increase in oil and gas output by 2017. Last year, the San Ramon, Calif., company poured $42 billion into oil and gas projects, more than double its 2010 total, even though Chevron is half as big as Exxon or Shell by annual revenue. Chevron plans to spend an additional $40 billion in 2014.

The spending surge has drawn attention from U.S. securities regulators, who have demanded more disclosure from Chevron about whether the jump will get even bigger and affect the company's liquidity. Chevron told regulators it will provide more details.

Chevron's most gargantuan projects, from Australia to the Gulf of Mexico, haven't generated any cash flow yet--and might not until next year. The lag between the upfront investment in the projects and their output is pressuring Chevron's bottom line. Analysts expect the company to report that profits fell about 20% to $21 billion in 2013 from $26.2 billion in 2012.

The Gorgon natural-gas project is one of the most extreme examples of the runaway costs that haunt Chevron, Exxon and Shell. The three companies teamed up in 2009 to build the plant on an island reserve 40 miles off Australia's coast, aiming to tap a natural-gas trove estimated at 40 trillion cubic feet. Gorgon could be productive for decades and feed energy-hungry Japan, South Korea and China.

Chevron staked more than $18 billion of its own money on Gorgon, one of the company's biggest projects ever, owns nearly half of the project and runs it. Exxon and Shell own a 25% stake each.

Gorgon, also the name of sisters in Greek mythology who had snakes in their hair and could turn beholders to stone, presents unusually tough challenges. The gas produced there must be piped 80 miles across a mountainous sea floor to Barrow Island, home to so many unusual species of plants and animals that locals call it "Australia's Ark."

Then the natural gas has to be purified and run through giant chillers that condense it into liquid form so it can be shipped on tankers.

Barrow Island's sensitive ecology meant that much of Gorgon's construction had to be done elsewhere, with hundreds of thousands of tons of buildings and equipment disinfected and shrink-wrapped to keep out invasive species.

Chevron executives brushed aside analysts' worries about the project's cost. "We see a window of opportunity to move forward with Gorgon, timing it to capture growing market demand while benefiting from a lowering cost environment," George Kirkland, now Chevron's vice chairman, said in March 2009.

Costs soon spiked higher. Labor costs rose because of fierce competition for skilled workers as other companies committed to spending more than $100 billion in similar gas projects across Australia. The strong Australian dollar inflated the cost of materials. Cyclones slowed work on Gorgon and forced Chevron, Exxon and Shell to build stormproof camps for workers.

Gorgon was about half-finished in December 2012 when Chevron estimated the project would cost a total of $52 billion--or 40% over budget. Last month, Chevron tacked an additional $2 billion to the price tag. The project now is 75% complete, according to the company.

"The economics of the Gorgon project are strong," says Kurt Glaubitz, a Chevron spokesman. The company has struck deals to sell most of Gorgon's output under contracts tied to oil prices that are up about 60% since Chevron committed itself to the project, he adds.

Chevron says it is working hard to keep costs in line. A civil-engineering unit dedicated to managing expenses and overseeing contractors has tripled to 120 employees since 2008. The company has about 62,000 employees.

Gary Fischer, who leads the unit and started at Chevron as an intern in 1979, said at an industry conference in November that the company has intensified its focus on completing megaprojects on time and on budget. Those projects "are very fragile," he said, "and they're totally unforgiving."

Credit: Daniel Gilbert

Subject: Profitability; Petroleum industry; Corporate profits; Capital expenditures; Capital costs; Natural gas; Profit margins; Financial performance

Location: Australia

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Jan 28, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1492160119

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1492160119?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduc ed with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Mobil Profit Falls on Lower Production; Company's Refining and Marketing Business Also Drops on Weaker Margins

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Jan 2014: n/a.

ProQuest document link

Abstract:

"Over the next two years, Exxon Mobil will start up numerous major projects delivering profitable new supplies of oil and natural gas," Mr. Tillerson said Thursday, adding that the company will also seek to improve returns from its refining and chemicals businesses.

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Exxon Mobil Corp. spent more money but pumped less oil and natural gas last year, leading to a 27% drop in profit for America's biggest energy producer.

The company posted a profit of $8.35 billion in the last three months of 2013, ending the year with a haul of $32.6 billion, its lowest yearly profit since 2010.

Exxon's oil and gas output in the fourth quarter was down 1.8% from a year ago and fell for the year, as it has every year since the 2010 acquisition of natural-gas producer XTO Energy Inc. Revenue dropped 3.3% to $110.86 billion in the quarter versus the same stretch of 2012.

The company also raised less money by selling assets in 2013 than in the previous year, which lowered its profit relative to 2012.

The company's shares were down 1% at $94.12 in Thursday afternoon trading on the New York Stock Exchange.

Exxon's results, which were slightly below analysts' expectations, are the latest sign of the challenges facing Chief Executive Rex Tillerson as he attempts to boost the company's sagging profit and output of oil and gas. To revive them, Mr. Tillerson is betting on striking petroleum deposits from Canada's oil sands to Russia's ice-choked seas.

"Over the next two years, Exxon Mobil will start up numerous major projects delivering profitable new supplies of oil and natural gas," Mr. Tillerson said Thursday, adding that the company will also seek to improve returns from its refining and chemicals businesses.

Exxon, which is based in Irving, Texas, hasn't managed to increase its petroleum production by drilling for several years. The last year its output rose was 2010, when it bought XTO for $25 billion. The deal made Exxon the largest natural-gas producer in the U.S. just as prices for the fuel sank amid a glut, which has diluted the company's returns.

In response, Exxon has shifted its focus away from natural gas in the U.S. and is now tapping less than it has since completing the XTO deal.

It has also ramped up capital spending, which has jumped more than 50% in the past five years. Exxon shelled out $42.5 billion in 2013, the highest level in more than a decade. This increase reflects a stepped-up push to find new deposits of oil and gas, which cost $2.4 billion in 2013.

The higher exploration expenses were driven in part by Exxon's search for oil across Russia, from the Kara Sea and Black Sea to shale in western Siberia, in a partnership with Rosneft, which is largely owned by the government.

"We have had a lot of exploration activity in support of what is going to be a very robust drilling program this year and next year," David Rosenthal, Exxon's vice president of investor relations, said of its Russia operations in a conference call on Thursday.

The heavy investment is taking a toll on Exxon's balance sheet: It is carrying $22.7 billion in debt, nearly twice as much as the beginning of 2013. The company continued to draw down its cash balance in the fourth quarter, to $4.9 billion at the end of 2013 from $5.7 billion at the beginning of the last quarter.

Meanwhile, Exxon's profit from pumping oil and gas fell 13%, to $6.79 billion, in the last quarter of 2013, weighed down by higher costs. The company's business of refining oil into gasoline and diesel fell 48% to $916 million. Refining results in 2012 were boosted by asset sales.

Still, Exxon said it would continue buying back its shares at the rate of $3 billion a quarter.

Credit: Daniel Gilbert

Subject: Natural gas; Petroleum industry; Exploration & development expenses; Financial performance; Corporate profits

Location: Russia United States--US

Company / organization: Name: OAO Rosneft; NAICS: 324110; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: New York Stock Exchange--NYSE; NAICS: 523210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Jan 30, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1492530079

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1492530079?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Corporate News: Exxon's Profit Falls as It Spends More, Pumps Less

Author: Gilbert, Daniel; Stynes, Tess

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]31 Jan 2014: B.3.

ProQuest document link

Abstract:

"Over the next two years, Exxon Mobil will start up numerous major projects delivering profitable new supplies of oil and natural gas," Mr. Tillerson said Thursday, adding that the company will also seek to improve returns from its refining and chemicals businesses.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. spent more money but pumped less oil and natural gas last year, leading to a 27% drop in profit for America's biggest energy producer.

The company posted a profit of $8.35 billion for the last three months of 2013, ending the year with a haul of $32.6 billion, its lowest yearly profit since 2010.

Exxon's oil and gas output in the fourth quarter was down 1.8% from a year ago and fell for the year, as it has every year since the 2010 acquisition of natural-gas producer XTO Energy Inc.

Revenue dropped 3.3% to $110.86 billion in the quarter versus the same stretch of 2012.

The company also raised less money by selling assets in 2013 than in the previous year, which lowered its profit relative to 2012.

The company's shares were down 1% to $94.12 in afternoon trading on Thursday.

Exxon's results, which were slightly below analysts' expectations, are the latest sign of the challenges facing Chief Executive Rex Tillerson as he attempts to boost the company's sagging profit and output of oil and gas.

To revive them, Mr. Tillerson is betting on striking petroleum deposits from Canada's oil sands to Russia's ice-choked seas.

"Over the next two years, Exxon Mobil will start up numerous major projects delivering profitable new supplies of oil and natural gas," Mr. Tillerson said Thursday, adding that the company will also seek to improve returns from its refining and chemicals businesses.

Exxon, which is based in Irving, Texas, hasn't managed to increase its petroleum production by drilling for several years.

The last year its output rose was 2010, when it bought XTO for $25 billion. The deal made Exxon the largest natural-gas producer in the U.S. just as prices for the fuel sank amid a glut, which has diluted the company's returns.

In response, Exxon has shifted its focus away from natural gas in the U.S. and is now tapping less than it has since completing the XTO deal.

It has also ramped up capital spending, which has jumped more than 50% in the past five years. Exxon shelled out $42.5 billion in 2013, the highest level in more than a decade. This increase reflects a stepped-up push to find new deposits of oil and gas, which cost $2.4 billion in 2013.

The higher exploration expenses were driven in part by Exxon's search for oil across Russia, from the Kara Sea and Black Sea to shale in western Siberia, in a partnership with Rosneft, which is largely owned by the government.

"We have had a lot of exploration activity in support of what is going to be a very robust drilling program this year and next year," David Rosenthal, Exxon's vice president of investor relations, said of its Russia operations in a conference call on Thursday.

The heavy investment is taking a toll on Exxon's balance sheet: It is carrying $22.7 billion in debt, nearly twice as much as the beginning of 2013. The company continued to draw down its cash balance in the fourth quarter, to $4.9 billion at the end of 2013 from $5.7 billion at the beginning of the last quarter.

Meanwhile, Exxon's profit from pumping oil and gas fell 13%, to $6.79 billion, in the last quarter of 2013, weighed down by higher costs. The company's business of refining oil into gasoline and diesel fell 48% to $916 million. Refining results in 2012 were boosted by asset sales.

Still, Exxon said it would continue buying back its shares at the rate of $3 billion a quarter.

Credit: By Daniel Gilbert and Tess Stynes

Subject: Exploration & development expenses; Financial performance; Corporate profits; Petroleum industry

Location: United States--US

Company / organization: Name: OAO Rosneft; NAICS: 324110

Classification: 3100: Capital & debt management; 8510: Petroleum industry; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2014

Publication date: Jan 31, 2014

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1492863737

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1492863737?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited with out permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Moving the Market -- MoneyBeat: Google Eclipses Exxon

Author: Russolillo, Steven

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]10 Feb 2014: C.2.

ProQuest document link

Abstract:

Google Inc. exceeded Exxon Mobil Corp. by market capitalization last week, making the Internet juggernaut the second-most valuable company in the U.S., according to FactSet data.

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Full text:  

The two most valuable U.S. companies now hail from the technology sector for the first time since the height of the Internet bubble.

Google Inc. exceeded Exxon Mobil Corp. by market capitalization last week, making the Internet juggernaut the second-most valuable company in the U.S., according to FactSet data. Google has a market cap of $396.43 billion, while Exxon has a stock-market value of about $392.67 billion. Both trail Apple Inc.'s $463.55 billion market cap.

The last time the two most valuable U.S. companies were tech firms was March 2000, said Kevin Pleines, a research analyst at Birinyi Associates. That was when the tech-heavy Nasdaq composite peaked above 5000 before a tumble.

Google's recent climb through the market-cap ranks comes as the company's stock price has surged 66% since the beginning of last year. At $1,177.44, Google has the second-highest stock price in the S&P 500.

Credit: By Steven Russolillo

Subject: Investment policy; Business valuation; Stock prices

Location: United States--US

Company / organization: Name: Apple Inc; NAICS: 511210, 334111, 334220; Name: Google Inc; NAICS: 519130; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 3100: Capital & debt management; 3400: Investment analysis & personal finance; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: C.2

Publication year: 2014

Publication date: Feb 10, 2014

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1496636840

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1496636840?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon CEO Joins Suit Citing Fracking Concerns; Residents of Dallas Suburb Fight Construction of Tower That Would Provide Water for Drilling

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Feb 2014: n/a.

ProQuest document link

Abstract:

The man was Rex Tillerson, chairman and chief executive of Exxon Mobil Corp. He and his neighbors had filed suit to block the tower, saying it is illegal and would create "a noise nuisance and traffic hazards," in part because it would provide water for use in hydraulic fracturing. Mr. Tillerson, 61 years old, moved to Bartonville in 2001 and became CEO in 2006. Since 2007, companies have fracked at least nine shale wells within a mile of the Tillerson home, according to Texas regulatory and real-estate records.

Links: 360 Link to Full Text

Full text:  

BARTONVILLE, Texas--One evening last November, a tall, white-haired man turned up at a Town Council meeting to protest construction of a water tower near his home in this wealthy community outside Dallas.

The man was Rex Tillerson, chairman and chief executive of Exxon Mobil Corp.

He and his neighbors had filed suit to block the tower, saying it is illegal and would create "a noise nuisance and traffic hazards," in part because it would provide water for use in hydraulic fracturing. Fracking, which requires heavy trucks to haul and pump massive amounts of water, unlocks oil and gas from dense rock and has helped touch off a surge in U.S. energy output.

It also is a core part of Exxon's business.

While the lawsuit Mr. Tillerson joined cites the side effects of fracking, a lawyer representing the Exxon CEO said he hadn't complained about such disturbances. "I have other clients who were concerned about the potential for noise and traffic problems, but he's never expressed that to me or anyone else," said Michael Whitten, who runs a small law practice in Denton, Texas. Mr. Whitten said Mr. Tillerson's primary concern is that his property value would be harmed.

An Exxon spokesman said Mr. Tillerson declined to comment. The company "has no involvement in the legal matter" and its directors weren't told of Mr. Tillerson's participation, the spokesman said.

The dispute over the 160-foot water tower goes beyond possible nuisances related to fracking. Among the issues raised: whether a water utility has to obey local zoning ordinances and what are the rights of residents who relied on such laws in making multi-million-dollar property investments. The latter point was the focus of Mr. Tillerson's comments at the November council meeting.

The tower would be almost 15 stories tall, adjacent to the 83-acre horse ranch Mr. Tillerson and his wife own and a short distance from their 18-acre homestead. Mr. Tillerson sat for a three-hour deposition in the lawsuit last May, attended an all-day mediation session in September and has spoken out against the tower during at least two Town Council meetings, according to public records and people involved with the case.

The Exxon chief isn't the most vocal or well-known opponent of the tower. He and his wife are suing under the name of their horse ranch, Bar RR Ranches LLC, along with three other couples. The lead plaintiffs are former U.S. House Majority Leader Dick Armey and his wife, who have become fixtures at Town Council meetings.

Mr. Whitten, who also represents the Armeys, said they declined to comment.

The water tower is being built by Cross Timbers Water Supply Corp., a nonprofit utility that has supplied water to the region for half a century. Cross Timbers says that it is required by state law to build enough capacity to serve growing demand.

"We're a high water-usage area," said utility President Patrick McDonald. "People have large lots, lawns, horses, cattle, goats, swimming pools, gardens," he said. Cross Timbers, formerly known as Bartonville Water Supply, said it would sell leftover supplies to energy companies during months when overall demand is low.

Bartonville's population has increased almost 50% since 2000, to about 1,600, according to U.S. figures.

Mr. Tillerson, 61 years old, moved to Bartonville in 2001 and became CEO in 2006. Since 2007, companies have fracked at least nine shale wells within a mile of the Tillerson home, according to Texas regulatory and real-estate records.

The last to do so was XTO Energy Inc., in August 2009, according to Texas regulators. Mr. Tillerson had just begun talks for Exxon to acquire XTO. Four months later, Exxon swallowed its smaller rival for $25 billion, becoming America's biggest gas producer.

XTO drills and fracks hundreds of shale wells a year, and the Exxon unit has said it recycles water and ships it on pipelines where feasible, in part to reduce truck traffic.

In 2011, Bartonville denied Cross Timbers a permit to build the water tower, saying the location was reserved for residences. The water company sued, arguing that it is exempt from municipal zoning because of its status as a public utility.

In May 2012, a state district court judge agreed with Cross Timbers and compelled the town to issue a permit. The utility resumed construction as the town appealed the decision.

Later that year, the Armeys, the Tillersons and their co-plaintiffs sued Cross Timbers, saying that the company had promised them it wouldn't build a tower near their properties. They also filed a brief in support of the town's appeal.

Last March, an appellate judge reversed the district judge's decision saying he had overstepped his jurisdiction and sent the case back to the lower court, where it is pending.

Meanwhile, the utility has reached out to Bartonville voters, who in November elected two members to the council who criticized the town's fight against the tower.

"The council is currently evaluating all options," said Bill Scherer, Bartonville's mayor pro tem.

In the wake of the election, Mr. Tillerson was among those who lined up in a windowless hall to address the council. He told officials that he and his wife settled in Bartonville to enjoy a rural lifestyle and invested millions in their property after satisfying themselves that nothing would be built above their tree line, according to the council's audio recording of the meeting.

Allowing the tower in defiance of town ordinances could open the door to runaway development and might prompt him to leave town, Mr. Tillerson told the council. "I cannot stay in a place," he said, "where I do not know who to count on and who not to count on."

Credit: Daniel Gilbert

Subject: Litigation; Meetings; Petroleum industry; Zoning ordinances

Location: Texas United States--US

People: Armey, Dick

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Feb 20, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1500569149

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1500569149?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Chief Joins Lawsuit Raising Ruckus Over Fracking

Author: Gilbert, Daniel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]21 Feb 2014: B.1.

ProQuest document link

Abstract:

The man was Rex Tillerson, chairman and chief executive of Exxon Mobil Corp. He and his neighbors had filed suit to block the tower, saying it is illegal and would create "a noise nuisance and traffic hazards," in part because it would provide water for use in hydraulic fracturing. Mr. Tillerson, 61 years old, moved to Bartonville in 2001 and became CEO in 2006. Since 2007, companies have fracked at least nine shale wells within a mile of the Tillerson home, according to Texas records.

Links: 360 Link to Full Text

Full text:  

BARTONVILLE, Texas -- One evening last November, a tall, white-haired man turned up at a Town Council meeting to protest construction of a water tower near his home in this wealthy community outside Dallas.

The man was Rex Tillerson, chairman and chief executive of Exxon Mobil Corp.

He and his neighbors had filed suit to block the tower, saying it is illegal and would create "a noise nuisance and traffic hazards," in part because it would provide water for use in hydraulic fracturing. Fracking, which requires heavy trucks to haul and pump massive amounts of water, unlocks oil and gas from dense rock and has helped touch off a surge in U.S. energy output.

It also is a core part of Exxon's business.

While the lawsuit Mr. Tillerson joined cites the side effects of fracking, a lawyer representing the Exxon CEO said he hadn't complained about such disturbances. "I have other clients who were concerned about the potential for noise and traffic problems, but he's never expressed that to me or anyone else," said Michael Whitten, who runs a small law practice in Denton, Texas. Mr. Whitten said Mr. Tillerson's primary concern is that his property value would be harmed.

An Exxon spokesman said Mr. Tillerson declined to comment. The company "has no involvement in the legal matter" and its directors weren't told of Mr. Tillerson's participation, the spokesman said.

The dispute goes beyond possible nuisances related to fracking. Among the issues raised: whether a water utility has to obey local zoning ordinances and what are the rights of residents who relied on such laws in making multi-million-dollar property investments. The latter point was the focus of Mr. Tillerson's comments at the November council meeting.

The tower would be almost 15 stories tall, adjacent to the 83-acre horse ranch Mr. Tillerson and his wife own and a short distance from their 18-acre homestead. Mr. Tillerson sat for a three-hour deposition in the lawsuit last May, attended an all-day mediation session in September and has spoken out against the tower during at least two Town Council meetings, according to public records and people involved with the case.

The Exxon chief isn't the most vocal or well-known opponent of the tower. He and his wife are suing with three other couples. The lead plaintiffs are former U.S. House Majority Leader Dick Armey and his wife, who have become fixtures at Town Council meetings.

Mr. Whitten, who also represents the Armeys, said they declined to comment.

The water tower is being built by Cross Timbers Water Supply Corp., a nonprofit utility that has supplied water to the region for half a century. Cross Timbers says that it is required by state law to build enough capacity to serve growing demand.

"We're a high water-usage area," said utility President Patrick McDonald. "People have large lots, lawns, horses, cattle, goats, swimming pools, gardens," he said. Cross Timbers said it would sell leftover supplies to energy companies during months when overall demand is low.

Bartonville's population has increased almost 50% since 2000, to about 1,600, according to U.S. figures.

Mr. Tillerson, 61 years old, moved to Bartonville in 2001 and became CEO in 2006. Since 2007, companies have fracked at least nine shale wells within a mile of the Tillerson home, according to Texas records.

The last to do so was XTO Energy Inc., in August 2009, according to Texas regulators. Mr. Tillerson had just begun talks for Exxon to acquire XTO. Four months later, Exxon swallowed its smaller rival for $25 billion, becoming America's biggest gas producer.

XTO drills and fracks hundreds of shale wells a year, and the Exxon unit has said it recycles water and ships it on pipelines where feasible, in part to reduce truck traffic.

In 2011, Bartonville denied Cross Timbers a permit to build the water tower, saying the location was reserved for residences. The water company sued, arguing that it is exempt from municipal zoning because of its status as a public utility.

In May 2012, a state district court judge agreed with Cross Timbers and compelled the town to issue a permit. The utility resumed construction as the town appealed the decision.

Later that year, the Armeys, the Tillersons and their co-plaintiffs sued Cross Timbers, saying that the company had promised them it wouldn't build a tower near their properties. They also filed a brief in support of the town's appeal.

Last March, an appellate judge reversed the district judge's decision saying he had overstepped his jurisdiction and sent the case back to the lower court, where it is pending.

Meanwhile, the utility has reached out to Bartonville voters, who in November elected two members to the council who criticized the town's fight against the tower.

"The council is currently evaluating all options," said Bill Scherer, Bartonville's mayor pro tem.

In the wake of the election, Mr. Tillerson was among those who lined up in a windowless hall to address the council. He told officials that he and his wife settled in Bartonville to enjoy a rural lifestyle and invested millions in their property after satisfying themselves that nothing would be built above their tree line, according to the council's audio recording of the meeting.

Allowing the tower in defiance of town ordinances could open the door to runaway development and might prompt him to leave town, Mr. Tillerson told the council. "I cannot stay in a place," he said, "where I do not know who to count on and who not to count on."

View Image - Enlarge this image.

Credit: By Daniel Gilbert

Subject: Litigation; Meetings; Petroleum industry; Zoning ordinances; State court decisions; Hydraulic fracturing; Environmental protection

Location: Texas United States--US

People: Armey, Dick Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 9190: United States; 9110: Company specific; 4330: Litigation; 8510: Petroleum industry

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2014

Publication date: Feb 21, 2014

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1500655860

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1500655860?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon Mobil Projects Decline in Capital Spending; Energy Company Still Expects To Start a Record Number of Major Projects This Year

Author: Stynes, Tess

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Mar 2014: n/a.

ProQuest document link

Abstract:

Significant projects scheduled to start up this year include a liquefied natural gas project in Papua New Guinea and the largest offshore oil and gas platform in Russia.

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Exxon Mobil Corp. said Wednesday that its capital spending will decline roughly 6.4% in 2014 after peaking last year.

The oil giant expects to spend $39.8 billion this year on production projects and other such expenses, down from a peak of $42.5 billion in 2013. Looking ahead, capital expenditures excluding any potential acquisitions are expected to average less than $37 billion a year from 2015 to 2017, the company said.

The oil giant's Chairman and Chief Executive Rex W. Tillerson on Wednesday outlined the company's objectives for 2014 at Exxon's annual investment analyst meeting in New York.

Exxon shares, which have risen 7.7% over the past year, fell 2.7% in midday trading Wednesday as investors digested the company's production plans. The stock was the biggest decliner Wednesday on the Dow Jones Industrial Average and S&P 500 indexes.

The company said it still expects to start production at a record 10 major projects this year, which will include an increase in more profitable liquids and liquids-linked natural gas volumes.

Significant projects scheduled to start up this year include a liquefied natural gas project in Papua New Guinea and the largest offshore oil and gas platform in Russia.

"These projects exemplify our focus on maintaining a diversified portfolio and highlight our ability to grow profitable volumes," Mr. Tillerson said.

Exxon projects that liquids production will increase 2% this year and 4% annually from 2015 to 2017. The company expects liquids and liquids linked natural gas will account for 69% of its total production by 2017.

Credit: Tess Stynes

Subject: Natural gas; Petroleum industry

Location: New York

People: Tillerson, Rex W

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Mar 5, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1504237416

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1504237416?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon Gets the Joke

Author: Denning, Liam

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Mar 2014: n/a.

ProQuest document link

Abstract:

Exxon's emphasis is the right one and, even if production targets are lower, growth is still expected and higher returns and free cash flow should offer support for its valuation.

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Full text:  

When Chief Executive Rex Tillerson kicked off Exxon Mobil's annual analyst meeting in New York Wednesday, it was clear something had changed.

The Texan didn't crack his usual jokes about New York being nice for a visit--emphasis on "visit"--or its late winter weather. Instead, he launched straight into a detailed strategy presentation.

Perhaps Exxon is feeling the pressure. It isn't alone: The entire industry is in the same boat.

Investors want the oil majors to rein in spending. Bloated investment budgets, being plowed into projects of which many aren't yet producing profits, have depressed return on capital. Doug Terreson at ISI Group calculates that Exxon's capital employed swelled by 44% over the past five years, even as tax-adjusted operating profit fell 24%.

So Exxon has listened and joined the pack in promising to cut capital expenditure this year and beyond. Two thirds of the oil majors now forecast a decline in spending this year, according to Tudor, Pickering, Holt. This should reverse the downward trend in return on capital, especially as fields developed during the investment boom start producing. It should also free cash for higher dividends or share buybacks.

And yet, Exxon's stock dropped nearly 3%, making it one of the S&P 500's worst performers Wednesday. The likely reason for this is that Exxon also cut its production targets as it emphasizes returns over growth. To a degree, the market's reaction is perverse: Exxon's emphasis is the right one and, even if production targets are lower, growth is still expected and higher returns and free cash flow should offer support for its valuation.

The flip side, however, is that Exxon, like many of its peers, must rebuild credibility. It has missed production targets many times before and has let competitors such as Chevron close the gap in terms of profitability. Having spent big in recent years, Exxon must now prove it can actually deliver the returns on those dollars.

Credit: Liam Denning

Subject: Investments; Petroleum industry; Capital expenditures

Location: New York

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Mar 5, 2014

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1504269625

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1504269625?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Says Russian Projects Remain on Track; Company Expects to Drill Arctic Well and Start Pumping Off Country's Eastern Coast This Year

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Mar 2014: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. has more at stake in Russia than any other U.S. energy company but is confident its projects will remain on track despite recent tensions between the West and the Kremlin.

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Full text:  

Exxon Mobil Corp. has more at stake in Russia than any other U.S. energy company but is confident its projects will remain on track despite recent tensions between the West and the Kremlin.

"There has been no impact on any of our plans or activities at this point, nor would I expect there to be any, barring governments taking steps that are beyond our control," Chief Executive Rex Tillerson said Wednesday at the company's annual meeting with analysts in New York. "We don't see any new challenges out of the current situation."

After years of investments, Exxon is supposed to start pumping oil and gas this year from a major field off Russia's eastern coast and drill the company's first well in Russia's Arctic seas, which could hold billions of barrels of oil.

Though Exxon said those endeavors will proceed on schedule, the company is putting plans on hold to explore for petroleum in Ukraine's Black Sea because of unrest there, executives said.

And some analysts are taking the company's reassurances about the Russian situation with a grain of salt as the West urges Russia to withdraw its military from Ukraine's Crimean region.

"They have tremendous interest in having this thing blow over," said Fadel Gheit, an analyst at Oppenheimer & Co.

The uproar over Ukraine comes as Exxon faces concern from investors about its ability to find new reserves of oil and gas and over the costs of doing so. The company said it planned to cut capital spending and scaled back its estimates for increasing oil and gas output over the next three years by about 10%. It cited the disposal of some less-profitable properties and delays in some of its biggest projects in Kazakhstan and Australia.

Exxon's shares fell $2.72, or 2.8%, to close at $93.80 Wednesday on the New York Stock Exchange.

Mr. Tillerson knows Russia's political landscape well. He cemented his rise within Exxon more than a decade ago by negotiating a deal that gave the company access to substantial oil fields off Sakhalin Island in Russia's far east.

As CEO, Mr. Tillerson has steered Exxon into a tighter alliance with the Kremlin, sealing a deal with state-controlled Rosneft to explore an area of Russia's Arctic that is bigger than Texas. The venture that will cost more than $3.2 billion.

The 2011 deal was signed in the presence of Russian President Vladimir Putin at his vacation home on the Black Sea. The partnership was broadened a year ago, allowing Rosneft to acquire stakes in some of Exxon's oil and gas projects in the Gulf of Mexico. Mr. Tillerson's biography on Exxon's website mentions the Order of Friendship he was awarded last year by Mr. Putin.

Exxon is preparing to drill its first well later this year in the Arctic's frozen Kara Sea. It is among the most closely watched wells in the world, analysts say, a prospect that alone could hold billions of barrels of oil.

The company also plans to test the oil potential of a dense layer of rock in western Siberia called the Bazhenov Shale.

If Exxon is successful in Russia, it would still take years to pump meaningful amounts of oil and gas from the Arctic. But the projects loom large for the company as it scours the globe seeking new sources of petroleum to replace the fuels it drains from the earth each year. Exxon's output has fallen for the last two years, but the company predicts it will add the equivalent of a million new barrels of production by 2017.

Russia needs Exxon's technical expertise and checkbook, analysts say. The company is footing most of the costs of the Arctic exploration and a center for research on drilling in the region.

Sanctions against Russia could stymie Exxon's plans, said Pavel Molchanov, an analyst at Raymond James. "It is certainly a plausible scenario that there will be investment restrictions," he said. He said he didn't expect that an outright ban on Russia's oil and gas exports was likely.

Mr. Tillerson noted that Exxon has weathered sanctions before, in Iran, Iraq and Libya.

"That's just part of the risk we know is there," he said. For countries that want to develop their natural resources, the benefit that Exxon offers "never changes, and it typically survives even when you have changes of governments."

Credit: Daniel Gilbert

Subject: Oil reserves; Petroleum industry

Location: Arctic region Ukraine Russia United States--US Black Sea New York

People: Putin, Vladimir

Company / organization: Name: OAO Rosneft; NAICS: 324110; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: New York Stock Exchange--NYSE; NAICS: 523210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Mar 5, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1504277565

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1504277565?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Corporate News: Exxon CEO: Russian Projects Still on Track

Author: Gilbert, Daniel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]06 Mar 2014: B.3.

ProQuest document link

Abstract:

Exxon Mobil Corp. has more at stake in Russia than any other U.S. energy company but is confident its projects will remain on track despite recent tensions between the West and the Kremlin.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. has more at stake in Russia than any other U.S. energy company but is confident its projects will remain on track despite recent tensions between the West and the Kremlin.

"There has been no impact on any of our plans or activities at this point, nor would I expect there to be any, barring governments taking steps that are beyond our control," Chief Executive Rex Tillerson said Wednesday at the company's annual meeting with analysts in New York. "We don't see any new challenges out of the current situation."

After years of investments, Exxon is supposed to start pumping oil and gas this year from a major field off Russia's eastern coast and drill the company's first well in Russia's Arctic seas, which could hold billions of barrels of oil.

Though Exxon said those endeavors will proceed on schedule, the company is putting plans on hold to explore for petroleum in Ukraine's Black Sea because of unrest there, executives said.

And some analysts are taking the company's reassurances about the Russian situation with a grain of salt as the West urges Russia to withdraw its military from Ukraine's Crimean region.

"They have tremendous interest in having this thing blow over," said Fadel Gheit, an analyst at Oppenheimer & Co.

The uproar over Ukraine comes as Exxon faces concern from investors about its ability to find new reserves of oil and gas and over the costs of doing so. The company said it planned to cut capital spending and scaled back its estimates for increasing oil and gas output over the next three years by about 10%. It cited the disposal of less-profitable properties and delays in some of its biggest projects in Kazakhstan and Australia.

Exxon's shares fell $2.72, or 2.8%, to close at $93.80 Wednesday on the New York Stock Exchange.

Mr. Tillerson knows Russia's political landscape well. He cemented his rise within Exxon more than a decade ago by negotiating a deal that gave the company access to substantial oil fields off Sakhalin Island in Russia's far east.

As CEO, Mr. Tillerson has steered Exxon into a tighter alliance with the Kremlin, sealing a deal with state-controlled Rosneft to explore an area of Russia's Arctic that is bigger than Texas. The venture that will cost more than $3.2 billion.

The 2011 deal was signed in the presence of Russian President Vladimir Putin at his vacation home on the Black Sea. The partnership was broadened a year ago, allowing Rosneft to acquire stakes in some of Exxon's oil and gas projects in the Gulf of Mexico. Mr. Tillerson's biography on Exxon's website mentions the Order of Friendship he was awarded last year by Mr. Putin.

Exxon is preparing to drill its first well later this year in the Arctic's frozen Kara Sea. It is among the most closely watched wells in the world, analysts say, a prospect that alone could hold billions of barrels of oil.

The company also plans to test the oil potential of a dense layer of rock in western Siberia called the Bazhenov Shale.

If Exxon is successful in Russia, it would still take years to pump meaningful amounts of oil and gas from the Arctic. But the projects loom large for the company as it scours the globe seeking new sources of petroleum. Exxon's output has fallen for the last two years, but the company predicts it will add the equivalent of a million new barrels of production by 2017.

Sanctions against Russia could stymie Exxon's plans, said Pavel Molchanov, an analyst at Raymond James. "It is certainly a plausible scenario that there will be investment restrictions," he said. He said he didn't expect that an outright ban on Russia's oil and gas exports was likely.

Mr. Tillerson noted that Exxon has weathered sanctions before, in Iran, Iraq and Libya.

"That's just part of the risk we know is there," he said. For countries that want to develop their natural resources, the benefit that Exxon offers "never changes, and it typically survives even when you have changes of governments."

Credit: By Daniel Gilbert

Subject: Oil reserves; Petroleum industry; International relations-US

Location: Russia United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 9190: United States; 8510: Petroleum industry

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2014

Publication date: Mar 6, 2014

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1504364050

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1504364050?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon Agrees to Disclose Its 'Carbon Risk'; Shareholder Resolution Is Withdrawn on Promise of Environmental Report

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Mar 2014: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. has agreed to disclose how the regulation of carbon emissions could affect the value of its oil and gas holdings, a sign that America's biggest energy company is stepping up efforts to address shareholders' environmental concerns.

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Full text:  

Exxon Mobil Corp. has agreed to disclose how the regulation of carbon emissions could affect the value of its oil and gas holdings, a sign that America's biggest energy company is stepping up efforts to address shareholders' environmental concerns.

The oil giant will publish a report later this month explaining how it weighs the risks that regulations could make it prohibitively expensive to tap oil and gas, according to Arjuna Capital, an investment management firm focused on social responsibility that submitted a shareholder resolution asking for such a report.

Exxon is set to disclose a range of measures in the report, including a calculation of the carbon emissions that its operations give off and a discussion of how it incorporates the risk of regulation into its spending plans.

Arjuna said it withdrew the shareholder resolution after Exxon became the first major energy company to agree to provide the information.

David Rosenthal, Exxon's head of investor relations, told Arjuna earlier this month that the company is making "an extensive outreach this year" to shareholders concerned about carbon, greenhouse-gas emissions and hydraulic fracturing, among other environmental issues, according to correspondence reviewed by The Wall Street Journal.

An Exxon spokesman declined to comment.

For years, Exxon has assumed that there will be a cost from government regulations designed to limit carbon emissions from fossil-fuel use, as concerns mount over their impact on the climate. In developed countries such as the U.S. and in Europe at the vanguard of such policies, Exxon assumes that carbon emissions will cost about $80 per ton in 2040.

But the Irving, Texas, giant is taking that a step further with agreeing to detail how it weighs the risks of carbon regulations.

"I think it reflects a shift in priorities and understanding at the company," said Natasha Lamb, director of equity research and shareholder engagement at Arjuna. Regulations that tax carbon could make it more expensive to develop much of Exxon's reserves, especially those that require costly technologies to tap, such as mining heavy, tar-like crude in Canada, she said.

"If companies are spending a fortune to develop unconventional assets, there's not a lot of wiggle room when it comes to the margins," she said.

The proposal submitted by Arjuna, in concert with environmental advocacy group As You Sow, is the first to seek such disclosure from Exxon.

In announcing the agreement, Arjuna and As You Sow said, "The report will provide investors with greater transparency into how ExxonMobil plans for a future where market forces and climate regulation makes at least some portion of its carbon reserves unburnable."

Last year, a similar carbon-risk shareholder resolution at Consol Energy Inc., a coal and natural-gas company, received support from 20% of votes cast by shareholders. The groups have filed such proposals at nine companies this year in addition to Exxon, they said.

Some of the items to be covered in the new report are already disclosed in some detail by Exxon, such as the makeup of its oil and gas reserves by region and type of fuel. Of the 25.2 billion barrels of oil and the equivalent in natural gas that Exxon books as reserves, nearly a third are in the U.S. or Europe, according to a February filing with the U.S. Securities and Exchange Commission. That doesn't include the 3.6 billion barrels of bitumen, a thick kind of crude, in Canada and South America.

Credit: Daniel Gilbert

Subject: Natural gas reserves; Oil reserves; Emissions; Environmental protection

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Mar 20, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1508841888

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1508841888?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon to Disclose 'Emissions Risk'

Author: Gilbert, Daniel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]21 Mar 2014: B.1.

ProQuest document link

Abstract:

Exxon Mobil Corp. has agreed to disclose how the regulation of carbon emissions could affect the value of its oil and gas holdings, a sign that America's biggest energy company is stepping up efforts to address shareholders' environmental concerns.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. has agreed to disclose how the regulation of carbon emissions could affect the value of its oil and gas holdings, a sign that America's biggest energy company is stepping up efforts to address shareholders' environmental concerns.

The oil giant will publish a report later this month explaining how it weighs the risks that regulations could make it prohibitively expensive to tap oil and gas, according to Arjuna Capital, an investment management firm focused on social responsibility that submitted a shareholder resolution asking for such a report.

Exxon is set to disclose a range of measures in the report, including a calculation of the carbon emissions that its operations give off and a discussion of how it incorporates the risk of regulation into its spending plans.

Arjuna said it withdrew the shareholder resolution after Exxon became the first major energy company to agree to provide the information.

David Rosenthal, Exxon's head of investor relations, told Arjuna earlier this month that the company is making "an extensive outreach this year" to shareholders concerned about carbon, greenhouse-gas emissions and hydraulic fracturing, among other environmental issues, according to correspondence reviewed by The Wall Street Journal.

An Exxon spokesman declined to comment.

For years, Exxon has assumed that there will be a cost from government regulations designed to limit carbon emissions from fossil-fuel use, as concerns mount over their impact on the climate. In developed countries such as the U.S. and in Europe at the vanguard of such policies, Exxon assumes that carbon emissions will cost about $80 per ton in 2040.

But the Irving, Texas, giant is taking that a step further with agreeing to detail how it weighs the risks of carbon regulations.

"I think it reflects a shift in priorities and understanding at the company," said Natasha Lamb, director of equity research and shareholder engagement at Arjuna. Regulations that tax carbon could make it more expensive to develop much of Exxon's reserves, especially those that require costly technologies to tap, such as mining heavy, tar-like crude in Canada, she said.

"If companies are spending a fortune to develop unconventional assets, there's not a lot of wiggle room when it comes to the margins," she said.

The proposal submitted by Arjuna, in concert with environmental advocacy group As You Sow, is the first to seek such disclosure from Exxon.

In announcing the agreement, Arjuna and As You Sow said, "The report will provide investors with greater transparency into how ExxonMobil plans for a future where market forces and climate regulation makes at least some portion of its carbon reserves unburnable."

Last year, a similar carbon-risk shareholder resolution at Consol Energy Inc., a coal and natural-gas company, received support from 20% of votes cast by shareholders. The groups have filed such proposals at nine companies this year in addition to Exxon, they said.

Some of the items to be covered in the new report are already disclosed in some detail by Exxon, such as the makeup of its oil and gas reserves by region and type of fuel. Of the 25.2 billion barrels of oil and the equivalent in natural gas that Exxon books as reserves, nearly a third are in the U.S. or Europe, according to a February filing with the U.S. Securities and Exchange Commission. That doesn't include the 3.6 billion barrels of bitumen, a thick kind of crude, in Canada and South America.

Credit: By Daniel Gilbert

Subject: Natural gas reserves; Oil reserves; Environmental protection; Valuation; Emissions control; Disclosure

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 9180: International; 8510: Petroleum industry; 1540: Pollution control

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2014

Publication date: Mar 21, 2014

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1508925764

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1508925764?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Furth er reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon: Climate Regulations Don't Threaten the Value of its Reserves; Company Responds to Shareholder Pressure

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 Mar 2014: n/a.

ProQuest document link

Abstract:

Exxon's view came as the United Nations Intergovernmental Panel on Climate Change issued a report Monday that found that global warming is already having an impact and called for steps to slow its effects.

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Full text:  

Exxon Mobil Corp. says future regulations to protect the climate don't threaten the value of its oil and gas reserves, arguing that economies will need the fuels too much to embrace drastic cuts in greenhouse-gas emissions.

In response to shareholder pressure, the U.S.'s biggest energy company, published two reports Monday affirming that climate change poses a risk to society. But Exxon pushed back against investor concerns that potential restrictions on burning fossil fuels will make it too expensive for Exxon to pump its oil and gas, calling such a scenario "highly unlikely."

"We are confident that none of our hydrocarbon reserves are now or will become 'stranded,'" Exxon said in one report published on its website, responding to a request from several sustainability-focused groups representing shareholders.

Exxon's view came as the United Nations Intergovernmental Panel on Climate Change issued a report Monday that found that global warming is already having an impact and called for steps to slow its effects. Separately, the White House last week directed federal agencies to limit greenhouse-gas emissions as part of a broader effort to tackle climate change.

Investors will continue to push the company to account for increased restrictions on carbon emissions, said Andrew Logan of Ceres, an advocacy group that helped coordinate proposals seeking disclosure on climate change.

Exxon has long assumed that regulations will make it more expensive to produce oil and gas, and estimates a cost of $80 a ton of carbon emissions by 2040 in Western countries. But the company said that cutting such emissions by 80% through that time frame, a target some scientists say is needed to slow global warming, would cost the average U.S. household almost $2,350 a year in additional energy expenses.

While such a scenario is possible, Exxon said, "it is difficult to envision governments choosing this path in light of the negative implications for economic growth and prosperity that such a course poses."

The Irving, Texas-based oil company estimates that the world will consume 35% more energy in 2040 than today and contends renewable sources of energy, like wind and solar power, aren't enough to meet that demand. Instead, Exxon is focusing on burning energy more efficiently and cutting emissions.

Footnoted in the two reports are hints of how Exxon plans to use concerns over climate to its advantage, by promoting natural gas as a fuel that gives off fewer emissions than coal or oil. The U.S.'s biggest gas producer, Exxon is among several companies seeking permits to export the fuel abroad where prices are higher.

Allowing U.S. companies to export domestic gas, Exxon noted, "could further the adoption of this cleaner-burning fuel by countries that currently rely on more carbon-intensive forms of energy."

Credit: Daniel Gilbert

Subject: Climate change; Emissions; Global warming; Carbon; Emission standards; Natural gas; Natural gas reserves; Oil reserves

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Mar 31, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1511460316

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Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Corporate News: Exxon Defends Value of Reserves

Author: Gilbert, Daniel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]01 Apr 2014: B.7.

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Exxon's view came as the United Nations Intergovernmental Panel on Climate Change issued a report Monday that found that global warming is already having an impact and called for steps to slow its effects.

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Exxon Mobil Corp. says future regulations to protect the climate don't threaten the value of its oil and gas reserves, arguing that economies will need the fuels too much to embrace drastic cuts in greenhouse-gas emissions.

In response to shareholder pressure, the U.S.'s biggest energy company, published two reports Monday affirming that climate change poses a risk to society. But Exxon pushed back against investor concerns that potential restrictions on burning fossil fuels will make it too expensive for Exxon to pump its oil and gas, calling such a scenario "highly unlikely."

"We are confident that none of our hydrocarbon reserves are now or will become 'stranded,' " Exxon said in one report published on its website, responding to a request from several sustainability-focused groups representing shareholders.

Exxon's view came as the United Nations Intergovernmental Panel on Climate Change issued a report Monday that found that global warming is already having an impact and called for steps to slow its effects.

Separately, the White House last week directed federal agencies to limit greenhouse-gas emissions as part of a broader effort to tackle climate change.

Investors will continue to push the company to account for increased restrictions on carbon emissions, said Andrew Logan of Ceres, an advocacy group that helped coordinate proposals seeking disclosure on climate change.

Exxon has long assumed that regulations will make it more expensive to produce oil and gas, and estimates a cost of $80 a ton of carbon emissions by 2040 in Western countries. But the company said that cutting such emissions by 80% through that time frame, a target some scientists say is needed to slow global warming, would cost the average U.S. household almost $2,350 a year in additional energy expenses.

While such a scenario is possible, Exxon said, "it is difficult to envision governments choosing this path in light of the negative implications for economic growth and prosperity that such a course poses."

The Irving, Texas-based oil company estimates that the world will consume 35% more energy in 2040 than today and contends renewable sources of energy, like wind and solar power, aren't enough to meet that demand. Instead, Exxon is focusing on burning energy more efficiently and cutting emissions.

Footnoted in the two reports are hints of how Exxon plans to use concerns over climate to its advantage, by promoting natural gas as a fuel that gives off fewer emissions than coal or oil. The U.S.'s biggest gas producer, Exxon is among several companies seeking permits to export the fuel abroad where prices are higher.

Allowing U.S. companies to export domestic gas, Exxon noted, "could further the adoption of this cleaner-burning fuel by countries that currently rely on more carbon-intensive forms of energy."

Credit: By Daniel Gilbert

Subject: Climate change; Emissions; Federal regulation; Natural gas reserves; Oil reserves

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 8510: Petroleum industry; 4310: Regulation; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.7

Publication year: 2014

Publication date: Apr 1, 2014

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1511497958

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Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Agrees to Disclose Fracking Risks; Oil-and-Gas Producer to Detail How It Manages Impact on Air, Water, Chemicals Involved

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Apr 2014: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. agreed to publicly disclose more details on the risks of hydraulic fracturing of oil and gas wells, reversing a long-held opposition after negotiations with environmental groups and investors.

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Exxon Mobil Corp. agreed to publicly disclose more details on the risks of hydraulic fracturing of oil and gas wells, reversing a long-held opposition after negotiations with environmental groups and investors.

The Texas oil company's decision is the latest evidence of a shift by Exxon's top executives to address growing environmental worries about fracking, a contentious energy production technique in some North American communities.

The nation's biggest energy company is expected to report by September how it manages risks from fracking in shale-rock formations, including impacts to air quality, water and chemical usage as well as damage to roads, according to correspondence reviewed by The Wall Street Journal.

Exxon's disclosures are a response to a shareholder proposal brought by the New York City comptroller and social-responsibility advocate As You Sow, which agreed to withdraw the measure ahead of the company's annual meeting next month.

The move is hardly a surrender to environmental interests, but does indicate a greater push by executives to press their case for oil and gas development at a time when public opposition to domestic drilling has unnerved some in the industry. But Exxon's forthcoming report won't include some measures sought by the shareholders, such as data on methane that leaks from its operations into the atmosphere, though it agreed to explore disclosing some metrics in the future.

Scott Stringer, New York City's comptroller, called Exxon's agreement a meaningful step, adding that he will continue to seek the disclosure of hard data.

An Exxon spokesman called the agreement "a productive evolution of our relationship with some of these shareholder groups."

Earlier this week the company published reports on how it would be affected by regulations limiting carbon emissions, arguing that its oil and gas reserves aren't at risk. The company also called on the U.S. to allow more exports of natural gas to supplant fuels that emit more carbon abroad, a policy that would help Exxon as the country's biggest gas producer.

The new disclosures mark a change in tone for Exxon.

When a shareholder at the company's annual meeting in 2011 said Exxon wasn't providing enough detail about its environmental performance, Chief Executive Rex Tillerson responded, "You're just wrong." Last year, in response to a shareholder proposal seeking a report on fracking impacts, Exxon said "the minimal environmental impacts of hydraulic fracturing have been well-documented" and that more disclosure was unnecessary.

But there are signs that opposition is growing against fracking--a technique that uses a stream of water, sand and chemicals to release oil and gas trapped in dense layers of rock. The Pew Research Center found that 49% of Americans surveyed opposed fracking in September 2013, up from 38% last March.

In Pennsylvania, home to the natural gas-rich Marcellus Shale, the state's Supreme Court in December ruled that towns could use zoning powers to limit where companies can drill. In Colorado, three municipalities last year banned fracking, and environmental groups are seeking to put a measure on a statewide ballot that would permit local governments to restrict it.

"I think attitudes are shifting," said Fred Krupp, president of the Environmental Defense Fund, which worked with Anadarko Petroleum Corp., Noble Energy Inc. and Encana Corp. in Colorado to pass legislation last year curbing methane emissions from drilling.

In addition to Exxon, shareholders this year filed proposals for fracking-related disclosures at five other companies, according to As You Sow. One other company, natural-gas producer EQT Corp., agreed to provide disclosure that satisfied the filers enough to withdraw the proposal.

"We appreciated the dialogue we had" with the shareholder that filed the proposal, said EQT spokeswoman Natalie Cox. "We were happy to be able to supply them with the information that allowed them to withdraw their proposal."

Exxon has faced a shareholder vote on the fracking resolution every year since 2010, when it acquired shale-gas producer XTO Energy Inc. for $25 billion and became America's largest gas producer. The proposal was supported by about 30% of votes cast in each of the last four years.

"It does feel like Exxon is changing the way it's doing business," said Danielle Fugere, president of As You Sow. But if the company's disclosure report disappoints, "we did reserve our right to bring a resolution next year."

Credit: Daniel Gilbert

Subject: Hydraulic fracturing; Natural gas reserves; Petroleum industry; Environmental protection

Location: New York Texas

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Apr 3, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1512417463

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1512417463?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further r eproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Corporate News: Exxon to Detail Fracking Risks --- Shareholder Agreement to Cover How It Manages Air, Water and Chemical Use

Author: Gilbert, Daniel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]04 Apr 2014: B.3.

ProQuest document link

Abstract:

Exxon Mobil Corp. agreed to publicly disclose more details on the risks of hydraulic fracturing of oil and gas wells, reversing a long-held opposition after negotiations with environmental groups and investors.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. agreed to publicly disclose more details on the risks of hydraulic fracturing of oil and gas wells, reversing a long-held opposition after negotiations with environmental groups and investors.

The Texas oil company's decision is the latest evidence of a shift by Exxon's top executives to address growing environmental worries about fracking, a contentious energy production technique in some North American communities.

The nation's biggest energy company is expected to report by September how it manages risks from fracking in shale-rock formations, including impacts to air quality, water and chemical usage as well as damage to roads, according to correspondence reviewed by The Wall Street Journal.

Exxon's disclosures are a response to a shareholder proposal brought by the New York City comptroller and social-responsibility advocate As You Sow, which agreed to withdraw the measure ahead of the company's annual meeting next month.

The move is hardly a surrender to environmental interests, but does indicate a greater push by executives to press their case for oil and gas development at a time when public opposition to domestic drilling has unnerved some in the industry. But Exxon's forthcoming report won't include some measures sought by the shareholders, such as data on methane that leaks from its operations into the atmosphere, though it agreed to explore disclosing some metrics in the future.

Scott Stringer, New York City's comptroller, called Exxon's agreement a meaningful step, adding that he will continue to seek the disclosure of hard data.

An Exxon spokesman called the agreement "a productive evolution of our relationship with some of these shareholder groups."

Earlier this week the company published reports on how it would be affected by regulations limiting carbon emissions, arguing that its oil and gas reserves aren't at risk. The company also called on the U.S. to allow more exports of natural gas to supplant fuels that emit more carbon abroad, a policy that would help Exxon as the country's biggest gas producer.

The new disclosures mark a change in tone for Exxon.

When a shareholder at the company's annual meeting in 2011 said Exxon wasn't providing enough detail about its environmental performance, Chief Executive Rex Tillerson responded, "You're just wrong." Last year, in response to a shareholder proposal seeking a report on fracking impacts, Exxon said that "the minimal environmental impacts of hydraulic fracturing have been well-documented" and that more disclosure was unnecessary.

But there are signs that opposition is growing against fracking -- a technique that uses a stream of water, sand and chemicals to release oil and gas trapped in dense layers of rock. The Pew Research Center found that 49% of Americans surveyed opposed fracking in September 2013, up from 38% last March.

In Pennsylvania, home to the natural gas-rich Marcellus Shale, the state's Supreme Court in December ruled that towns could use zoning powers to limit where companies can drill. In Colorado, three municipalities last year banned fracking, and environmental groups are seeking to put a measure on a statewide ballot that would permit local governments to restrict it.

"I think attitudes are shifting," said Fred Krupp, president of the Environmental Defense Fund, which worked with Anadarko Petroleum Corp., Noble Energy Inc. and Encana Corp. in Colorado to pass legislation last year curbing methane emissions from drilling.

In addition to Exxon, shareholders this year filed proposals for fracking-related disclosures at five other companies, according to As You Sow. One other company, natural-gas producer EQT Corp., agreed to provide disclosure that satisfied the filers enough to withdraw the proposal.

"We appreciated the dialogue we had" with the shareholder that filed the proposal, said EQT spokeswoman Natalie Cox. "We were happy to be able to supply them with the information."

Exxon has faced a shareholder vote on the fracking resolution every year since 2010, when it acquired shale-gas producer XTO Energy Inc. and became America's largest gas producer. The proposal was supported by about 30% of votes cast in each of the last four years.

"It does feel like Exxon is changing the way it's doing business," said Danielle Fugere, president of As You Sow. But if the company's disclosure report disappoints, "we did reserve our right to bring a resolution next year."

Credit: By Daniel Gilbert

Subject: Natural gas reserves; Petroleum industry; Environmental protection; Hydraulic fracturing; Disclosure; Environmental impact

Location: New York Texas

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 9190: United States; 1520: Energy policy; 1530: Natural resources; 8510: Petroleum industry

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2014

Publication date: Apr 4, 2014

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1512496192

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1512496192?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon CEO 2013 Total Compensation Down 30%; Rex Tillerson's 2012 Pay Included Hefty Benefit From Pension Value Change

Author: Prior, Anna

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Apr 2014: n/a.

ProQuest document link

Abstract:

The world's largest publicly traded oil company is also the largest natural gas producer in the U.S. since its $25 billion acquisition of XTO Energy Inc. in 2010.

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Exxon Mobil Corp. Chairman and Chief Executive Rex Tillerson's total compensation declined 30% to $28.1 million in 2013, as the previous year included a hefty benefit from a change in pension value.

Mr. Tillerson received about $2.7 million in base salary, $150,000 more than a year earlier, and cash bonuses totaling $3.7 million, down from about $4.6 million in 2012.

He also received stock awards valued at about $21.3 million, an 8.3% increase from 2012, according to the company's proxy filing.

Mr. Tillerson's compensation package for 2012 was propped up by more than $13 million due to a change in pension value and nonqualified deferred compensation earnings. In contrast, last year's change in pension value was negative, but SEC regulations don't allow for inclusion of negative pension amounts in the proxy summary compensation tables, the company said. Reflecting the pension change, his pay for 2013 was $21.9 million.

Other Exxon top executives saw their base salaries increase, with Senior Vice President Andrew Swiger receiving $1.1 million in 2013, up from $962,000 in 2012. Another senior vice president, Mark Albers, received a 7.1% increase in base salary to $1.1 million, while Senior Vice President Michael Dolan's base salary rose 9% to $1.2 million. And Stephen Pryor, Exxon vice president and president of ExxonMobil Chemical Co., received a 3.4% increase in base salary to $1 million.

The world's largest publicly traded oil company is also the largest natural gas producer in the U.S. since its $25 billion acquisition of XTO Energy Inc. in 2010. Exxon has added to its shale-gas assets through additional deals since then.

Exxon spent more money but pumped less oil and natural gas last year, leading to a 27% drop in profit for America's biggest energy producer, the company reported in January.

Credit: Anna Prior

Subject: Executive compensation; Petroleum industry; Wages & salaries; Natural gas

Location: United States--US

Company / organization: Name: ExxonMobil Chemical Co; NAICS: 325212, 325220; Name: XTO Energy Inc; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Apr 11, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1514956323

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1514956323?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon CEO Tillerson Withdraws From Lawsuit Against Water Tower Near His Ranch; Litigation From Other Plaintiffs Still Going Forward

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Apr 2014: n/a.

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Abstract:

Rex Tillerson, chief executive of Exxon Mobil Corp., has withdrawn from a lawsuit seeking to demolish a water tower near his horse ranch in north Texas, according to court records reviewed by The Wall Street Journal.

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Rex Tillerson, chief executive of Exxon Mobil Corp., has withdrawn from a lawsuit seeking to demolish a water tower near his horse ranch in north Texas, according to court records reviewed by The Wall Street Journal.

Mr. Tillerson, his wife and their neighbors in the town of Bartonville, northwest of Dallas, have claimed that the 160-foot-tall tower was illegally built and an eyesore. The latest version of the lawsuit, filed last year, also said that the tower owner's plans to sell water to energy companies for hydraulic fracturing would create noise and traffic hazards.

An Exxon spokesman said Friday that Mr. Tillerson and the company declined to comment.

Michael Whitten, a lawyer representing Mr. Tillerson and the remaining plaintiffs in the case, didn't respond to requests for comment. Mr. Whitten has said that the Exxon CEO was primarily concerned about the aesthetics of the tower and its impact on his property values.

Court records show that a judge dismissed Mr. Tillerson and his wife as plaintiffs on March 22, weeks after the Journal reported their involvement. The order leaves them the option of refiling their complaints.

The tower, adjacent to the Tillersons' 83-acre horse ranch and near their homestead, doesn't comply with Bartonville's zoning laws.

But the owner, Cross Timbers Water Supply Corp., says it isn't bound by local ordinances and it needs the tower to meet increasing demand for water in the growing community. Assuming the tower is completed, the utility plans to sell water to energy companies during months when overall demand is low.

Patrick McDonald, Cross Timbers's president, declined to comment Friday.

The tower has been in legal limbo for the past year. An appellate court in March 2013 reversed a district judge's ruling that allowed construction of the tower and sent the case back to the lower court, where it remains pending.

The Tillersons' withdrawal doesn't spell an end to the water-tower litigation. The remaining plaintiffs, including former U.S. House Majority Leader Dick Armey, last month filed a motion seeking a court order to tear down the tower immediately.

Credit: Daniel Gilbert

Subject: Petroleum industry; Litigation; Federal court decisions

Location: Texas

People: Gilbert, Daniel Armey, Dick

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Apr 18, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1517457718

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Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibit ed without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Court Rejects Exxon Mobil Appeal of $105 Million Verdict

Author: Anonymous

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Apr 2014: n/a.

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Abstract: None available.

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The Supreme Court has declined to disturb a $105 million verdict against Exxon Mobil for contaminating New York City's groundwater.

The justices had no comment Monday on their order rejecting Exxon Mobil Corp.'s appeal of the 2009 verdict the city won for the costs of removing a gasoline additive known as MTBE from drinking wells in Queens.

The city argued that the company ignored warnings from its own scientists and engineers not to use the additive in areas that use groundwater for drinking. Exxon Mobil argued that the city's alleged injuries were too speculative and that MTBE was the safest additive to comply with a federal mandate.

The U.S. Second Circuit Court of Appeals upheld the jury verdict last year.

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Apr 21, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1517914623

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Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon, Chevron Boost Dividends; Two Largest U.S. Oil Companies Raise Quarterly Payouts

Author: Prior, Anna

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Apr 2014: n/a.

ProQuest document link

Abstract:

[...]Chevron, the second-largest U.S. oil company in market value after Exxon, earlier in April said its first-quarter global oil-and-gas production is expected to drop from the year-ago period, as poor weather led to down time in the U.S., Canada and other regions.

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Exxon Mobil Corp. raised its quarterly payout by 9.5% and Chevron Corp. lifted its dividend by 7%.

Chevron said its board declared a quarterly dividend of $1.07 a share, up from $1.00.

Exxon's 69 cent-a-share second-quarter dividend compares with 63 cents a share paid in the first quarter.

Exxon's increased dividend will be payable June 10 to shareholders of record as of May 13, the company said.

Exxon, which is based in Irving, Texas, in January reported that it spent more money but pumped less oil and natural gas last year, leading to a 27% drop in profit for America's biggest energy producer. For the fourth quarter, Exxon said earnings fell 16% on lower production and weaker refining margins.

Those results were the latest sign of the challenges facing Chief Executive Rex Tillerson as he attempts to boost the company's sagging profit and output of oil and gas. To revive them, Mr. Tillerson is betting on striking massive petroleum deposits from Canada's oil sands to Russia's ice-choked seas.

Meanwhile, Chevron, the second-largest U.S. oil company in market value after Exxon, earlier in April said its first-quarter global oil-and-gas production is expected to drop from the year-ago period, as poor weather led to down time in the U.S., Canada and other regions.

Exxon is slated to report first-quarter earnings on Thursday, with Chevron's results expected Friday.

Credit: Anna Prior

Subject: Petroleum industry; Corporate profits; Natural gas

Location: Russia Texas Canada United States--US

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Apr 30, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1520009998

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1520009998?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Exxon Sticks With Russia Despite Ukraine Sanctions; Oil Company Presses Ahead With Rosneft Partnership in Arctic

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 May 2014: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. is pushing ahead with its plans to drill in Russia's Arctic seas--its biggest opportunity to discover untapped deposits of oil and gas--even though deteriorating relations between Moscow and Washington have increased the risks. [...]it has to replace the fuels it pumps every year, an amount equivalent to the entire reserves of rival Hess Corp. By Rosneft's estimates, a quarter of the world's remaining oil-and-gas reserves lie buried beneath Russian-controlled soil.

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Exxon Mobil Corp. is pushing ahead with its plans to drill in Russia's Arctic seas--its biggest opportunity to discover untapped deposits of oil and gas--even though deteriorating relations between Moscow and Washington have increased the risks.

America's biggest energy producer is set this summer to tap what it calls the University Prospect in the Arctic's Kara Sea, a trove that could hold the equivalent of 9 billion barrels of oil--more than a third of Exxon's proven reserves.

That prize looks riskier as tensions increase between the West and Moscow over Russia's incursion in Ukraine. U.S. sanctions this week targeted Igor Sechin, a close associate of President Vladimir Putin and head of OAO Rosneft, Exxon's Kremlin-controlled partner in the Arctic. The sanctions didn't extend to Rosneft itself.

"All of the activities that we had originally planned for this year are under way," David Rosenthal, Exxon's vice president of investor relations, said Thursday of Exxon's plans with Rosneft. Exxon will comply with all sanctions, he said.

Exxon has little choice but to stick with Russia, experts say. The company's first-quarter production fell 5.6% from a year earlier, the latest in a series of declines over the last decade. And it has to replace the fuels it pumps every year, an amount equivalent to the entire reserves of rival Hess Corp.

By Rosneft's estimates, a quarter of the world's remaining oil-and-gas reserves lie buried beneath Russian-controlled soil. That makes the country hard to ignore, especially as governments of other oil-rich countries favor their state-controlled energy companies.

Exxon executives "take the long-term view that hopefully they can weather the near-term storm," said Charles Ebinger, director of the Energy Security Initiative at the Brookings Institution. Exxon and rivals such as BP PLC and Royal Dutch Shell PLC "don't have a lot of choice. They've been denied access to a lot of the promising acreage in the world," he said.

The Irving, Texas, company's most profitable barrels lie outside of the U.S., partly because Exxon hasn't fared well in the U.S. energy boom. It jumped into the U.S. shale frenzy with a $25 billion acquisition of XTO Energy Inc. in 2010, just before natural-gas prices tumbled.

Exxon Chief Executive Rex Tillerson has pledged to improve the company's profit margins. Last year, the company sold some of its stake in an Iraqi project, allowed a less-profitable concession in Abu Dhabi to lapse and continued to reduce spending on gas drilling in North America.

That pruning, combined with a focus on adding more crude from places such as Canada's oil sands, is beginning to pay off. Despite lower output, Exxon's profit from tapping oil and gas jumped 11% in the first quarter from a year earlier. The results were helped by higher natural-gas prices and a steep drop in capital spending to $8.4 billion, the lowest in three years.

The company's first-quarter profit fell 4.2% to $9.1 billion, hurt by weak refining margins.

Exxon's shares fell $1 to close at $101.41 Thursday. But from the first round of U.S. sanctions more than a month ago through Wednesday, Exxon's shares had climbed 8.6%, far outpacing the broader market and adding $34 billion to the company's value.

The rise partly reflects that Exxon faces little risk in the short-term. Russia accounted for about 1% of the company's output last year, and Exxon has yet to invest the years and billions of dollars it would take to unearth the Arctic's energy riches.

The areas of the Kara Sea where Exxon and Rosneft are exploring could hold billions of barrels of oil, the companies have said. It could be decades before the partners can coax meaningful amounts of crude from beneath the frozen sea, which is icebound for most of the year.

Exxon also has leverage with the Russian government, some analysts say, as the Kremlin tries to resuscitate its oil production. Only a few companies in the world--all of them Western--have experience operating in the harsh, Arctic conditions.

Drilling in the Arctic "is unquestionably one of our key projects," Rosneft said Wednesday. Last month the Russian company said it had begun a 55-day expedition with Exxon aboard a nuclear-powered icebreaker to study ice in the Kara Sea.

Exxon has agreed to foot most of the exploration costs, estimated to exceed $3.2 billion, as well an Arctic research center to be based in St. Petersburg, Russia. In return, the U.S. company gets a 33% stake in Kara Sea and Black Sea prospects, as well as a 49% interest in a pilot program to test the potential of rock buried beneath Siberia's tundra.

Rosneft acquired a 30% stake in some of Exxon's properties in the Gulf of Mexico's deep waters. The two companies are planning to build a plant to export natural gas from Russia's Far East.

"Exxon cannot afford to miss out," said Fadel Gheit, a senior energy analyst at Oppenheimer & Co. "If Obama and European leaders decide, 'We're going to close the door on Putin until he screams uncle,' things could get very bad."

Credit: Daniel Gilbert

Subject: Oil reserves; Natural gas reserves; Petroleum industry; Financial performance

Location: Arctic region Russia United States--US Kara Sea

People: Tillerson, Rex W Putin, Vladimir

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: OAO Rosneft; NAICS: 324110; Name: XTO Energy Inc; NAICS: 211111; Name: Brookings Institution; NAICS: 541711, 541720; Name: Hess Corp; NAICS: 447110, 324110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: May 1, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1520140671

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1520140671?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Corporate News: Exxon Mobil Sticks With Russia

Author: Gilbert, Daniel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]02 May 2014: B.2.

ProQuest document link

Abstract:

Exxon Mobil Corp. is pushing ahead with plans to drill in Russia's Arctic seas -- its biggest opportunity to discover untapped deposits of oil and gas -- even though deteriorating relations between Moscow and Washington have increased the risks.

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Exxon Mobil Corp. is pushing ahead with plans to drill in Russia's Arctic seas -- its biggest opportunity to discover untapped deposits of oil and gas -- even though deteriorating relations between Moscow and Washington have increased the risks.

America's biggest energy producer is set this summer to tap what it calls the University Prospect in the Arctic's Kara Sea, a trove that could hold the equivalent of 9 billion barrels of oil -- more than a third of Exxon's proven reserves.

That prize looks riskier as tensions increase between the West and Moscow over Russia's incursion in Ukraine. U.S. sanctions this week targeted Igor Sechin, a close associate of President Vladimir Putin and head of OAO Rosneft, Exxon's Kremlin-controlled partner in the Arctic. The sanctions didn't extend to Rosneft itself.

"All of the activities that we had originally planned for this year are under way," David Rosenthal, Exxon's vice president of investor relations, said Thursday of Exxon's plans with Rosneft. Exxon will comply with all sanctions, he said.

Exxon has little choice but to stick with Russia, experts say. The company's first-quarter production fell 5.6% from a year earlier, the latest in a series of declines over the last decade. And it has to replace the fuels it pumps every year.

By Rosneft's estimates, a quarter of the world's remaining oil-and-gas reserves lie buried beneath Russian-controlled soil. That makes the country hard to ignore, especially as governments of other oil-rich countries favor their state-controlled energy companies.

Exxon executives "take the long-term view that hopefully they can weather the near-term storm," said Charles Ebinger, director of the Energy Security Initiative at the Brookings Institution. Exxon and rivals such as BP PLC and Royal Dutch Shell PLC "don't have a lot of choice. They've been denied access to a lot of the promising acreage in the world," he said.

The Irving, Texas, company's most profitable barrels lie outside of the U.S., partly because Exxon hasn't fared well in the U.S. energy boom. It jumped into the U.S. shale frenzy with a $25 billion acquisition of XTO Energy Inc. in 2010, just before natural-gas prices tumbled.

Exxon Chief Executive Rex Tillerson has pledged to improve the company's profit margins. Last year, the company sold some of its stake in an Iraqi project, allowed a less-profitable concession in Abu Dhabi to lapse and continued to reduce spending on gas drilling in North America.

That pruning, combined with a focus on adding more crude from places such as Canada's oil sands, is beginning to pay off. Despite lower output, Exxon's profit from tapping oil and gas jumped 11% in the first quarter from a year earlier. The results were helped by higher natural-gas prices and a steep drop in capital spending to $8.4 billion, the lowest in three years.

The company's first-quarter profit fell 4.2% to $9.1 billion, hurt by weak refining margins.

Exxon's shares fell $1 to close at $101.41 Thursday. But from the first round of U.S. sanctions more than a month ago through Wednesday, Exxon's shares had climbed 8.6%, far outpacing the broader market and adding $34 billion to the company's value.

The rise partly reflects that Exxon faces little risk in the short-term. Russia accounted for about 1% of the company's output last year, and Exxon has yet to invest the years and billions of dollars it would take to unearth the Arctic's energy riches.

The areas of the Kara Sea where Exxon and Rosneft are exploring could hold billions of barrels of oil, the companies have said. It could be decades before the partners can coax meaningful amounts of crude from beneath the frozen sea, which is icebound for most of the year.

Credit: By Daniel Gilbert

Subject: Petroleum industry; Financial performance; International relations-US; Offshore oil exploration & development

Location: Russia United States--US Kara Sea Arctic region

Company / organization: Name: OAO Rosneft; NAICS: 324110; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 8510: Petroleum industry; 9180: International

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.2

Publication year: 2014

Publication date: May 2, 2014

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999 660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1520303160

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1520303160?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon Unit in Canada Seeks Deep Arctic Well; Offshore Plan Increases Some Environmentalists' Concerns

Author: Dawson, Chester

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 May 2014: n/a.

ProQuest document link

Abstract:

Imperial, Exxon Mobil and partner BP PLC obtained leases for the right to drill in 2007 and 2008 and the three companies have since combined their Beaufort programs into an Imperial-led joint venture called Imperial Oil Resources Ventures Ltd. BP spent a record 1.2 billion Canadian dollars (US$1.1 billion) for its claim to a 500-acre parcel in the Beaufort Sea known as EL449.

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CALGARY--Exxon Mobil Corp.'s Canadian subsidiary is considering plans for what would be the deepest offshore well ever drilled in the Arctic, increasing some environmentalists' concerns about how the company would respond to a blowout.

Imperial Oil Ltd. submitted a project description last September to Canadian regulators for a proposed exploratory well so deep that it would likely take two to four years to complete. The well could extend about 6 miles beneath the floor of the Beaufort Sea, according to a study commissioned by the Pew Charitable Trusts, an environmental watchdog.

Imperial's filing didn't specify a well depth, but the unpublished Pew study, prepared by a third-party engineering consultant, calculated it as roughly 34,000 feet.

"These wells may be drilled over 6 miles deep, and will need complex well casing, cementing and drilling plans to address the technical challenges of drilling deep high pressure wells," the report said.

A spokesman for Imperial said Friday that drilling depths would vary and wouldn't be spelled out until a formal application is made, but that "geological targets" would likely be at a maximum depth of 24,606 feet, or about 4.7 miles.

The leases where the proposed well would be drilled are in the Canadian Arctic, about 110 miles off the coast of the Northwest Territories town of Tuktoyaktuk. Imperial, Exxon Mobil and partner BP PLC obtained leases for the right to drill in 2007 and 2008 and the three companies have since combined their Beaufort programs into an Imperial-led joint venture called Imperial Oil Resources Ventures Ltd.

BP spent a record 1.2 billion Canadian dollars (US$1.1 billion) for its claim to a 500-acre parcel in the Beaufort Sea known as EL449. Oil companies are attracted by the prospect of a significant find in Arctic waters, beneath which the U.S. Geological Survey estimates some 72 billion barrels of oil lie undisturbed.

Imperial's interest has raised environmentalists' concerns because the company has said it cannot meet a longstanding requirement to stop an accidental blowout within the short Arctic summer drilling season by drilling a so-called relief well. It petitioned Canada's National Energy Board last month to clarify whether it is willing to pre-emptively grant a policy exception.

"It's the first time there's been a plan to drill in the Beaufort Sea where a proponent has said it can't meet the same-season relief-well requirement," said Louie Porta, science and policy adviser for Oceans North Canada, an affiliate of the Pew Charitable Trusts. "That's going to directly test Canada's policy and legislative framework."

After the disastrous 2010 Deepwater Horizon blowout and spill in the Gulf of Mexico, Canada updated its Arctic drilling policy by reaffirming its commitment to requiring two rigs on site, including a backup capable of drilling a separate emergency relief well to cut off the flow of oil in case of an accident.

However, the National Energy Board, Canada's main energy regulator, left a potential escape clause by allowing exceptions in cases where operators can "meet or exceed" a same-season relief well's ability to stop a spill. A typical High Arctic drilling season lasts only about 120 days in a narrow window no earlier than May and no later than November.

In its project description, Imperial said it supports "faster options" for bringing a well that suffers a blowout under control, but it didn't specify what those are or how they meet or surpass the same-season relief-well requirement.

"Imperial would provide the specific details of its equivalency approach to the NEB in the third quarter of 2014," spokesman Pius Rolheiser said in an e-mailed statement. He said that an application to drill could follow in 2015.

NEB officials say workarounds can only be granted on a case-by-case basis and that applicants must first convince regulators they can meet the policy with alternate approaches. "Drilling will not occur unless the NEB can confirm it's safe. I don't think anybody is looking for shortcuts," said Robert Steedman, the NEB's Arctic Review project manager.

If requested and ultimately approved, Imperial and its partners hope to drill an exploratory well in the summer of 2020, which would be the first offshore drilling in Canada's Arctic waters since 2005.

The Beaufort drilling project spearheaded by Imperial is likely to take three summer drilling seasons to complete, according to Jed Hamilton, Exxon Mobil's senior Arctic consultant. "[It] could be the most expensive well ever drilled," he said in a 2012 speech in Washington.

The deepest vertical offshore wells ever drilled were in the Gulf of Mexico at depths of 35,950 feet from the surface, IHS Inc. says, and the deepest offshore Arctic drilling so far was an 18,373-foot well in the Norwegian part of the Barents Sea.

Credit: Chester Dawson

Subject: Petroleum industry; Charitable trusts; Energy policy; Drilling

Location: Arctic region Canada Beaufort Sea

Company / organization: Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Pew Charitable Trusts; NAICS: 523991

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: May 18, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1525632757

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1525632757?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Corporate News: Exxon Unit In Canada Seeks Deep Arctic Well

Author: Dawson, Chester

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]19 May 2014: B.3.

ProQuest document link

Abstract:

Imperial, Exxon Mobil and partner BP PLC obtained leases for the right to drill in 2007 and 2008 and the three companies have since combined their Beaufort programs into an Imperial-led joint venture called Imperial Oil Resources Ventures Ltd. BP spent a record 1.2 billion Canadian dollars (US$1.1 billion) for its claim to a 500-acre parcel in the Beaufort Sea known as EL449.

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Full text:  

CALGARY -- Exxon Mobil Corp.'s Canadian subsidiary is considering plans for what would be the deepest offshore well ever drilled in the Arctic, increasing some environmentalists' concerns about how the company would respond to a blowout.

Imperial Oil Ltd. submitted a project description last September to Canadian regulators for a proposed exploratory well so deep that it would likely take two to four years to complete. The well could extend about 6 miles beneath the floor of the Beaufort Sea, according to a study commissioned by the Pew Charitable Trusts, an environmental watchdog.

Imperial's filing didn't specify a well depth, but the unpublished Pew study, prepared by a third-party engineering consultant, calculated it as roughly 34,000 feet.

"These wells may be drilled over 6 miles deep, and will need complex well casing, cementing and drilling plans to address the technical challenges of drilling deep high pressure wells," the report said.

A spokesman for Imperial said Friday that drilling depths would vary and wouldn't be spelled out until a formal application is made, but that "geological targets" would likely be at a maximum depth of 24,606 feet, or about 4.7 miles.

The leases where the proposed well would be drilled are in the Canadian Arctic, about 110 miles off the coast of the Northwest Territories town of Tuktoyaktuk. Imperial, Exxon Mobil and partner BP PLC obtained leases for the right to drill in 2007 and 2008 and the three companies have since combined their Beaufort programs into an Imperial-led joint venture called Imperial Oil Resources Ventures Ltd.

BP spent a record 1.2 billion Canadian dollars (US$1.1 billion) for its claim to a 500-acre parcel in the Beaufort Sea known as EL449. Oil companies are attracted by the prospect of a significant find in Arctic waters, beneath which the U.S. Geological Survey estimates some 72 billion barrels of oil lie undisturbed.

Imperial's interest has raised environmentalists' concerns because the company has said it cannot meet a longstanding requirement to stop an accidental blowout within the short Arctic summer drilling season by drilling a so-called relief well. It petitioned Canada's National Energy Board last month to clarify whether it is willing to pre-emptively grant a policy exception.

"It's the first time there's been a plan to drill in the Beaufort Sea where a proponent has said it can't meet the same-season relief-well requirement," said Louie Porta, science and policy adviser for Oceans North Canada, an affiliate of the Pew Charitable Trusts. "That's going to directly test Canada's policy and legislative framework."

After the disastrous 2010 Deepwater Horizon blowout and spill in the Gulf of Mexico, Canada updated its Arctic drilling policy by reaffirming its commitment to requiring two rigs on site, including a backup capable of drilling a separate emergency relief well to cut off the flow of oil in case of an accident.

However, the National Energy Board, Canada's main energy regulator, left a potential escape clause by allowing exceptions in cases where operators can "meet or exceed" a same-season relief well's ability to stop a spill. A typical High Arctic drilling season lasts only about 120 days in a narrow window no earlier than May and no later than November.

In its project description, Imperial said it supports "faster options" for bringing a well that suffers a blowout under control, but it didn't specify what those are or how they meet or surpass the same-season relief-well requirement.

"Imperial would provide the specific details of its equivalency approach to the NEB in the third quarter of 2014," spokesman Pius Rolheiser said in an e-mail. He said that an application to drill could follow in 2015.

NEB officials say workarounds can only be granted on a case-by-case basis and that applicants must first convince regulators they can meet the policy with alternate approaches. "Drilling will not occur unless the NEB can confirm it's safe," said Robert Steedman, the NEB's Arctic Review project manager.

If requested and ultimately approved, Imperial and its partners hope to drill an exploratory well in the summer of 2020, which would be the first offshore drilling in Canada's Arctic waters since 2005.

Credit: By Chester Dawson

Subject: Petroleum industry; Energy policy; Offshore drilling; Deepwater drilling; Studies; Offshore oil wells; Oil spills

Location: Arctic region Canada Beaufort Sea

Company / organization: Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Pew Charitable Trusts; NAICS: 523991; Name: Imperial Oil Ltd; NAICS: 211111

Classification: 1530: Natural resources; 8510: Petroleum industry; 9172: Canada

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2014

Publication date: May 19, 2014

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1525743647

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1525743647?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon Mobil in Argentina Oil Find; Makes First Discovery From Unconventional Oil and Gas Play in Vaca Muerta Shale Formation

Author: Turner, Taos

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 May 2014: n/a.

ProQuest document link

Abstract: None available.

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BUENOS AIRES--Exxon Mobil Corp. has made its first discovery from an unconventional oil and gas play in Argentina's sprawling Vaca Muerta shale formation in the energy-rich province of Neuquén.

Vaca Muerta, which translates to "dead cow" in English, has attracted global attention after Chevron Corp. and Argentina's state-run oil company YPF SA agreed to a $1.5 billion joint venture to develop shale oil and gas deposits in the formation.

Exxon Mobil is testing the well to evaluate the discovery, but initial results produced an average flow rate of 770 barrels of oil a day, the company said late on Tuesday.

"Not all shales are alike, so our first ExxonMobil-operated discovery in the Vaca Muerta play is a very positive sign that the shale in this area of Neuquén Province holds great promise," Exxon Mobil Exploration President Stephen M. Greenlee said.

Exxon Mobil operates the well in partnership with the provincial government´s energy company Gas y Petroleo del Neuquén, which has a 15% working interest in the project.

Exxon Mobil's Argentine subsidiary holds stakes in about 900,000 acres of unconventional shale oil and gas plays in Vaca Muerta.

Argentina ranks second in the world, behind China, in potentially recoverable shale-gas reserves, with 802 trillion cubic feet, according to a study last month by the U.S. Energy Information Administration. Argentina also ranks fourth in terms of shale-oil reserves, with an estimated 27 billion barrels.

Credit: Taos Turner

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: May 21, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1526253202

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1526253202?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon Ships First LNG Cargo from Papua New Guinea; Delivery is First From Several LNG Terminals

Author: Ross, Kelly

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 May 2014: n/a.

ProQuest document link

Abstract:

Oil and gas production at the company has fallen every year since the 2010 acquisition of natural-gas producer XTO Energy Inc. "Our demonstrated expertise will enable us to progress other LNG opportunities in our portfolio, including expansion opportunities in Papua New Guinea, and to meet growing global demand," Neil W. Duffin, president of Exxon Mobil Development Co., said in a prepared statement on Monday.

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SYDNEY--Papua New Guinea became the world's newest energy exporter, after a facility operated by Exxon Mobil Corp. began shipping liquefied natural gas.

The delivery from the US$19 billion PNG LNG project was the first from several new LNG terminals in the small southeast Asian island nation and Australia. The plants are expected to start up over the next three years and will mark a shift in the global LNG trade away from the Middle East.

Work began on the PNG LNG project in 2010, when Asian gas users were looking to increase imports of fuels that burn more cleanly than coal, and international energy companies were struggling to gain access to resources not owned by foreign governments. The industry's landscape has changed dramatically since then; North American companies now are looking to export shale gas, and China in recent days signed a US$400 billion deal to buy gas from Russia.

The changes threaten to make the market more competitive and drive prices down for producers. But for Papua New Guinea, the start of gas shipments around three months ahead of Exxon's schedule heralds a much-needed injection of cash into its economy. By some estimates, the PNG LNG project could more than double the country's gross domestic product.

Exxon, based in Irving, Texas, said the PNG LNG project would produce more than 9 trillion cubic feet of gas over 30 years, starting with the maiden shipment to Japan's Tokyo Electric Power Co. Exxon is in talks with partners including Australia's Oil Search Ltd. about expanding the plant.

"It's great for Papua New Guinea," said Jenny Haward-Jones, an expert on the country at the Lowy Institute, a Sydney-based think tank. "It sends an important signal to the international resources community that things can get done here."

Still, it was unclear whether the country would be able to avoid the so-called resource curse of many developing nations that receive a sudden influx of cash. "The big problem is whether the country uses the revenue from PNG LNG to improve living standards here and equally distribute the benefits," Ms. Hayward-Jones said. "It seems to be going well, but you wouldn't want to predict everything will be completely rosy."

Early completion of the project is a boon for Exxon, which is under pressure to find new sources of revenue to boost sagging earnings. Oil and gas production at the company has fallen every year since the 2010 acquisition of natural-gas producer XTO Energy Inc.

"Our demonstrated expertise will enable us to progress other LNG opportunities in our portfolio, including expansion opportunities in Papua New Guinea, and to meet growing global demand," Neil W. Duffin, president of Exxon Mobil Development Co., said in a prepared statement on Monday.

PNG LNG still faces risks, including potential disputes between landowners over the distribution of royalties and environmental damage and harsh operating conditions in a country that is prone to heavy rains and earthquakes.

The project's gas is in remote parts of the country's mountainous highlands and has to be transported to the coast by a 190-mile, 32-inch pipeline that crosses rugged terrain up to 650 feet above sea level. From the shore, it is transported by a 250-mile subsea pipeline to a gas-processing terminal before being shipped to customers in Asia, including Taiwan's CPC Corp., Japan's Tepco and Osaka Gas Co. and China Petroleum and Chemical Corp.

The project's infrastructure crosses land occupied by local tribes that speak dozens of different languages and often are at war. The Panguna copper mine on the Papua New Guinean island of Bougainville was shut down in 1989 after local residents attacked the mine and its staff amid claims of environmental pollution and unfair distribution of government proceeds.

Papua New Guinea's prime minister, Peter O'Neill, said Monday that PNG LNG would benefit the country for generations.

Exxon and Australian partner Oil Search are looking to expand its annual production capacity beyond 6.9 million metric tons of LNG. Among their options are a large gas resource at P'nyang, which also is located in the country's highlands, and exploration prospects near fields that already supply the PNG LNG plant. Oil Search also is involved in a joint venture that includes InterOil Corp. and Total SA that is planning to build the Papua New Guinea's second LNG plant by tapping two large gas discoveries in the country's south.

Corrections & Amplifications Exxon is based in Irving, Texas. An earlier version of this article incorrectly said it was based in Houston.

Credit: Ross Kelly

Subject: LNG; Energy policy; Petroleum industry; Shipping industry; Natural gas utilities

Location: Japan Australia United States--US Middle East Papua New Guinea

Company / organization: Name: Oil Search Ltd; NAICS: 213111; Name: XTO Energy Inc; NAICS: 211111; Name: Tokyo Electric Power Co; NAICS: 221121, 221122; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: May 26, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1528328783

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1528328783?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Despite Ukraine, Exxon's Tillerson to Appear With Rosneft's Sechin; Oil Chiefs Are Scheduled for World Petroleum Congress as Moscow Is Accused of Moving Tanks Across Border

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 June 2014: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp.'s chief executive is set to speak at an energy summit in Moscow on Monday, even though the U.S. government has discouraged American attendance as it tries to isolate the Kremlin over its actions in Ukraine.

CEO Rex Tillerson's scheduled address at the World Petroleum Congress, a major industry event held every three years, will be just months ahead of Exxon's plan to drill its first well in Russia's Arctic waters, with state-controlled OAO Rosneft.

He is appearing with the head of Rosneft, Igor Sechin, a longtime associate of Russian President Vladimir Putin. The U.S. Treasury sanctioned Mr. Sechin and others in April. The order bars U.S. citizens from doing business with him, but not Rosneft, and doesn't prohibit appearances with the Russian executive.

Exxon's alliance with Russia's largest oil producer represents one of the Irving, Texas, company's most promising chances to discover new petroleum reserves. But Exxon must chart a tricky course to stay in the good graces of both the Kremlin and the White House as tensions between the governments mount.

Ukrainian officials last week accused Moscow of moving tanks into the country to support pro-Russian separatists. U.S. and other countries backed up the claim, raising the possibility of further sanctions. Ukrainian President Petro Poroshenko said Saturday in a phone call with his French counterpart that the European Union should apply tougher sanctions if Moscow doesn't stop destabilizing Ukraine.

Russia has denied arming separatists.

The U.S. said it wasn't sending government officials to the World Petroleum Congress in Russia and discouraged senior U.S. executives from attending.

"We do not believe it is appropriate to return to 'business as usual' in Russia," Laura Lucas Magnuson, a spokeswoman for the U.S. National Security Council, said by email.

Exxon said only that Mr. Tillerson had attended the last four World Petroleum Congress conferences.

Rosneft confirmed that Mr. Sechin would appear with Mr. Tillersonon a panel , but declined further comment.

Exxon in 2011 beat out BP PLC and other competitors for the plum Arctic deal with Rosneft. The U.S. and Russian companies also plan to drill in shale formations in Siberia and to build a liquefied natural-gas plant in eastern Russia. Rosneft has acquired stakes in some of Exxon's oil-and-gas properties in the Gulf of Mexico.

Exxon hasn't veered from its plans to drill in the Russian Arctic's Kara Sea, beginning this August. The first target, the University Prospect, could hold the energy equivalent of billions of barrels of oil. The initial drilling alone is forecast to cost more than $3.2 billion, and it is likely to take years before the companies can coax meaningful amounts of crude from the Arctic.

Mr. Tillerson generally is opposed to sanctions, and Exxon has made its views known to the highest levels of U.S. government, he told reporters at the company's annual meeting recently. But last month he skipped the St. Petersburg International Economics Forum, a Russia-sponsored gathering where he was awarded the "order of friendship" by Mr. Putin last year.

The World Petroleum Congress, by contrast, is run by an independent organization and is held in a member country.

Mr. Tillerson's appearance at the summit "is an example of public diplomacy that's at cross-purposes with what the Obama administration would like to see," said Jim Krane, a fellow at Rice University's Baker Institute for Public Policy. But the company "can't pack its bags," he said, citing Exxon's considerable investment in Russia.

Exxon's engagement with the Kremlin could ultimately help accomplish U.S. goals of halting Russian aggression in Ukraine, some analysts said. Exxon is using its cash and engineering muscle to unearth new oil deposits, which would benefit the Russian government. More sanctions could prevent Exxon from investing in Russia and delay the Arctic drilling.

"I don't see that Rex Tillerson's actions are out of line with U.S. foreign policy," said Amy Myers Jaffe, executive director of energy and sustainability at the University of California, Davis. "Having important corporate leaders keep a dialogue open with the Russian leaders could be helpful."

Messrs. Tillerson and Sechin had high hopes when they announced their companies' pact. "It cannot be anything but helpful to broadening the relationship between the American people and the Russian people," Mr. Tillerson told analysts at New York's St. Regis Hotel in 2012.

Alexander Kolyandr in Moscow contributed to this article.

Corrections & Amplifications The surname of Rice University's Jim Krane was misspelled as Crane in an earlier version of this article.

Credit: Daniel Gilbert

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Jun 15, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1535571895

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1535571895?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-20

Database: The Wall Street Journal

Corporate News: Exxon to Appear in Moscow --- CEO Tillerson to Attend Conference With Sanctioned Rosneft Chief Sechin

Author: Gilbert, Daniel; Marson, James

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]16 June 2014: B.3.

ProQuest document link

Abstract:

Exxon Mobil Corp.'s chief executive is set to speak at an energy summit in Moscow on Monday, even though the U.S. government has discouraged American attendance as it tries to isolate the Kremlin over its actions in Ukraine.

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Exxon Mobil Corp.'s chief executive is set to speak at an energy summit in Moscow on Monday, even though the U.S. government has discouraged American attendance as it tries to isolate the Kremlin over its actions in Ukraine.

CEO Rex Tillerson's scheduled address at the World Petroleum Congress, a major industry event held every three years, will be just months ahead of Exxon's plan to drill its first well in Russia's Arctic waters, with state-controlled OAO Rosneft.

He is appearing with the head of Rosneft, Igor Sechin, a longtime associate of Russian President Vladimir Putin. The U.S. Treasury sanctioned Mr. Sechin and others in April. The order bars U.S. citizens from doing business with him, but not Rosneft, and doesn't prohibit appearances with the Russian executive.

Exxon's alliance with Russia's largest oil producer represents one of the Irving, Texas, company's most promising chances to discover new petroleum reserves. But Exxon must chart a tricky course to stay in the good graces of both the Kremlin and the White House as tensions between the governments mount.

Ukrainian officials last week accused Moscow of moving tanks into the country to support pro-Russian separatists. U.S. and other countries backed up the claim. Ukrainian President Petro Poroshenko said Saturday in a phone call with his French counterpart that the European Union should apply tougher sanctions if Moscow doesn't stop destabilizing Ukraine.

Russia has denied arming separatists.

The U.S. said it wasn't sending government officials to the World Petroleum Congress in Russia and discouraged senior U.S. executives from attending.

"We do not believe it is appropriate to return to 'business as usual' in Russia," Laura Lucas Magnuson, a spokeswoman for the U.S. National Security Council, said by email.

Exxon said only that Mr. Tillerson had attended the last four World Petroleum Congress conferences.

Rosneft confirmed that Mr. Sechin would appear with Mr. Tillersonon a panel , but declined further comment.

Exxon in 2011 beat out BP PLC and other competitors for the plum Arctic deal with Rosneft. The U.S. and Russian companies also plan to drill in shale formations in Siberia and to build a liquefied natural-gas plant in eastern Russia. Rosneft has acquired stakes in some of Exxon's oil-and-gas properties in the Gulf of Mexico.

Exxon hasn't veered from its plans to drill in the Russian Arctic's Kara Sea, beginning this August. The first target, the University Prospect, could hold the energy equivalent of billions of barrels of oil. The initial drilling alone is forecast to cost more than $3.2 billion, and it is likely to take years before the companies can coax meaningful amounts of crude from the Arctic.

Mr. Tillerson generally is opposed to sanctions, and Exxon has made its views known to the highest levels of U.S. government, he told reporters at the company's annual meeting recently. But last month he skipped the St. Petersburg International Economics Forum, a Russia-sponsored gathering where he was awarded the "order of friendship" by Mr. Putin last year.

The World Petroleum Congress, by contrast, is run by an independent organization and is held in a member country.

Exxon's engagement with the Kremlin could ultimately help accomplish U.S. goals of halting Russian aggression in Ukraine, some analysts said. Exxon is using its cash and engineering muscle to unearth new oil deposits, which would benefit the Russian government. More sanctions could prevent Exxon from investing in Russia and delay the Arctic drilling.

---

Alexander Kolyandr in Moscow contributed to this article.

Credit: Daniel Gilbert, James Marson

Subject: Energy industry; Sanctions; Summit conferences

Location: Russia

People: Sechin, Igor Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 9179: Asia & the Pacific; 8510: Petroleum industry

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2014

Publication date: Jun 16, 2014

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1535647290

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Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Despite Ukraine, Exxon's Tillerson to Appear With Rosneft's Sechin; Oil Chiefs Are Scheduled for World Petroleum Congress as Moscow Is Accused of Moving Tanks Across Border

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 June 2014: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp.'s chief executive is set to speak at an energy summit in Moscow on Monday, even though the U.S. government has discouraged American attendance as it tries to isolate the Kremlin over its actions in Ukraine.

CEO Rex Tillerson's scheduled address at the World Petroleum Congress, a major industry event held every three years, will be just months ahead of Exxon's plan to drill its first well in Russia's Arctic waters, with state-controlled OAO Rosneft.

He is appearing with the head of Rosneft, Igor Sechin, a longtime associate of Russian President Vladimir Putin. The U.S. Treasury sanctioned Mr. Sechin and others in April. The order bars U.S. citizens from doing business with him, but not Rosneft, and doesn't prohibit appearances with the Russian executive.

Exxon's alliance with Russia's largest oil producer represents one of the Irving, Texas, company's most promising chances to discover new petroleum reserves. But Exxon must chart a tricky course to stay in the good graces of both the Kremlin and the White House as tensions between the governments mount.

Ukrainian officials last week accused Moscow of moving tanks into the country to support pro-Russian separatists. U.S. and other countries backed up the claim, raising the possibility of further sanctions. Ukrainian President Petro Poroshenko said Saturday in a phone call with his French counterpart that the European Union should apply tougher sanctions if Moscow doesn't stop destabilizing Ukraine.

Russia has denied arming separatists.

The U.S. said it wasn't sending government officials to the World Petroleum Congress in Russia and discouraged senior U.S. executives from attending.

"We do not believe it is appropriate to return to 'business as usual' in Russia," Laura Lucas Magnuson, a spokeswoman for the U.S. National Security Council, said by email.

Exxon said only that Mr. Tillerson had attended the last four World Petroleum Congress conferences.

Rosneft confirmed that Mr. Sechin would appear with Mr. Tillersonon a panel , but declined further comment.

Exxon in 2011 beat out BP PLC and other competitors for the plum Arctic deal with Rosneft. The U.S. and Russian companies also plan to drill in shale formations in Siberia and to build a liquefied natural-gas plant in eastern Russia. Rosneft has acquired stakes in some of Exxon's oil-and-gas properties in the Gulf of Mexico.

Exxon hasn't veered from its plans to drill in the Russian Arctic's Kara Sea, beginning this August. The first target, the University Prospect, could hold the energy equivalent of billions of barrels of oil. The initial drilling alone is forecast to cost more than $3.2 billion, and it is likely to take years before the companies can coax meaningful amounts of crude from the Arctic.

Mr. Tillerson generally is opposed to sanctions, and Exxon has made its views known to the highest levels of U.S. government, he told reporters at the company's annual meeting recently. But last month he skipped the St. Petersburg International Economics Forum, a Russia-sponsored gathering where he was awarded the "order of friendship" by Mr. Putin last year.

The World Petroleum Congress, by contrast, is run by an independent organization and is held in a member country.

Mr. Tillerson's appearance at the summit "is an example of public diplomacy that's at cross-purposes with what the Obama administration would like to see," said Jim Krane, a fellow at Rice University's Baker Institute for Public Policy. But the company "can't pack its bags," he said, citing Exxon's considerable investment in Russia.

Exxon's engagement with the Kremlin could ultimately help accomplish U.S. goals of halting Russian aggression in Ukraine, some analysts said. Exxon is using its cash and engineering muscle to unearth new oil deposits, which would benefit the Russian government. More sanctions could prevent Exxon from investing in Russia and delay the Arctic drilling.

"I don't see that Rex Tillerson's actions are out of line with U.S. foreign policy," said Amy Myers Jaffe, executive director of energy and sustainability at the University of California, Davis. "Having important corporate leaders keep a dialogue open with the Russian leaders could be helpful."

Messrs. Tillerson and Sechin had high hopes when they announced their companies' pact. "It cannot be anything but helpful to broadening the relationship between the American people and the Russian people," Mr. Tillerson told analysts at New York's St. Regis Hotel in 2012.

Alexander Kolyandr in Moscow contributed to this article.

Corrections & Amplifications The surname of Rice University's Jim Krane was incorrectly spelled Crane in an earlier version of this article.

Credit: Daniel Gilbert

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Jun 16, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1535698034

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1535698034?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon Mobil to Plow $1 Billion Into Belgian Refinery; Move Comes Despite Tough Conditions in Europe's Refining Industry

Author: Williams, Selina; Stiff, Peter

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 July 2014: n/a.

ProQuest document link

Abstract:

The sector is facing increased competition from new refineries in Asia and the Middle East, which have lower operating costs, and U.S. plants that benefit from cheap energy provided by the boom in shale oil and gas. Since 2008, some 15 European refineries have closed, representing 8% of the continent's capacity, while others are running at reduced capacity.

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Exxon Mobil Corp. is to invest more than $1 billion at a refinery in Belgium to meet diesel demand, despite the challenging industry environment that has shuttered other facilities in Europe.

The U.S. energy company said the money would be spent on installing a new delayed coker unit at a plant in Antwerp, which will convert heavy, high-sulfur residual oils into products such as marine gas oil and diesel fuel.

Exxon said it is making the investment to meet demand for transport fuels in northwest Europe. The company added that it was evaluating several other investments in the region.

Exxon's investment comes as refineries across Europe are closing down as weak demand and high oil prices have slashed profits in the once-flourishing industry.

The sector is facing increased competition from new refineries in Asia and the Middle East, which have lower operating costs, and U.S. plants that benefit from cheap energy provided by the boom in shale oil and gas.

Since 2008, some 15 European refineries have closed, representing 8% of the continent's capacity, while others are running at reduced capacity.

But Exxon said its annual Energy Outlook forecasts that Europe's demand for diesel fuel will remain high in the coming decades for trucking and other commercial transportation.

"Our investments at this refinery, totaling more than $2 billion in less than a decade, will contribute to meeting the demand for fuels and finished products from our customers in Europe," said Jerry Wascom, incoming president of Exxon Mobil Refining & Supply Co.

The Antwerp refinery has a production capacity of about 320,000 barrels a day and has been in operation since 1953.

Credit: By Selina Williams and Peter Stiff

Subject: Petroleum refineries; Supply & demand; Petroleum industry; Diesel fuels; Production capacity

Location: United States--US Belgium Asia Europe Middle East

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Jul 2, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1541964496

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1541964496?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon Says It Is Getting Singled Out Over Fracking; Company Says Pennsylvania May Be Using Case Against Its Unit to Stop Fracking in the State

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 July 2014: n/a.

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Abstract:

Exxon Mobil Corp. is fighting criminal charges over a wastewater spill in Pennsylvania with an unusual defense, contending that the state's attorney general has improperly singled it out in a bid to stop fracking.

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Exxon Mobil Corp. is fighting criminal charges over a wastewater spill in Pennsylvania with an unusual defense, contending that the state's attorney general has improperly singled it out in a bid to stop fracking.

On Wednesday, Attorney General Kathleen Kane fired back with a legal response, calling the company's claims "nothing more than weak attempts to obfuscate the truth." Prosecutors say an Exxon subsidiary, XTO Energy Inc., is criminally liable for a big leak of water that had been used in hydraulic fracturing, or fracking, in north-central Pennsylvania in 2010.

The case involves the first criminal charges filed against a public company drilling in Pennsylvania's Marcellus Shale. XTO is trying to stem damage to its reputation from the misdemeanor charges, while Ms. Kane, a Democrat, is defending against the company's allegations that her office abused its power to mount an antifracking crusade.

A spokeswoman for the attorney general said that the state has convicted more than 800 individuals and companies of environmental crimes. "No single industry has been targeted," said the spokeswoman, Carolyn E. Myers.

XTO declined to comment.

The criminal case is over 57,000 gallons of wastewater that leaked from storage tanks on an XTO site, seeping into a tributary of the Susquehanna River. The wastewater came from wells that XTO had hydraulically fractured, a process that frees natural gas from the dense Marcellus rock. XTO had arranged for contractors to bring the residual liquid to the storage site so it could be treated and reused for other frack jobs.

On Nov. 16, 2010, a Pennsylvania inspector made an unannounced visit and discovered wastewater leaking from a partially open valve, according to pleadings in the Lycoming County Court of Common Pleas. That eventually set in motion investigations by both Pennsylvania authorities and the U.S. Environmental Protection Agency.

XTO argues it had turned over the site to contractors, didn't cause the spill and can't be held liable for it. The company also says that biologists from Pennsylvania's Department of Environmental Protection studied the tributary and found no impact from the spill.

Last July, XTO settled civil allegations it violated the federal Clean Water Act, agreeing to pay a $100,000 penalty and take steps to prevent spills, which the government said could cost $20 million.

Two months later, Pennsylvania prosecutors filed eight criminal misdemeanor charges against the company; each charge carries a maximum penalty of $25,000 a day.

Ms. Kane's office argues that XTO failed to install a system to contain spills around the storage tanks, and neglected to secure them. Cleanup required excavating more than 3,000 tons of contaminated soil, prosecutors say, adding that there is evidence of prior pollution from the site.

XTO says other companies have committed worse environmental offenses but haven't been prosecuted. It accuses prosecutors of hyping the case on social media and intentionally destroying an investigator's handwritten notes. And it cites a statement Ms. Kane made while campaigning for office in 2012 to stop fracking.

"The available evidence suggests that the Commonwealth's selection of XTO for corporate criminal prosecution may be part of an arbitrary and improper law enforcement agenda," the company's lawyers wrote last month, adding that the goal may be "to end hydro-fracturing in Pennsylvania altogether."

XTO is asking a judge to order prosecutors to turn over all documents related to the decision to bring charges, and to hold a hearing on the destruction of evidence.

In their response filed Wednesday, prosecutors acknowledge Ms. Kane has stated her opposition to fracking, but emphasized her comments that she would pursue companies that harm the environment. The state denies that it has singled XTO out for improper reasons, saying that some of the other pollution incidents the company cited didn't fall under state jurisdiction.

The attorney general denied hyping the case, adding that it is a common practice to post "positive, supportive and informative news articles" and pointing out that XTO has issued its own news releases and advertised its defense in newspapers. The destruction of the investigator's notes, prosecutors wrote, occurred only after the contents were incorporated into reports that the state provided to XTO.

Credit: By Daniel Gilbert

Subject: Attorneys general; Environmental protection; Environmental impact; Hydraulic fracturing

Company / organization: Name: Environmental Protection Agency--EPA; NAICS: 924110; Name: XTO Energy Inc; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Jul 10, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 15441989 06

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1544198906?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Corporate News: Exxon Fights in Pennsylvania

Author: Gilbert, Daniel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]11 July 2014: B.2.

ProQuest document link

Abstract:

Exxon Mobil Corp. is fighting criminal charges over a wastewater spill in Pennsylvania with an unusual defense, contending that the state's attorney general improperly singled the company out in an effort to stop hydraulic fracturing.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. is fighting criminal charges over a wastewater spill in Pennsylvania with an unusual defense, contending that the state's attorney general improperly singled the company out in an effort to stop hydraulic fracturing.

Attorney General Kathleen Kane fired back on Wednesday in a court filing that calls the company's claims "nothing more than weak attempts to obfuscate the truth." Prosecutors say Exxon subsidiary XTO Energy Inc. is criminally liable for a big leak of water that had been used in fracking in north-central Pennsylvania in 2010.

The case involves the first criminal charges filed against a public company drilling in Pennsylvania's Marcellus Shale.

A spokeswoman for the attorney general said the state has convicted more than 800 individuals and companies of environmental crimes. "No single industry has been targeted," said the spokeswoman, Carolyn E. Myers.

XTO declined to comment.

The case regards 57,000 gallons of wastewater that leaked from storage tanks on an XTO site, seeping into a tributary of the Susquehanna River. The wastewater came from wells that XTO had fracked, a process that frees natural gas from the dense Marcellus rock.

On Nov. 16, 2010, a Pennsylvania inspector made an unannounced visit and discovered wastewater leaking from a partially open valve, according to pleadings in the Lycoming County Court of Common Pleas.

XTO says it had turned over the site to contractors, didn't cause the spill and can't be held liable. Last July, XTO settled civil allegations that it violated the federal Clean Water Act, agreeing to pay a $100,000 penalty and take steps to prevent spills, which the government said could cost $20 million.

Two months later, Pennsylvania prosecutors filed eight criminal misdemeanor charges against the company. Ms. Kane's office says that XTO failed to install a system to contain spills around the storage tanks and neglected to secure them.

XTO accuses prosecutors of hyping the case on social media. And it cites a statement against fracking that Ms. Kane, a Democrat, made while campaigning for office in 2012.

"The available evidence suggests that the commonwealth's selection of XTO for corporate criminal prosecution may be part of an arbitrary and improper law-enforcement agenda," the company's lawyers wrote last month. The goal may be "to end hydro-fracturing in Pennsylvania altogether," according to XTO's motion.

XTO is asking a judge to order prosecutors to turn over all documents related to the decision to bring charges and to hold a hearing on the destruction of evidence. In their response Wednesday, prosecutors acknowledge that Ms. Kane has stated her opposition to fracking but emphasized comments she made saying that she would pursue companies that harm the environment. The state denies that it has singled XTO out for improper reasons, saying that some of the other pollution incidents the company cited didn't fall under state jurisdiction.

The attorney general denied hyping the case, saying that it is a common practice to post "positive, supportive and informative news articles."

Credit: By Daniel Gilbert

Subject: Hydraulic fracturing; Petroleum industry; Litigation; Water pollution

Location: Pennsylvania

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 8510: Petroleum industry; 4330: Litigation; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.2

Publication year: 2014

Publication date: Jul 11, 2014

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1544274025

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1544274025?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon Partner Is Confident About LNG Project in Papua New Guinea; Australia's Oil Search Says Expansion Is Probably Warranted

Author: Ross, Kelly

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 July 2014: n/a.

ProQuest document link

Abstract:

[...]expanding the project would bring more LNG into the market, potentially driving down prices for producers such as Exxon, Chevron Corp. and Royal Dutch Shell PLC. Supplies in Asia are already expected to rise substantially in the coming years as a result of the U.S. shale-gas boom.

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SYDNEY--A partner in Exxon Mobil Corp.'s Papua New Guinea natural-gas project said it is confident that enough new gas will be found in the country to justify a significant expansion of the project's processing facilities.

Exxon's biggest partner in the project, Australia's Oil Search Ltd., said sufficient natural gas probably exists in the country's highlands to warrant adding at least one refrigeration unit, known as a train, to chill natural gas into liquid so it can be exported to fast-growing markets in Asia.

Any major boost to the liquefied natural gas produced in Papua New Guinea promises to be a vital new source of profit for Exxon, which is attempting to arrest three years of falling production.

Expansion also would prove a windfall for Papua New Guinea's developing economy.

"By the end of the year, I think we'll have a pretty good idea as to the size and shape of the Hides field" in the highlands, said Oil Search Chief Executive Peter Botten.

A large increase in the amount of LNG pumped into Asia would make the gas market more competitive by creating a new source of supply for buyers in places such as Japan, South Korea and China.

The US$19 billion Papua New Guinea project began exporting chilled natural gas in May, putting the impoverished nation into the global energy market about three months ahead of schedule. The project's two existing trains are capable of producing 6.9 million metric tons of LNG a year, equivalent to about 8% of Japan's total LNG intake last year.

Exxon's oil and gas production has fallen since 2010 as the industry generally has struggled to find big deposits in countries that aren't hostile to foreign investment. The Papua New Guinea development is a key part of Exxon's efforts, along with exploration in Asia and projects in Canada and Russia, to improve performance.

The prospect of adding new refrigeration units to LNG projects is appealing to producers because costly infrastructure, such as pipelines, roads and storage tanks, has already been installed. Expanding processing is therefore a relatively inexpensive way to boost production.

Still, expanding the project would bring more LNG into the market, potentially driving down prices for producers such as Exxon, Chevron Corp. and Royal Dutch Shell PLC. Supplies in Asia are already expected to rise substantially in the coming years as a result of the U.S. shale-gas boom.

Papua New Guinea operators have an advantage over LNG developers in places such as Australia, where labor is more expensive. Buyers are also eager to diversify their supply sources to protect against the possible disruptions.

John Hirjee, an analyst at Deutsche Bank, estimated that Exxon's plant in Papua New Guinea will generate a return on investment of 19% over its life, potentially making the project one of the most lucrative in the Asian-Pacific region.

For Oil Search, which recently began exploring for oil in Iraqi Kurdistan, adding a third processing unit could be a quick way to increase earnings as investors question how it will maintain sharp gains in its stock price. The company's shares have almost doubled in price in the five years since construction on the LNG project began.

For Papua New Guinea's government, a decision to invest in new processing facilities would inject much-needed cash into the economy. Spending on the foundation stage of the project is already set to more than double the country's gross domestic product, according to some estimates.

Large investments in the country have led to quarreling between tribal landowners and lawmakers over how the proceeds should be divided.

Oil Search's Mr. Botten, a longtime resident of the country, said he was optimistic that rewards from the project would be distributed equitably. "The government has made the right moves in terms of setting up sovereign-wealth funds and various mechanisms for benefits distribution, but it's early days," he said. "Part of the solution is that the private sector works with government to help deliver services like health."

The country's high proportion of people with AIDS--as much as 0.7% of the nation's adult population, according to some estimates--is of particular concern.

Write to Ross Kelly at

Credit: By Ross Kelly

Subject: LNG; Natural gas; Petroleum industry; Investments; Economic growth; Gross Domestic Product--GDP

Location: Australia Japan United States--US Asia Papua New Guinea

Company / organization: Name: Hides; NAICS: 339115; Name: Chevron Corp; NAICS: 324110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Jul 14, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1544718251

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Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Energy Firms Caught in China-Vietnam Feud --- Chevron, Others End Projects Amid Disputes Over South China Sea Oil; Exxon Keeps Drilling

Author: Spegele, Brian; Dawson, Chester

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]17 July 2014: B.1.

ProQuest document link

Abstract:

Companies that have gotten caught up include Exxon Mobil Corp., Chevron Corp., ConocoPhillips Co., and BP PLC. In May, tensions flared anew when state-owned China National Offshore Oil Corp. sailed a billion-dollar oil rig into waters claimed by Vietnam, prompting a standoff between Chinese and Vietnamese government vessels. The size of China's energy market and the growing global clout of its oil companies give it some unique strength in dealings with international oil firms.

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Executives at Talisman Energy Inc. are excited about promising oil-and-gas prospects off the coast of Vietnam and the Canadian company is gearing up to drill two exploratory wells there this year.

"I would describe these as world-class exploration blocks," says Paul Ferneyhough, the Calgary, Alberta, company's vice president for Asia-Pacific operations. The U.S. calculates that the South China Sea likely holds nearly 11 billion barrels of oil and 190 trillion cubic feet of natural gas.

There is a problem: Proceeding with drilling could bring Talisman into conflict with China, which claims some of the blocks as its own. Talisman declined to comment on China's position. Mr. Ferneyhough accepts Vietnam's assurances that Talisman has the right to explore there.

For years, the drive to tap the South China Sea's potential riches has placed global oil companies in the center of a quarrel between China and Vietnam over which country owns the resources. Companies that have gotten caught up include Exxon Mobil Corp., Chevron Corp., ConocoPhillips Co., and BP PLC.

In May, tensions flared anew when state-owned China National Offshore Oil Corp. sailed a billion-dollar oil rig into waters claimed by Vietnam, prompting a standoff between Chinese and Vietnamese government vessels.

On Tuesday, China said it had completed drilling for now and was withdrawing the rig from the waters, in a potential easing of the standoff. But China's Foreign Ministry left the door open to future exploration there.

Neither Talisman nor U.S.-based Harvest Natural Resources Inc., which hold rights assigned by China to an area separately assigned by Vietnam, has started drilling in the flash point areas. Harvest Chief Executive James Edmiston told an industry conference in June that the company was in the process of exiting its China interests.

Some companies have been undeterred. Exxon in 2009 acquired the rights to explore more than 13 million acres off the coast of Vietnam, all within an area Vietnam considers its exclusive economic zone under a United Nations maritime convention. Some of that acreage, however, is contested by China.

Still, Exxon and its state-owned partner, PetroVietnam, drilled two successful wells in 2011 and 2012 in the South China Sea. Exxon said in March it expected to drill an additional well this year as it evaluates a multibillion-dollar natural-gas project in Vietnam. A company spokeswoman said disputes of sovereignty are for governments to resolve, and declined to comment on the status of its drilling plans there.

The standoff over which companies can drill and where represents a test of the Obama administration's ability to convince China to dial back recent confrontations with Vietnam and the Philippines without damaging wider U.S.-China ties. The U.S. also fears Chinese control over contested waters could one day impede the ability of its forces to operate there, say observers. Secretary of State John Kerry pressed Chinese officials on the issue during a visit to Beijing last week.

The U.S. has taken moderate steps to heighten pressure on Beijing in recent months over its sea disputes. Daniel Russel, assistant secretary of State for East Asian and Pacific Affairs, said in congressional testimony in February that China's claims over nearly the entire South China Sea had no apparent basis in international law.

China flatly rejects what it sees as U.S. meddling in its territorial disputes.

Senior U.S. diplomats have rarely made public reference to the challenges faced by U.S. companies in the South China Sea. A State Department official declined to offer details on how the U.S. and China have dealt with the matter, adding the U.S. supported expanding economic ties between the U.S. and Vietnam.

The size of China's energy market and the growing global clout of its oil companies give it some unique strength in dealings with international oil firms. For Vietnam, meanwhile, teaming up with international companies is crucial to tapping new reserves of harder-to-reach oil and gas.

"We want to tell the international community: Don't expect China to stop drilling after Vietnam's shouting," said Wu Shicun, president of China's National Institute for South China Sea Studies, referring to a recent flare-up over Cnooc's drilling rig in waters claimed by Vietnam. The company says it has every right to operate in the disputed waters.

PetroVietnam officials protested Cnooc's move. Nguyen Quoc Thap, deputy director at PetroVietnam, said last month that international oil companies have pledged to continue offshore work there.

Exxon and PetroVietnam executives last year met in Washington, D.C., and pledged to advance cooperation. Exxon's business exposure in China is more limited than some competitors. The company's interest includes a minority stake in a south China refinery and a gas exploration agreement with PetroChina Co. in northern China's Ordos Basin.

Murphy Oil Corp., which has no operations in China, similarly agreed to move ahead on exploration off Vietnam. A spokesman for the Arkansas-based company said it is seeking additional opportunities in Vietnam.

But other companies have been less willing to test Beijing's resolve. In, 2006, Chevron signed with Malaysia's state oil company Petroliam Nasional Bhd., or Petronas, to explore a block east of Vietnam. China warned Chevron executives its operations there violated Chinese sovereignty.

The Vietnamese offered its navy for protection, according to one diplomatic cable released by WikiLeaks, but Chevron suspended planned seismic work in the block in 2007, citing the China-Vietnam dispute as the reason in a U.S. regulatory filing. It no longer is pursuing work in that area.

Chevron now is pursuing drilling in Vietnam, but not in a disputed area. In June, Italian oil company Eni SpA signed a production-sharing contract with PetroVietnam to explore the area Chevron originally was pursuing.

Royal Dutch Shell PLC and PetroChina have agreements on exploring shale in Sichuan and on cooperation overseas. Shell also works with Cnooc. During a visit to the U.K. by Premier Li Keqiang in June, Shell and Cnooc signed what they called a "global strategic alliance" agreement.

---

Daniel Gilbert in Houston and Vu Trong Khanh in Hanoi contributed to this article.

Credit: By Brian Spegele and Chester Dawson

Subject: Petroleum industry; Offshore oil exploration & development; Territorial issues

Location: South China Sea China Vietnam

People: Ferneyhough, Paul

Company / organization: Name: Talisman Energy Inc; NAICS: 211111

Classification: 9179: Asia & the Pacific; 1210: Politics & political behavior; 8510: Petroleum industry

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2014

Publication date: Jul 17, 2014

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1545387551

Document URL: https://login.ezproxy.uta.edu/login? url=https://search-proquest-com.ezproxy.uta.edu/docview/1545387551?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon Mobil Starts to Sputter

Author: Jakab, Spencer

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 July 2014: n/a.

ProQuest document link

Abstract:

From 2009 through 2013, the company's return on invested capital--effectively its bang for the buck--has been far higher than at other integrated oil-and-gas companies. [...]despite glacial growth in absolute terms, its oil-and-gas output measured on a per-share basis has grown far more quickly than its rivals'.

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Investors could be forgiven for wondering if the tiger has left this tank.

It shouldn't be surprising that the return on Exxon Mobil Corp.'s shares, including dividends, has been about half that of the broad stock market since oil prices peaked in July 2008. Management can't control commodity markets, after all. More dismaying is that the stock has badly lagged behind domestic rivals over the same period.

Exxon's fans have answers to such criticism. For one, the company has been a careful steward of cash. From 2009 through 2013, the company's return on invested capital--effectively its bang for the buck--has been far higher than at other integrated oil-and-gas companies.

And despite glacial growth in absolute terms, its oil-and-gas output measured on a per-share basis has grown far more quickly than its rivals'. "Per share" is the caveat, because Exxon has been a furious buyer of its own stock to the tune of $84 billion over five years.

Shareholders tiring of Exxon's schtick will await more detail when it reports second-quarter results Thursday. At its annual meeting this spring, Exxon cut guidance for output without making a similar adjustment to capital-expenditure projections. That means less bang for future bucks. So, while an expected $1.88 in earnings per share for the quarter, compared with $1.55 a year ago, would be welcome, anxiety about future profitability has grown.

In fairness, Exxon earned its reputation for being a wise spender of shareholders' money over many years, both good and bad for the energy industry. Having the discipline to walk away from a marginal project or deal and leaving it to competitors mostly served shareholders well. But in recent years, Exxon arguably has been too cautious in some cases and foolhardy in others.

A prime example of the latter was the $31 billion purchase of XTO Energy in 2010, which added lots of natural-gas reserves in a still-glutted North American market. That deal buoyed otherwise faltering output.

Earnings? Not so much.

Meanwhile, analysts lament how Exxon has missed out on some of the world's hottest oil and gas patches and increasingly question its moderate valuation premium to peers.

Once seen as the smoothest-running machine in Big Oil, Exxon suddenly doesn't look so slick.

Credit: By Spencer Jakab

Subject: Earnings per share; Petroleum industry; Financial performance; Corporate profits; Natural gas utilities

Company / organization: Name: XTO Energy Inc; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Jul 30, 2014

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1549442888

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Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Cash-Poor Venezuela Weighs Sale of Citgo; Petroleos de Venezuela Also Considers a Sale of Its Stake in a Refinery Run With Exxon Mobil

Author: Minaya, Ezequiel; Sider, Alison; Cimilluca, Dana

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 July 2014: n/a.

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Abstract:

PdVSA, the principal source of hard currency in Venezuela, is seeking to bolster the country's stumbling economy, redirect more oil exports from the U.S. to its top creditor China and get some protection from the seizure of foreign assets as settlements in disputes before the World Bank draw near, analysts said.

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Venezuela, strapped for cash at home and staring down costly litigation overseas, is considering a deal for its U.S.-based refinery company Citgo Petroleum Corp. as well as a stake in a refinery run with Exxon Mobil Corp., according to a Citgo document and people familiar with the matter.

People close to Petroleos de Venezuela SA, or PdVSA, say the state-run oil giant is in the early stages of considering a deal for Houston-based Citgo, which operates three refineries. It is separately shopping its 50% stake in the Chalmette refinery in Louisiana, a process that is further advanced, they said.

A July 15 bond prospectus for Citgo states that PdVSA "is currently seeking to monetize its ownership interest in us."

A spokesman for PdVSA said he had no information on any potential asset sales. Exxon also declined to comment.

PdVSA, the principal source of hard currency in Venezuela, is seeking to bolster the country's stumbling economy, redirect more oil exports from the U.S. to its top creditor China and get some protection from the seizure of foreign assets as settlements in disputes before the World Bank draw near, analysts said.

But any potential deal might easily get snagged on issues like price, they warned. Venezuela has periodically mulled unloading Citgo over the years, but faced the same struggle it is confronted with now: the difficulty of finding a buyer and getting enough in return to justify the move.

Anthony Szabo, a former PdVSA executive who maintains ties with the investment community and among intermediaries who work with Venezuela's government, said that three offers by unknown prospective buyers had been made to PdVSA.

Some analysts estimate that the most PdVSA stands to make from a sale of Citgo is between $8 and $10 billion. Companies like Marathon Petroleum Corp. and Valero Energy Corp. would face antitrust headwinds, while the majors in Europe and the U.S. are hesitant to deal with Venezuela's anti-West government.

Oppenheimer & Co. analyst Fadel Gheit said several companies might be interested in some of Citgo's assets, but few would be willing to take on the whole company. Citgo's refineries include facilities in Lake Charles, La., Corpus Christi, Texas and Lemont, Ill. with a combined processing capacity of about 760,000 barrels a day.

"I just doubt any company would want to buy a million barrels of capacity," he said.

There are about 5,600 independently owned and operated Citgo-branded retail outlets that won't be a part of any sale. PdVSA completed its purchase of Citgo from Southland Corp. in 1990.

Cowen & Co. analyst Sam Margolin said Citgo's midstream assets--dock space, pipelines, and storage terminals--might be highly sought after. Many midstream companies are structured as master limited partnerships, and some refiners have launched partnerships of their own in recent years. That corporate structure can make raising money for large acquisitions an easier task.

Any consideration to sell Citgo comes from Venezuela's cash crunch as well as concern over upcoming rulings by the World Bank's International Centre for Settlement of Investment Disputes, or ICSID, that could result in liens on Citgo assets.

"They're going to lose the arbitration hearings," said Mr. Szabo, president of Stone Bond Technologies in Houston. "They'll lose, so these assets can be frozen."

ConocoPhillips and Exxon Mobil both entered arbitration requests before the ICSID in response to the Venezuelan government's 2007 nationalization of projects in the oil-rich Orinoco region. Estimates of potential settlements against Venezuela vary but experts say the socialist country will likely be ordered to compensate the U.S. companies a total of $10 billion.

"Venezuela is looking under couch cushions for coins because they need money," said Russ Dallen, head of Caracas Capital Markets. "The Exxon and ConocoPhillips judgments are coming any day now and the easiest place to enforce those judgments will be the United States."

Soon after Venezuela President Nicolas Maduro was elected to office last year, the country of 29 million residents began to endure a strangling scarcity of dollars, which has created widespread shortages in an economy that depends on imports for just about everything other than oil.

Critics of the government say the scarcity comes from high inflation and an overvalued currency, but the government blames the opposition and outside forces for trying to sabotage the economy.

Venezuela has turned to China for loans totaling more than $50 billion in mostly oil-for-credit swaps, but has been stretched thin as PdVSA output sags.

"By closing Citgo they would free up a lot of oil going to the United States and continue to service China," said Thomas O'Donnell, a visiting Energy professor at the Freie University in Berlin and an expert on the Venezuelan oil industry. "But that is ultimately robbing Peter to pay Paul. They need to raise production."

Argus Media earlier reported that PdVSA is weighing a sale of Citgo and the Chalmette refinery stake.

As for the refineries, Mr. Margolin said some existing independent refiners might want to take bigger positions on the U.S. Gulf Coast, where much of the output from shale formations is building up.

U.S. refineries that have changed hands in recent years have commanded lower prices than what PdVSA might be seeking.

Marathon last year agreed to pay about $2.4 billion for BP's 475,000 barrel-a-day refinery in Texas City, Texas. And in 2013 BP sold its Carson refinery in Southern California to Tesoro Corp. in a deal valued at $2.4 billion.

At least one company has signaled that it is likely pass on Citgo's refineries. During an earnings call Wednesday, Phillips 66 Chief Executive Greg Garland indicated the company probably isn't interested in buying more refineries.

"I think we've consistently said we have better opportunities to invest in our midstream and chemicals business," Mr. Garland said.

Gillian Tan contributed to this article.

Credit: By Ezequiel Minaya, Alison Sider and Dana Cimilluca

Subject: Master limited partnerships; Petroleum refineries; Petroleum industry

Location: China Venezuela United States--US

Company / organization: Name: Southland Corp; NAICS: 445110, 451140, 311511; Name: Marathon Petroleum Corp; NAICS: 324110; Name: Petroleos de Venezuela SA; NAICS: 211111; Name: Cowen & Co LLC; NAICS: 523110; Name: International Bank for Reconstruction & Development--World Bank; NAICS: 928120; Name: Valero Energy Corp; NAICS: 486210, 324110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Jul 30, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1549551526

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1549551526?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or d istribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon's Profit Climbs Despite Lower Production; Shares Sag as Higher Oil Prices Lift Earnings

Author: Gilbert, Daniel; Stynes, Tess

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 July 2014: n/a.

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Abstract:

David Rosenthal, Exxon's head of investor relations, wouldn't even confirm if the company still plans to drill the first well in the Kara Sea next month. [...]we have a chance to look at the sanctions, read them, assess them, evaluate them, it just wouldn't be appropriate" to comment, Mr. Rosenthal told analysts on Thursday.

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Exxon Mobil Corp. said its profit for the second quarter rose 28%, despite pumping oil and gas at its lowest rate in almost five years.

America's biggest energy company by revenue was buoyed by higher oil prices in the U.S. and globally, lifting its earnings to $8.78 billion on revenue of $111.65 billion. It also got a boost from higher profits for refining crude and manufacturing chemicals. But its oil and gas production sank 5.7% from a year ago, the lowest rate since the third quarter of 2009.

The slumping production reflects in part a willingness by Exxon's leadership to shed some of its less-profitable barrels, such as a concession in Abu Dhabi that expired earlier this year. Exxon has lagged behind Chevron Corp. in squeezing the most profit from the barrels of oil and gas, and Chief Executive Rex Tillerson has made improving profitability one of the company's highest priorities.

It has made significant progress. Exxon raked in a $22.55 profit a barrel in the second quarter, more than it has since oil prices spiked in 2008. But the company continues to face challenges in replacing the amount of oil and gas it pumps from the ground. Even setting aside the lost production from Abu Dhabi, Exxon's production declined 2.3% from a year earlier.

Exxon has begun pumping oil and gas from two of its major projects, an oil sands venture in Canada that started up last year and a gas-export project in Papua New Guinea that shipped its first cargoes in the second quarter.

Oil and gas output "for the year remains in line with plans," Mr. Tillerson said in a prepared statement on Thursday.

The challenges of finding enough new sources of oil and gas to replenish its reserves has led Exxon to explore Russia's Arctic seas, its most ambitious exploration effort in years.

Exxon and its partner, Kremlin-controlled oil titan OAO Rosneft, are set to begin drilling what is known as the University prospect next month in the Kara Sea. The companies must finish the first well by October, when sea ice will make the waters unnavigable.

But U.S. and European sanctions against Russia announced earlier this week could complicate Exxon's plans. David Rosenthal, Exxon's head of investor relations, wouldn't even confirm if the company still plans to drill the first well in the Kara Sea next month. "Until we have a chance to look at the sanctions, read them, assess them, evaluate them, it just wouldn't be appropriate" to comment, Mr. Rosenthal told analysts on Thursday.

Exxon and its biggest rivals are counting on major projects to revive sagging production. Chevron, which reports earnings Friday, has said its production for the first two months of the second quarter slid to the lowest level in two years.

ConocoPhillips, by contrast, said on Thursday is oil and gas output increased 2.7% from a year ago, though a rise in capital spending helped keep profits relatively flat.

Overall, Exxon reported a per share profit of $2.05, up from $1.55 a year earlier.

Exxon's second-quarter results easily beat analyst estimates, but shares declined slightly amid a broader market selloff.

The company credited asset sales in Hong Kong for part of the increase in its quarterly profit. The company sold its 60% share in Hong Kong's local electric company--Castle Peak Power Co.--to its longtime partner late last year, as well as its 51% share in Hong Kong Pumped Storage Development Co.

Refining and marketing earnings surged 80% to $711 million as weaker refining margins were offset by lower operating expenses and increased petroleum sales.

The company bought back $3 billion of its own shares in the latest quarter, and cut capital spending by 4.3% to $9.8 billion.

Credit: By Daniel Gilbert and Tess Stynes

Subject: Petroleum industry; Financial performance; Corporate profits; Profitability

Location: United States--US Abu Dhabi United Arab Emirates

People: Tillerson, Rex W

Company / organization: Name: Chevron Corp; NAICS: 324110, 211111; Name: OAO Rosneft; NAICS: 324110; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Jul 31, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1549918723

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Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Earnings: Higher Oil Prices Lift Exxon Profit

Author: Gilbert, Daniel; Stynes, Tess

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]01 Aug 2014: B.4.

ProQuest document link

Abstract:

David Rosenthal, Exxon's head of investor relations, wouldn't even confirm if the company still plans to drill the first well in the Kara Sea next month. [...]we have a chance to look at the sanctions, read them, assess them, evaluate them, it just wouldn't be appropriate" to comment, Mr. Rosenthal told analysts on Thursday.

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Exxon Mobil Corp. said its profit for the second quarter rose 28%, despite pumping oil and gas at its lowest rate in almost five years.

America's biggest energy company by revenue was buoyed by higher oil prices in the U.S. and globally, lifting its earnings to $8.78 billion on revenue of $111.65 billion. It also got a boost from higher profits for refining crude and manufacturing chemicals. But its oil and gas production sank 5.7% from a year ago, the lowest rate since the third quarter of 2009.

The slumping production reflects in part a willingness by Exxon's leadership to shed some of its less-profitable barrels, such as a concession in Abu Dhabi that expired earlier this year. Exxon has lagged behind Chevron Corp. in squeezing the most profit from the barrels of oil and gas, and Chief Executive Rex Tillerson has made improving profitability one of the company's highest priorities.

It has made significant progress. Exxon raked in a $22.55 profit a barrel in the second quarter, more than it has since oil prices spiked in 2008. But the company continues to face challenges in replacing the amount of oil and gas it pumps from the ground. Even setting aside the lost production from Abu Dhabi, Exxon's production declined 2.3% from a year earlier.

Exxon has begun pumping oil and gas from two of its major projects, an oil sands venture in Canada that started up last year and a gas-export project in Papua New Guinea that shipped its first cargoes in the second quarter.

Oil and gas output "for the year remains in line with plans," Mr. Tillerson said.

The challenges of finding enough new sources of oil and gas to replenish its reserves has led Exxon to explore Russia's Arctic seas, its most ambitious exploration effort in years.

Exxon and its partner, Kremlin-controlled oil titan OAO Rosneft, are set to begin drilling what is known as the University prospect next month in the Kara Sea. The companies must finish the first well by October, when sea ice will make the waters unnavigable.

But U.S. and European sanctions against Russia announced earlier this week could complicate Exxon's plans. David Rosenthal, Exxon's head of investor relations, wouldn't even confirm if the company still plans to drill the first well in the Kara Sea next month. "Until we have a chance to look at the sanctions, read them, assess them, evaluate them, it just wouldn't be appropriate" to comment, Mr. Rosenthal told analysts on Thursday.

Exxon and its biggest rivals are counting on major projects to revive sagging production. Chevron, which reports earnings Friday, has said its production for the first two months of the second quarter slid to the lowest level in two years.

ConocoPhillips, by contrast, said on Thursday is oil and gas output increased 2.7% from a year ago, though a rise in capital spending helped keep profits relatively flat.

Overall, Exxon reported a per share profit of $2.05, up from $1.55 a year earlier.

The company credited asset sales in Hong Kong for part of the increase in its quarterly profit. The company sold its 60% share in Hong Kong's local electric company -- Castle Peak Power Co. -- to its longtime partner late last year, as well as its 51% share in Hong Kong Pumped Storage Development Co.

Refining and marketing earnings surged 80% to $711 million.

Credit: By Daniel Gilbert and Tess Stynes

Subject: Petroleum industry; Financial performance; Corporate profits; Profitability; Company reports; Earnings per share

Location: United States--US Abu Dhabi United Arab Emirates

People: Tillerson, Rex W

Company / organization: Name: Chevron Corp; NAICS: 324110, 211111; Name: OAO Rosneft; NAICS: 324110; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 3100: Capital & debt management; 8510: Petroleum industry; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.4

Publication year: 2014

Publication date: Aug 1, 2014

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1550071553

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1550071553?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Slide in Oil Prices Unplugs Energy Stocks --- Exxon Mobil and Peers Take a Hit; Nasdaq, Russell Indexes Advance

Author: Strumpf, Dan

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]09 Sep 2014: C.4.

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Lucas Turton, chief investment officer at Windham Capital Management, said in the spring he boosted his bets on European shares, which have been stung this year on growth concerns, and stocks in emerging markets.

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U.S. stocks eased as investors took a breather following last week's gains and weighed the outlook for interest-rate increases by the Federal Reserve.

Energy companies, meanwhile, posted steep losses, as U.S. oil prices fell to their lowest level in eight months.

Investors continued to digest Friday's disappointing jobs report for August in the absence of other market-moving news.

Though employers made fewer hires than expected, money managers said the report gave the Fed more leeway as central-bank officials consider when to raise interest rates. On Friday, the S&P 500 notched its 33rd record close of the year, capping a modest weekly rally for stocks broadly.

Shares gave some of those gains back on Monday. The Dow Jones Industrial Average fell 25.94, or 0.2%, to 17111.42. The S&P 500 index slipped 6.17, or 0.3%, to 2001.54.

"Our sense is that investors are largely not doing a whole heck of a lot because they don't have to," said Keith Bliss, senior vice president at brokerage Cuttone & Co.

The Fed is widely expected to begin raising interest rates next year after it concludes its bond-buying program in October.

Investors are now focused on the timing and speed of the anticipated increases, reading deeply into economic updates for clues on how the central bank might respond. Monday's economic calendar was light, however.

Bucking the broader market, shares of technology companies and small companies rose. The tech-heavy Nasdaq Composite Index added 9.39, or 0.2%, to 4592.29. The Russell 2000 small-cap index gained 2.18, or 0.2%, to 1172.31.

Many investors have been questioning how much further stocks can rise given their strides this year and relatively high valuations. Anwiti Bahuguna, a senior portfolio manager who helps oversee $12 billion in investments for Columbia Management, said she lightened her bet on stocks globally about two weeks ago on concerns that returns will be limited. Instead, Ms. Bahuguna is boosting her cash holdings.

"We don't believe [stocks] are massively overvalued, but we don't see enormous opportunities," she said.

The gains in U.S. stocks this year have some investors looking outside the U.S. for returns. The S&P 500 is up 8.3% this year, on top of a 30% rally in 2013.

Lucas Turton, chief investment officer at Windham Capital Management, said in the spring he boosted his bets on European shares, which have been stung this year on growth concerns, and stocks in emerging markets.

"We are very much in a benign market" in the U.S., said Mr. Turton, whose firm manages about $1.3 billion. "European equities [are] more attractive because they have not run up, and U.S. equities have run up a little bit."

European markets, however, were more turbulent on Monday following a Scottish independence poll over the weekend that indicated that the number of people in favor of independence surpassed those opposing a split with the U.K. for the first time.

The Stoxx Europe 600 shed 0.4%, while shares of banks and other businesses likely to be most affected by a separatist victory were hit hardest. The British pound fell to its lowest level against the dollar in nine months.

U.S. oil futures shed 0.7% to $92.66 a barrel, their lowest price since January, amid concerns that demand isn't keeping pace with booming supply. Brent crude fell to its lowest level since May 2013.

The pullback knocked shares of energy companies. The S&P 500 Energy index fell 1.6%. Exxon Mobil Corp. declined $1.49, or 1.5%, to $97.77.

In corporate news, Alibaba Group Holding Ltd. began pitching its stock to investors on Monday ahead of its initial public offering.

Shares of Yahoo Inc., which owns a 24% stake in the Chinese e-commerce company, rose 2.22, or 5.6%, to 41.81.

Campbell Soup Co. said it swung to a profit in the latest quarter, but the company's forecast for fiscal-year earnings fell short of expectations. The company also said its efforts to reshape the company are taking longer than expected. Shares fell 1.15, or 2.6%, to 43.39.

Electrolux AB said Monday it agreed to buy General Electric Co.'s home-appliance division for $3.3 billion. GE shares declined two cents, or 0.1%, to 26.08. U.S.-traded shares of Sweden's Electrolux gained 2.69, or 5.1%, to 55.44.

Gold futures lost 1% to $1252.70 an ounce. That was the lowest settlement for the metal since June 6.

(See related article: "Commodities Report: Crude Prices Sink As Soft Economic Data From U.S., China Trouble" -- WSJ Sept. 9, 2014)

Credit: By Dan Strumpf

Subject: Dow Jones averages; Stock prices; Daily markets (wsj)

Location: United States--US

Classification: 3400: Investment analysis & personal finance; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: C.4

Publication year: 2014

Publication date: Sep 9, 2014

column: Monday's Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1560711312

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1560711312?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

U.S. Readies New Energy Sanctions on Russia; Move Could Imperil Existing Ties Between Exxon and Rosneft

Author: Harder, Amy; Mauldin, William

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Sep 2014: n/a.

ProQuest document link

Abstract:

The sanctions wouldn't affect current oil production, but could imperil the future of existing partnerships, including a deal between Exxon Mobil Corp. and OAO Rosneft, the Kremlin-controlled oil giant, to drill in the Arctic Ocean.

Links: 360 Link to Full Text

Full text:  

WASHINGTON--The U.S. is close to imposing the toughest round of energy sanctions so far on Russia, measures that would also hit Western companies like Exxon Mobil that are working with Russian state-controlled oil companies.

The sanctions, which the European Union is expected to match, would ban energy companies from working with Russia on future oil exploration in the Russian Arctic, deep seas and shale rock formations, according to a U.S. official.

The sanctions wouldn't affect current oil production, but could imperil the future of existing partnerships, including a deal between Exxon Mobil Corp. and OAO Rosneft, the Kremlin-controlled oil giant, to drill in the Arctic Ocean.

Previous sanctions banned only the export of technology that could be used in such projects. Other companies potentially affected include BP PLC and Royal Dutch Shell PLC.

"It'll deny them some contracts for sure, but it hurts Russia a lot more," the U.S. official said, referring to Western energy companies. "This puts their future economic growth in danger."

The U.S. official cautioned that the deal isn't final and may not ever be adopted, depending in part on actions by the EU and whether the cease-fire that took effect Friday between pro-Russia separatists and Ukraine holds.

A spokeswoman for the Treasury Department, which takes the lead on U.S. sanctions, declined to comment.

Elizabeth Rosenberg, a former Treasury official who helped implement sanctions on Iran's oil industry, said that such a move, if enacted, "would be extremely significant and would directly impact a number of Western companies that partner with Russian companies."

To offset declining output from older traditional wells, Russia--one of the world's biggest oil-producing countries--is seeking to develop oil fields that are difficult to reach, which often requires cooperation with Western companies.

"The Russian companies that would be affected by this are large companies that generate substantial revenue for the Russian government, and they require partnership with Western companies for technology and access to capital," said Ms. Rosenberg, who is now a senior fellow at the Center for New American Security, a Washington-based think tank.

A Rosneft spokeswoman declined to comment.

Exxon and Rosneft are drilling now in the Kara Sea before October, when ice will make the Arctic waters unnavigable. The Arctic exploration Exxon and Rosneft are doing, if successful, wouldn't generate meaningful production for years.

Exxon shares fell sharply in aftermarket trading when the news initially broke on Wednesday, though settled at a loss of .06%, to $96.81.

The EU this week approved this new round of sanctions against Moscow, which includes these energy sanctions, but it has held off enacting them while Kiev works with Moscow on a solution to end fighting with separatists in Ukraine's eastern regions.

A meeting Wednesday in Brussels ended without agreement; EU officials were to reconvene Thursday.

Some countries, including Finland, Slovakia and Cyprus, are arguing that there has been an improvement in the situation in Ukraine since the cease-fire, and that the bloc should wait to see how it evolves. Others such as the U.K., Germany and Poland argue the EU should enact the sanctions as promised but lay out clear conditions under which they could be rolled back.

"The issue is now to publish them and therefore enforce them," German Chancellor Angela Merkel told the lower house of parliament in Berlin earlier in the day.

Italian Foreign Minister Federica Mogherini, soon to become the EU foreign policy chief, said in Brussels that the issue may have to go back to EU leaders before a final decision can be made.

The U.S., EU and other Western countries have imposed sanctions on Russia this year after Moscow moved to annex Ukraine's Crimea region. Officials in the U.S. and other countries say Russia's military is participating in fighting inside Ukraine, a charge the Kremlin denies.

The latest sanctions would increase the concerns of business groups that worry that the U.S. efforts to punish Moscow are starting to hurt the prospects of global firms significantly.

Business groups also worry that stricter sanctions will lead Russians to reject Western brands, doing long-term harm to consumer-focused firms that aren't directly affected by the sanctions and aren't facing retaliation from Russian officials.

Russia, which has a much smaller, less diversified economy compared with the U.S. and EU, has threatened to respond asymmetrically to the next round of sanctions, perhaps by banning Western flights over its territory, which would hit European airlines and U.S. freight firms.

U.S. officials say they're working hard to minimize any boomerang effect of the sanctions. Many of the restrictions so far have targeted Russian companies' access to global financial markets, dominated U.S. lenders and others that use the dollar.

According to documents reviewed by The Wall Street Journal, the latest EU sanctions, which haven't been implemented, would further limit the international financing of three Russian energy firms: OAO Gazpromneft, the oil arm of Russia's natural-gas giant; pipeline operator OAO Transneft and Rosneft.

Five state-controlled banks, including giants OAO Sberbank and VTB Group, would also face tighter EU restrictions that cut their ability to borrow in Europe to 30 days, from 90 days in a previous round of sanctions.

The U.S. is expected to match the EU with similar financial restrictions.

"The United States is finalizing measures to both deepen and broaden our sanctions across Russia's financial, energy, and defense sectors," State Department spokeswoman Marie Harf said Tuesday. "We're making our decisions on our own timeline but obviously coordinating very closely" with the EU.

Credit: By Amy Harder and William Mauldin

Subject: International relations-US; Petroleum industry; Truces & cease fires; Petroleum production; Energy industry

Location: Russia United States--US Ukraine

Company / organization: Name: OAO Rosneft; NAICS: 324110; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Sep 10, 2014

Section: World

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1561141455

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1561141455?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Sanctions Over Ukraine Put Exxon at Risk; Deal With Russia's Rosneft to Drill in Arctic Is Crucial to Oil Company

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Sep 2014: n/a.

ProQuest document link

Abstract:

When Exxon Mobil Corp. Chief Executive Rex Tillerson detailed a deal to drill for oil in Russia's Arctic Sea two years ago, he predicted that the project would strengthen the ties between the U.S. and Russia. No other Western energy company has as much direct exposure to Russia as Exxon, thanks to a $3.2 billion deal giving the company access to a swath of the Arctic larger than Texas that could hold the equivalent of billions of barrels of oil and gas.

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Full text:  

When Exxon Mobil Corp. Chief Executive Rex Tillerson detailed a deal to drill for oil in Russia's Arctic Sea two years ago, he predicted that the project would strengthen the ties between the U.S. and Russia.

Instead, Exxon has wound up in the cross hairs of U.S. foreign policy, which could threaten one of the company's best chances to find and tap significant--and much needed--amounts of crude oil.

The U.S. on Thursday announced targeting Russia's financial, defense and energy sectors in a bid to punish the Kremlin for stoking the military conflict in Ukraine. Details of the sanctions, designed to match new measures , are set to be released Friday.

A U.S. official said the new penalties would affect Exxon's current drilling in the icy Kara Sea with its Kremlin-controlled partner, OAO Rosneft, though the extent of the impact was unclear Thursday.

No other Western energy company has as much direct exposure to Russia as Exxon, thanks to a $3.2 billion deal giving the company access to a swath of the Arctic larger than Texas that could hold the equivalent of billions of barrels of oil and gas.

Officials in Europe, which has extensive trade links to Russia, have insisted that Western nations share the fallout from sanctions against Moscow. Russia has said it would retaliate against additional sanctions with measures of its own, further heightening the risks to companies operating there, legal experts said.

Exxon is "assessing the sanctions," said Alan Jeffers, a company spokesman. "It's our policy to comply with all laws."

The scale of the Russia's energy resources makes it hard for Exxon to bow out of its Kremlin partnership, said Kenneth Medlock, a professor at Rice University's Baker Institute for Public Policy. "Things are fundamentally different, but I don't think so much so that you abandon the potential opportunity," he said. "You want to try to stay in as much as you can."

From a public-relations standpoint, the relationship puts Exxon in the awkward position of receiving accolades from Vladimir Putin while the White House is trying to isolate the Russian leader.

Investors showed little concern over the sanctions as Exxon's shares rose slightly Thursday.

But some shareholders said sanctions ratcheted up concerns they already had about the company's expensive Russian commitment.

"When you overlay geopolitical factors and sanctions, that just escalates the risk," said Natasha Lamb, director of equity research at Arjuna Capital, which advocates for environmentally conscious policies.

The sanctions won't hurt Exxon in the near term. The amount spent on exploring the Arctic's Kara Sea is relatively small for Exxon and it won't be able to pump significant amounts of oil or gas there for years.

But if the venture is significantly delayed or hampered, it would deal a blow to Exxon's efforts to replenish its store of fuels it pumps from the ground. The company's production has been essentially flat for years, and last quarter fell to the lowest level since 2009.

Russia's Arctic is one of the few regions in the world that could hold enough oil and gas to boost Exxon's output.

There are other big oil and gas deposits, but some of the countries that control them, including Venezuela and Saudi Arabia, favor their state-owned energy companies.

For Exxon, Russia "provides a way for them to separate themselves from the pack," said Allen Good, a Morningstar Inc. analyst. "If they ultimately can't capitalize on that, it puts them back into a hypercompetitive environment."

Mr. Tillerson, 62 years old, knows Russia well. He managed Exxon's operations there earlier in his career, helping secure a deal to tap oil in Russia's far east. The project, known as Sakhalin-1, was among the most complicated the company has executed and included drilling a well that stretched more than 7 miles beneath the seafloor.

Sakhalin helped cement Exxon's reputation for engineering prowess and burnished Mr. Tillerson's standing at the company. He became CEO in 2006.

Since then, Exxon has pumped less oil and gas, while reaping less profit from each barrel. As Mr. Tillerson seeks to boost the company's output, he has steered the company into a tighter alliance with the Kremlin.

In 2012, Exxon beat out BP PLC and other competitors by signing a deal with Rosneft. In exchange for a 33% stake in the Arctic project, Exxon agreed to pay for the majority of the exploration costs, estimated at more than $3.2 billion.

The companies have broadened their pact to explore the Black Sea and a shale-rock formation in Siberia. Rosneft acquired an interest in some of Exxon's properties in the Gulf of Mexico.

Mr. Tillerson in 2012 told analysts that the alliance with Rosneft "cannot be anything but helpful to broadening the relationship between the American people and the Russian people."

The two companies last year even sponsored a National Gallery of Art exhibit on Serge Diaghilev's groundbreaking Ballets Russes. Mr. Tillerson also accepted the Order of Friendship from Russian President Vladimir Putin, adding it to his official biography on the company's website.

Despite several rounds of sanctions, including ones targeting Rosneft and its chief executive, with its Russia plans. In August the two companies began drilling the first well in the Kara Sea in what is known as the University prospect.

Mr. Tillerson has faced questions over the strategy. A shareholder at Exxon's annual meeting in June pressed the chief executive on how he planned to handle the political challenges of operating in Russia.

The company's global operations meant it was well insulated against the risks of particular investments, Mr. Tillerson replied, adding that the company would oppose sanctions.

"We always encourage the people who are making those decisions to consider the very broad collateral damage of who are they really harming with sanctions," he said.

Amy Harder and William Mauldin contributed to this article.

Write to Daniel Gilbert at

Credit: By Daniel Gilbert

Subject: Petroleum industry; Sanctions; Energy industry

Location: United States--US Russia Kara Sea

People: Putin, Vladimir

Company / organization: Name: OAO Rosneft; NAICS: 324110; Name: Arjuna Capital; NAICS: 523920; Name: James A Baker III Institute for Public Policy; NAICS: 541720; Name: Rice University; NAICS: 611310; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Sep 11, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1561361568

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1561361568?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Sanctions Threaten Exxon --- New U.S. Restrictions Put Oil Giant's Big Bet With Russian Partner in Cross Hairs

Author: Gilbert, Daniel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]12 Sep 2014: A.1.

ProQuest document link

Abstract:

When Exxon Mobil Corp. Chief Executive Rex Tillerson detailed a deal to drill for oil in Russia's Arctic Sea two years ago, he predicted that the project would strengthen the ties between the U.S. and Russia. No other Western energy company has as much direct exposure to Russia as Exxon, thanks to a $3.2 billion deal giving the company access to a swath of the Arctic larger than Texas that could hold the equivalent of billions of barrels of oil and gas.

Links: 360 Link to Full Text

Full text:  

When Exxon Mobil Corp. Chief Executive Rex Tillerson detailed a deal to drill for oil in Russia's Arctic Sea two years ago, he predicted that the project would strengthen the ties between the U.S. and Russia.

Instead, Exxon has wound up in the cross hairs of U.S. foreign policy, which could threaten one of the company's best chances to find and tap significant -- and much needed -- amounts of crude oil.

The U.S. on Thursday announced new sanctions targeting Russia's financial, defense and energy sectors in a bid to punish the Kremlin for stoking the military conflict in Ukraine. Details of the sanctions, designed to match new measures imposed by the European Union, are set to be released Friday.

A U.S. official said the new penalties would affect Exxon's current drilling in the icy Kara Sea with its Kremlin-controlled partner, OAO Rosneft, though the extent of the impact was unclear Thursday.

No other Western energy company has as much direct exposure to Russia as Exxon, thanks to a $3.2 billion deal giving the company access to a swath of the Arctic larger than Texas that could hold the equivalent of billions of barrels of oil and gas.

Officials in Europe, which has extensive trade links to Russia, have insisted that Western nations share the fallout from sanctions against Moscow. Russia has said it would retaliate against additional sanctions with measures of its own, further heightening the risks to companies operating there, legal experts said.

Exxon is "assessing the sanctions," said Alan Jeffers, a company spokesman. "It's our policy to comply with all laws."

The scale of the Russia's energy resources makes it hard for Exxon to bow out of its Kremlin partnership, said Kenneth Medlock, a professor at Rice University's Baker Institute for Public Policy. "Things are fundamentally different, but I don't think so much so that you abandon the potential opportunity," he said. "You want to try to stay in as much as you can."

From a public-relations standpoint, the relationship puts Exxon in the awkward position of receiving accolades from Vladimir Putin while the White House is trying to isolate the Russian leader.

Investors showed little concern over the sanctions as Exxon's shares rose slightly Thursday.

But some shareholders said sanctions ratcheted up concerns they already had about the company's expensive Russian commitment.

"When you overlay geopolitical factors and sanctions, that just escalates the risk," said Natasha Lamb, director of equity research at Arjuna Capital, which advocates for environmentally conscious policies.

The sanctions won't hurt Exxon in the near term. The amount spent on exploring the Arctic's Kara Sea is relatively small for Exxon and it won't be able to pump significant amounts of oil or gas there for years.

But if the venture is significantly delayed or hampered, it would deal a blow to Exxon's efforts to replenish its store of fuels it pumps from the ground. The company's production has been essentially flat for years, and last quarter fell to the lowest level since 2009.

Russia's Arctic is one of the few regions in the world that could hold enough oil and gas to boost Exxon's output.

There are other big oil and gas deposits, but some of the countries that control them, including Venezuela and Saudi Arabia, favor their state-owned energy companies.

For Exxon, Russia "provides a way for them to separate themselves from the pack," said Allen Good, a Morningstar Inc. analyst. "If they ultimately can't capitalize on that, it puts them back into a hypercompetitive environment."

Mr. Tillerson, 62 years old, knows Russia well. He managed Exxon's operations there earlier in his career, helping secure a deal to tap oil in Russia's far east. The project, known as Sakhalin-1, was among the most complicated the company has executed and included drilling a well that stretched more than 7 miles beneath the seafloor.

Sakhalin helped cement Exxon's reputation for engineering prowess and burnished Mr. Tillerson's standing at the company. He became CEO in 2006.

Since then, Exxon has pumped less oil and gas, while reaping less profit from each barrel. As Mr. Tillerson seeks to boost the company's output, he has steered the company into a tighter alliance with the Kremlin.

In 2012, Exxon beat out BP PLC and other competitors by signing a deal with Rosneft. In exchange for a 33% stake in the Arctic project, Exxon agreed to pay for the majority of the exploration costs, estimated at more than $3.2 billion.

The companies have broadened their pact to explore the Black Sea and a shale-rock formation in Siberia. Rosneft acquired an interest in some of Exxon's properties in the Gulf of Mexico.

Mr. Tillerson in 2012 told analysts that the alliance with Rosneft "cannot be anything but helpful to broadening the relationship between the American people and the Russian people."

The two companies last year even sponsored a National Gallery of Art exhibit on Serge Diaghilev's groundbreaking Ballets Russes. Mr. Tillerson also accepted the Order of Friendship from Russian President Vladimir Putin, adding it to his official biography on the company's website.

Despite several rounds of sanctions, including ones targeting Rosneft and its chief executive, Exxon has pushed forward with its Russia plans. In August the two companies began drilling the first well in the Kara Sea in what is known as the University prospect.

Mr. Tillerson has faced questions over the strategy. A shareholder at Exxon's annual meeting in June pressed the chief executive on how he planned to handle the political challenges of operating in Russia.

The company's global operations meant it was well insulated against the risks of particular investments, Mr. Tillerson replied, adding that the company would oppose sanctions.

"We always encourage the people who are making those decisions to consider the very broad collateral damage of who are they really harming with sanctions," he said.

---

Amy Harder and William Mauldin contributed to this article.

Credit: By Daniel Gilbert

Subject: Petroleum industry; Energy industry; Offshore drilling; Sanctions; International relations-US -- Russia

Location: United States--US Russia Kara Sea

People: Putin, Vladimir Tillerson, Rex W

Company / organization: Name: OAO Rosneft; NAICS: 324110; Name: European Union; NAICS: 926110, 928120; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 1300: International trade & foreign investment; 8510: Petroleum industry; 9176: Eastern Europe; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.1

Publication year: 2014

Publication date: Sep 12, 2014

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1561408294

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1561408294?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright o wner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon, Linn Energy Agree to Swap More Assets; Move Expands Exxon's Presence In Permian Basin in Texas and New Mexico; Linn Adds In California

Author: Stynes, Tess

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Sep 2014: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. and Linn Energy LLC agreed to a non-monetary asset swap that will expand the presence of Exxon subsidiary XTO Energy Inc. in the Permian Basin and increase Linn's interests in California.

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Full text:  

Exxon Mobil Corp. and Linn Energy LLC agreed to a non-monetary asset swap that will expand the presence of Exxon subsidiary XTO Energy Inc. in the Permian Basin and increase Linn's interests in California.

The deal, expected to close in the fourth quarter, is the second such asset swap by the companies.

Under the transactions announced Thursday, Exxon will add 17,800 net acres in the Midland Basin core area in west Texas that it says have the most prospects in the Wolfcamp and Spraberry formations. Exxon Mobil will also receive 800 net acres in the New Mexico Delaware Basin.

Both acreage positions will be developed by its XTO unit. The transaction expands XTO's leaseholds across the Permian Basin to more than 1.5 million acres and its net oil-equivalent production to more than 95,000 barrels a day.

Linn will receive interest in about 500 net acres in Exxon's South Belridge Field, near Bakersfield, Calif., which currently produce roughly 3,400 barrels of oil a day.

Under a similar deal announced in May, Exxon added nearly 26,000 acres to U.S. oil-and-gas properties managed by XTO. Linn Energy received a portion of XTO's interest in the Hugoton gas field in Kansas and Oklahoma.

Credit: By Tess Stynes

Subject: Petroleum industry; Oil exploration

Location: United States--US Texas California Bakersfield California Permian Basin

Company / organization: Name: Linn Energy LLC; NAICS: 211112; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Sep 18, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: New spapers

Language of publication: English

Document type: News

ProQuest document ID: 1562786769

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1562786769?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon Winds Down Russian Drilling; Energy Giant Halts Arctic Project Due to U.S. Sanctions

Author: Anonymous

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Sep 2014: n/a.

ProQuest document link

Abstract:

NEW YORK--Exxon Mobil said Friday that it will wind down a drilling project in Russia in compliance with U.S. sanctions, but said it received a license to keep working beyond the sanctions' deadline in order to complete the work.

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NEW YORK--Exxon Mobil said Friday that it will wind down a drilling project in Russia in compliance with U.S. sanctions, but said it received a license to keep working beyond the sanctions' deadline in order to complete the work.

U.S. sanctions against Russia over its involvement in the Ukraine require the removal of U.S. workers on projects in the Russian Arctic and other select locations by September 26.

Exxon is drilling an exploratory well in the Kara Sea in the Russian Arctic, and had planned to stop drilling in October in order to remove equipment and personnel before winter set in.

Exxon said it has received a license from the U.S. Treasury Department for more time to wind down operations safely and close up the project before winter "to ensure a safe and environmentally responsible completion," said Exxon spokesman Richard Keil. "The license is non-renewable and no further work is permitted."

Unless the sanctions remain in place for many more months, they are not expected to lead to a delay in the Kara Sea exploration project.

The project is part of a broad collaboration between Exxon and the Kremlin-controlled Rosneft, Russia's largest oil company. The two aim to explore for oil and gas in technically challenging formations in Russia.

These formations are thought to hold large troves of hydrocarbons, but producing oil from them requires the type of expertise found at western oil companies such as Exxon.

Even if successful, the projects aren't expected to result in new oil and gas production for several years. But they represent an important and possibly enormous resource that could help both Exxon and Russia keep oil production high as current fields naturally deplete.

Exxon shares were up 51 cents, to $97.12 per share, in 4 p.m. New York Stock Exchange trading Friday.

Subject: Petroleum industry; Foreign investment; Petroleum production

Location: United States--US Ukraine Russia Kara Sea

Company / organization: Name: Department of the Treasury; NAICS: 921130; Name: New York Stock Exchange--NYSE; NAICS: 523210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Sep 19, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1563384279

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1563384279?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Total Looks to China to Finance Russian Gas Project Amid Sanctions; Statement Follows Exxon Move to Stop Drilling in Light of Penalities Over Ukraine

Author: Williams, Selina; Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Sep 2014: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:  

Total SA said it was seeking nondollar financing for a gas project in Russia, becoming the second energy company in several days to indicate that Western sanctions on the Kremlin are affecting expansion plans.

Exxon Mobil Corp. on Friday said it would stop drilling in the Russian Arctic.

Major oil companies have played down the impact of sanctions on assets that are already producing oil and gas in Russia. But the comments from France's Total and U.S.-based Exxon show how projects that are key to growth are affected.

Exxon said it had obtained permission from the U.S. government to go beyond the Sept. 26 deadline to safely wind down drilling of the company's first well in the Kara Sea. The company declined to say how long the process would take. Exxon in 2011 formed an exploration joint venture with state-owned OAO Rosneft that the companies estimate will cost at least $3.2 billion.

Total Chief Financial Officer Patrick de la Chevardière said Monday that the company was looking to finance its share in the $27 billion Yamal liquefied-natural-gas project in euros, Chinese yuan and Russian rubles. "The effect of U.S. sanctions was that Yamal LNG will be prevented from raising any dollar financing," Mr. de la Chevardière said at a London news briefing.

Total is developing the Yamal project onshore in the Russian Arctic with independent Russian gas producer OAO Novatek and China National Petroleum Corp.

The sanctions were designed to punish Russia for its aggression in Ukraine. U.S. officials have said the penalties could be lifted if there is evidence that the Kremlin was complying with the terms of a cease-fire signed this month.

But if the measures persist, the sanctions could imperil Exxon's venture with Rosneft--one of the U.S. company's biggest opportunities to find new supplies of oil and gas.

Total, meanwhile, is relying on the Yamal project, which is expected to start up in 2017, to provide a big chunk of the company's production growth. Yamal is estimated to hold proven reserves of 800 million barrels of oil equivalent.

U.S. and European Union sanctions include financing limits on some banks and energy companies and restrictions on technology transfers and equipment to develop offshore Arctic oil and onshore shale oil. The latest round of sanctions added to asset freezes and travel bans on dozens of Russian officials and executives, including one of Novatek's biggest shareholders--Gennady Timchenko.

Yamal is a complex project requiring Western technology that Russia lacks, such as the liquefaction plant that will supercool natural gas into liquid so it can be transported in tankers. The project has managed to proceed despite the sanctions because the companies involved have been able to pursue other avenues for financing.

Russia relies on oil and gas to provide the bulk of the country's revenue, and Yamal is vital to the Kremlin's plans to increase the country's share in the fast-growing global LNG market.

Credit: By Selina Williams and Daniel Gilbert

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Sep 22, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1563923020

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1563923020?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon, Rosneft Find Oil and Gas at Arctic Well; U.S. Sanctions Raise Questions About How the Companies Will Exploit the Resources They Have Found

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Sep 2014: n/a.

ProQuest document link

Abstract:

Rosneft praised other western partners including Schlumberger Ltd., Halliburton Co. and Weatherford International PLC. The Arctic is estimated to hold some of the world's largest deposits of oil and gas that have yet to be tapped.

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Exxon Mobil Corp. and Russia's OAO Rosneft have found major amounts of oil and natural gas at their first well in the Arctic, Rosneft said Saturday, offering a glimpse of the potential buried beneath the ice-studded waters north of Siberia.

But the news raised questions about how Rosneft and Exxon will exploit the resources they have found. U.S. sanctions imposed earlier this month bar companies from providing goods, services and technology for Arctic oil projects, among other types of drilling in Russia.

Exxon a week ago acknowledged the impact of the sanctions as it confirmed that it was winding down drilling of the University-1 well in the Kara Sea.

"We have encountered hydrocarbons but it is premature to speculate on any potential outcome regarding the University-1 exploration well," Alan Jeffers, an Exxon spokesman, said Saturday.

Rosneft said geological data from the well was still being analyzed to come up with an estimate of the resource. But the company touted the early indications, saying it wanted to name the field Pobeda, or "victory" in Russian.

"This is an outstanding result of the first exploratory drilling on a completely new offshore field," Igor Sechin, Rosneft's chief executive, said in a statement. Rosneft praised other western partners including Schlumberger Ltd., Halliburton Co. and Weatherford International PLC.

The Arctic is estimated to hold some of the world's largest deposits of oil and gas that have yet to be tapped. Exxon and Rosneft in 2011 struck a deal to explore Russia's Arctic waters, expanding it to cover an area larger than Texas. The companies have estimated the exploration costs alone will exceed $3.2 billion, with Exxon footing most of the tab.

The University-1 well in the Kara Sea is the first well the companies have drilled in the partnership. The results, however, won't have an immediate impact on Exxon or Rosneft. Even without sanctions, it would likely take years for the companies to pump meaningful amounts of oil and gas.

For Exxon, the deal represents one of its best long-term opportunities to find new sources of oil and gas to replace what it pumps. For Russia, tapping the Arctic's energy riches is part of a strategy to increase domestic production, a mainstay of its economy and geopolitical clout.

U.S. and European officials have imposed sanctions to crimp Russia's ability to develop the Arctic and other new energy resources, such as a giant shale-rock formation in Siberia. The measures are designed to punish the Kremlin for stoking a military conflict in Ukraine, Western officials have said.

A Rosneft spokeswoman didn't immediately respond to a request for comment on the impact of U.S. sanctions on developing the discovered oil and gas.

Credit: By Daniel Gilbert

Subject: Petroleum industry; Sanctions; Natural gas; Drilling

Location: Arctic region United States--US Russia Siberia Kara Sea

Company / organization: Name: Schlumberger Ltd; NAICS: 541512, 334419, 334513, 511210, 213111, 213112; Name: OAO Rosneft; NAICS: 324110; Name: Halliburton Co; NAICS: 213112, 237990

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Sep 27, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1565711283

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1565711283?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon Delays Some Work Because of Ebola; Company Puts Some Drilling on Hold off West Africa

Author: Cook, Lynn

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Oct 2014: n/a.

ProQuest document link

Abstract:

The Ebola outbreak in West Africa has led to Exxon Mobil Corp. delaying some of its drilling plans in the region, including work off the coast of Liberia.

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The Ebola outbreak in West Africa has led to Exxon Mobil Corp. delaying some of its drilling plans in the region, including work off the coast of Liberia.

The company has prohibited travel for some of its employees to countries plagued by Ebola and put some activity on hold, said Rex Tillerson, chief executive of Exxon. He was in Houston on Thursday to speak at an industry event.

"We had some drilling plans for some blocks offshore in West Africa and Liberia and in that area," Mr. Tillerson said. "We are having to look at when it would be prudent to resume operations there because you do have to have shore-based operations, you have to have people going in and out."

The company has also taken some precautionary measures with nonessential personnel, most particularly some of the spouses and children who are with employees that live in West Africa, he said. Exxon's pandemic response plan dates back to the SARS outbreak in Asia.

Exxon acquired an 80% stake in an oil prospect off the coast of Liberia in April 2013. It has spent more than a year planning and preparing to drill with its partner, Canadian Overseas Petroleum. The company also has African operations in Nigeria, Angola and Equatorial Guinea.

Credit: By Lynn Cook

Subject: Petroleum industry; Ebola virus; Oil exploration

Location: Asia Liberia West Africa

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Oct 2, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1566939472

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1566939472?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distributi on is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Mobil Awarded $1.6 Billion in Venezuela Case; World Bank Court Rules Country Didn't Compensate Oil Company Fairly for Expropriated Assets

Author: Vyas, Kejal; Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Oct 2014: n/a.

ProQuest document link

Abstract: None available.

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CARACAS--The World Bank's international arbitration court awarded Exxon Mobil Corp. $1.6 billion on Thursday in its case against the Venezuelan government over assets expropriated in 2007.

The unanimous decision by a panel at the International Center for Settlement of Investment Disputes is a far cry from the $16.6 billion that the U.S. oil major had sought for the nationalization of its Cerro Negro project.

But the judgment comes at a troubling time for Venezuela whose leftist government is facing hard-currency shortages that have led to investor concerns over its ability to pay overseas debt.

"On the one side, Venezuela comes out standing tall from this decision, however it's also negative because they have serious cash flow problems," said Asdrubal Oliveros, head of Caracas-based economic consultancy Ecoanalitica.

Venezuela hailed the result, calling it reasonable.

"Once again the Bolivarian Republic of Venezuela, its government, institutions and workers have confronted and [have] been able to defeat the aggressions of the powerful transnational interests," the Foreign Ministry said in a statement.

The Exxon case is one of the largest of more than 20 claims against the South American nation at the ICSID court demanding compensation for assets seized during a nationalization spree spearheaded by the late socialist President Hugo Chávez. The leader took over scores of companies to secure greater control over key economic sectors, especially its vital oil industry.

The administration of his successor, President Nicolás Maduro, will have to pay $1.4 billion to Exxon for seizing a 41.7% stake in the Cerro Negro project. The operation involved plying heavy oil from the country's vast and resources-rich Orinoco region and processing it into a lighter grade of crude. Exxon has said it cost $3.1 billion to build and operate the facilities between 1997 and 2007.

In addition, Exxon was awarded $179 million for the takeover of the La Ceiba project, as well as interest.

David Eglinton, an Exxon spokesman, said the nationalization was "clearly not a desirable outcome." The tribunal's decision, however, "confirms that the Venezuela government failed to provide fair compensation for expropriated assets," he said.

Venezuela, however, will be able to deduct $908 million that was awarded to Exxon in a 2012 verdict passed down by the Paris-based International Chamber of Commerce over the assets.

At the end, the country is likely to have to pay around $1.1 billion, estimated Joe Kogan, an emerging-market strategist at Scotiabank, who has been closely tracking the mounting arbitration cases against Venezuela. "Not paying would be the equivalent of defaulting on the bonds," he said.

The award, if it is paid, wouldn't have a major impact on Exxon's finances. The oil giant, whose $438 billion in sales last year were equivalent to Venezuela's gross domestic product, had recorded the value of its Cerro Negro investment at $750 million.

But Venezuela will still "likely try to use legal challenges to delay compensation and to negotiate settlements with claimants that include bonds and oil assets, given its severe liquidity constraints," said Risa Grais-Targow, an analyst at the risk consultancy Eurasia Group.

President Maduro has seen his popularity plummet this year as the country's dollar crunch has forced it to scale back on payments to the private companies that service its economy, ranging from medicine and machinery importers to airlines. Residents, as a result, struggle with chronic shortages of food and basic consumer goods like shampoo.

At the same time, Venezuela, which relies on oil for 96% of dollar revenue, saw the price of its basket of crude and petroleum products drop to a more-than three-year low as of Friday, the last time the Oil Ministry reported prices. The country earlier this year said that it was looking to sell its U.S. refining unit Citgo for at least $10 billion.

Recently, the ICSID court awarded $740 million to Gold Reserve, a Spokane, Washington-based mining company whose project was taken over by the government. A decision in the largest of the claims against the country--which was filed by Houston-based energy company ConocoPhillips--is expected around the end of this year.

Investors in Venezuelan bonds weren't comforted this week when the country had to dip into its international reserves to pay off $1.5 billion in maturing bonds. In the coming two months, it has an addition sum of nearly $5 billion to pay in debt, for which Venezuela has to offer the highest yields in the developing world due to the perceived risk.

"That's not a good sign of a nation's finances," said Russell Dallen, a partner at brokerage Caracas Capital Markets.

If Venezuela refuses to pay the Exxon award, the judgment is enforceable in any of the countries that belong to the World Bank forum.

"But Exxon would not have to go far," Mr. Dallen said, noting that Exxon has a refinery joint venture with PdVSA in Chalmette, Louisiana. "At the moment it's like splitting up with someone but still having to go to work with that ex."

Ezequiel Minaya contributed to this article.

Corrections & Amplifications

An earlier version had an incorrect figure in the headline.

Credit: By Kejal Vyas And Daniel Gilbert

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Oct 9, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1609373262

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1609373262?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon, Shell Carbon Emissions Rise Though Pumping Drops; Greenhouse-Gas Increase Reflects Difficulty in Tapping New Sources of Energy

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Oct 2014: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. and Royal Dutch Shell PLC are emitting more carbon dioxide despite tapping less oil and natural gas. "Exxon Mobil is taking action by working to reduce greenhouse-gas emissions in its operations, helping consumers reduce their emissions," supporting research and contributing to policy discussions, a spokesman said.

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Exxon Mobil Corp. and Royal Dutch Shell PLC are emitting more carbon dioxide despite tapping less oil and natural gas.

For every barrel they pump, the two biggest Western oil companies generated 10% more in greenhouse gases each last year than they did in 2011, according to company data.

The rise in such emissions, which trap heat in the atmosphere, in part stems from the mounting difficulty of getting oil and gas out of the ground. Much of the energy companies' new production comes from projects that consume a lot of fuel, such as cooling natural gas to a liquid state for transport, or heating and processing oil that is too heavy to flow on its own.

Exxon and Shell are among hundreds of big firms that provided data on their emissions to the nonprofit Carbon Disclosure Project. The reports, reviewed by The Wall Street Journal, are set for release Wednesday.

Exxon in its report said it improved energy efficiency in refining and manufacturing by 10% and 12%, respectively, between 2002 and 2012. The company said it hasn't set a target for curbing emissions because such measures aren't effective in managing climate risks.

"Exxon Mobil is taking action by working to reduce greenhouse-gas emissions in its operations, helping consumers reduce their emissions," supporting research and contributing to policy discussions, a spokesman said.

The energy companies use slightly different methodologies to calculate their emissions. Exxon, for example, relied on a more recent measurement by an international climate-change panel than its peers, which the company said contributed to a higher emissions figure for last year. Still, the company acknowledges that pumping oil and gas today generates more emissions than in the past.

"It's a disturbing trend," said Sister Patricia Daly, executive director of the Tri-State Coalition for Responsible Investment, a network of investors focused on social and environmental issues. The rise in emissions reinforces the need for targets on reducing carbon, she said. The coalition has filed proposals on behalf of Exxon shareholders asking the company to set targets for curbing greenhouse-gas emissions. The latest proposal, in June, received support from 22% of the shareholder vote.

Shell attributed its emissions increase to producing oil and gas that requires more energy to access, as well to lower production in Nigeria because of theft. Shell in its report projected that its direct emissions would rise in coming years "as our business grows and production becomes more energy intensive."

The company said it takes reducing greenhouse-gas emissions seriously. It cited a Canadian project that will capture a million tons of carbon beginning next year, a large biofuels portfolio and investments in fuels such as natural gas.

Other major Western oil companies have avoided big increases in carbon emissions. BP PLC's emissions from production decreased 0.6% between 2011 and 2013. The company's oil and gas output has fallen sharply since 2010 after selling operations in the wake of Gulf of Mexico oil spill, and its emissions have fallen by a similar degree. BP didn't respond to a request for comment.

Chevron Corp., the second-biggest U.S. oil company, behind Exxon, generated 4% less emissions per barrel last year than in 2011. It is alone among its peers in setting a goal for carbon emissions this year: 1.75% higher than last year. The company cited new facilities that are expected to go online and the resumption of operations at facilities that had been idled.

"Chevron recognizes and shares the concerns of governments and the public about climate change," a spokesman said.

Exxon's global operations generated the equivalent of 148 million metric tons of carbon last year. The figure combines the carbon Exxon emits directly from its own sources, as well as indirectly by consuming energy generated by others. The total rose slightly from 2012 because of emissions from chemical manufacturing and a methodology change, even though emissions from refining fell.

Nearly half of Exxon's emissions comes from tapping oil and gas, which accounts for 90% of the company's earnings. Though production fell 6.1% between 2011 and 2013, total emissions from pumping increased 3.7%.

Exxon noted the trend in higher emissions from oil and gas production in a report earlier this year and said the performance was undesirable. The company in recent years has moved to address the risks of climate change, cutting back on burning natural gas that is unprofitable to capture and eliminating steps in processing heavy crude in Canada.

Exxon also has published two reports on climate earlier this year in response to shareholder concerns. In the reports, Exxon recognized that climate change poses risks to its business but said its projects were necessary to meet growing demand.

As Exxon searches to replenish the oil and gas it pumps, much of its new production takes a lot of energy to tap. Heavy oil, which must be processed extensively, makes up 17% of Exxon's proven reserves. That is up from 15% two years ago.

Shell also has added significant reserves in Canada's oil sands. The company said it invested in equipment to conserve heat generated from its Carmon Creek oil-sands project, which helped keep emissions in check. The company decided against a plan to capture and store carbon underground. The scale of investment wouldn't have been economic, Shell said.

Credit: By Daniel Gilbert

Subject: Emissions; Natural gas; Petroleum industry; Greenhouse effect; Energy policy

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Oct 14, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1611171741

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1611171741?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon, Shell Emit More CO2 Despite Pumping Less Oil

Author: Gilbert, Daniel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]15 Oct 2014: B.1.

ProQuest document link

Abstract:

Exxon Mobil Corp. and Royal Dutch Shell PLC are emitting more carbon dioxide despite tapping less oil and natural gas.

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Exxon Mobil Corp. and Royal Dutch Shell PLC are emitting more carbon dioxide despite tapping less oil and natural gas.

For every barrel they pump, the two biggest Western oil companies generated 10% more in greenhouse gases each last year than they did in 2011, according to company data.

The rise in such emissions, which trap heat in the atmosphere, in part stems from the mounting difficulty of getting oil and gas out of the ground. Much of the energy companies' new production comes from projects that consume a lot of fuel, such as cooling natural gas to a liquid state for transport, or heating and processing oil that is too heavy to flow on its own.

Exxon and Shell are among hundreds of big firms that provided data on their emissions to the nonprofit Carbon Disclosure Project. The reports, reviewed by The Wall Street Journal, are set for release Wednesday.

Exxon in its report said it improved energy efficiency in refining and manufacturing by 10% and 12%, respectively, between 2002 and 2012. The company said it hasn't set a target for curbing emissions because such measures aren't effective in managing climate risks.

"Exxon Mobil is taking action by working to reduce greenhouse-gas emissions in its operations, helping consumers reduce their emissions," supporting research and contributing to policy discussions, a spokesman said.

The energy companies use slightly different methodologies to calculate their emissions. Exxon, for example, relied on a more recent measurement by an international climate-change panel than its peers, which the company said contributed to a higher emissions figure for last year. Still, the company acknowledges that pumping oil and gas today generates more emissions than in the past.

"It's a disturbing trend," said Sister Patricia Daly, executive director of the Tri-State Coalition for Responsible Investment, a network of investors focused on social and environmental issues. The rise in emissions reinforces the need for targets on reducing carbon, she said. The coalition has filed proposals on behalf of Exxon shareholders asking the company to set targets for curbing greenhouse-gas emissions. The latest proposal, in June, received support from 22% of the shareholder vote.

Shell attributed its emissions increase to producing oil and gas that requires more energy to access, as well to lower production in Nigeria because of theft. Shell in its report projected that its direct emissions would rise in coming years "as our business grows and production becomes more energy intensive."

The company said it takes reducing greenhouse-gas emissions seriously. It cited a Canadian project that will capture a million tons of carbon beginning next year, a large biofuels portfolio and investments in fuels such as natural gas.

Other major Western oil companies have avoided big increases in carbon emissions. BP PLC's emissions from production decreased 0.6% between 2011 and 2013. The company's oil and gas output has fallen sharply since 2010 after selling operations in the wake of Gulf of Mexico oil spill, and its emissions have fallen by a similar degree. BP didn't respond to a request for comment.

Chevron Corp. generated 4% less emissions per barrel last year than in 2011. It is alone among its peers in setting a goal for carbon emissions this year: 1.75% higher than last year. The company cited new facilities that are expected to go online and the resumption of operations at facilities that had been idled.

"Chevron recognizes and shares the concerns of governments and the public about climate change," a spokesman said.

Exxon's global operations generated the equivalent of 148 million metric tons of carbon last year. The figure combines the carbon Exxon emits directly from its own sources, as well as indirectly by consuming energy generated by others. The total rose slightly from 2012 because of emissions from chemical manufacturing and a methodology change, even though emissions from refining fell.

Nearly half of Exxon's emissions comes from tapping oil and gas, which accounts for 90% of the company's earnings. Though production fell 6.1% between 2011 and 2013, total emissions from pumping increased 3.7%.

Exxon noted the higher emissions from oil and gas production in a report earlier this year and said the performance was undesirable. The company in recent years has moved to address the risks of climate change, cutting back on burning natural gas that is unprofitable to capture and eliminating steps in processing heavy crude in Canada.

Shell also has added significant reserves in Canada's oil sands. The company said it invested in equipment to conserve heat generated from its Carmon Creek oil-sands project, which helped keep emissions in check. The company decided against a plan to capture and store carbon underground. The scale of investment wouldn't have been economic, Shell said.

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Credit: By Daniel Gilbert

Subject: Emissions; Natural gas; Petroleum industry; Environmental protection; Greenhouse effect

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 9190: United States; 8510: Petroleum industry

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2014

Publication date: Oct 15, 2014

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1611402988

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1611402988?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Oil Search Raises Dividend as LNG Starts to Flow; Company Reaping the Benefits of Papua New Guinea LNG JV With Exxon Mobil

Author: Ross, Kelly

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Oct 2014: n/a.

ProQuest document link

Abstract:

The Australian company has more cash to distribute after its $19 billion liquefied natural gas joint venture in Papua New Guinea with Exxon Mobil Corp. started shipping its first cargoes of the fuel in May.

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SYDNEY--Oil Search Ltd. said it would dramatically increase the size of dividend payments to shareholders after it completed a sweeping strategic review of its business.

The Australian company has more cash to distribute after its $19 billion liquefied natural gas joint venture in Papua New Guinea with Exxon Mobil Corp. started shipping its first cargoes of the fuel in May.

The new dividend policy is for 35-50% of net profits, excluding one-off items, to be returned to shareholders, starting from the second half of the current calendar year. Oil Search had previously only paid a fraction of its earnings as dividends, most recently offering a first-half payout of 2 U.S. cents per share.

"After dividend payments, we will still have substantial funds available to pursue growth opportunities," Peter Botten, Oil Search's long-serving chief executive, said in a statement.

Mr. Botten said those growth opportunities could include expanding the Papua New Guinea LNG project with Exxon, and building a new LNG project fed by the Elk and Antelope discoveries in the country, which Oil Search owns in a joint venture with Total SA and InterOil Corp.

"Having a range of high potential growth projects within Papua New Guinea mitigates the immediate need to expand internationally," Mr. Botten said.

Analysts had speculated Oil Search could also be close to revealing a succession plan for Mr. Botten, who has been in the top job for two decades.

On Thursday, the company said more of its senior managers will now be moved to Papua New Guinea to develop deeper relationships with key stakeholders there and provide more "management depth" to deal with challenges.

"This structural change will augment succession planning and senior management development," Mr. Botten said, without elaborating further.

Credit: By Ross Kelly

Subject: Succession planning; Chief executive officers; LNG; Dividends; Joint ventures

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Oct 22, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1615099616

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1615099616?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Occidental Petroleum's Profit Falls 24%; Drop in Oil Prices From Fracking Augurs Ill as Chevron, Exxon Prepare to Report Earnings

Author: Gilbert, Daniel; Dulaney, Chelsey

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Oct 2014: n/a.

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Abstract:

Occidental Petroleum Corp.'s third-quarter profit fell 24% as oil prices slumped, offering a preview of how other international oil companies will be affected by cheaper crude.

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Occidental Petroleum Corp.'s third-quarter profit fell 24% as oil prices slumped, offering a preview of how other international oil companies will be affected by cheaper crude.

The Houston-based company on Thursday reported a $1.2 billion profit as oil prices fell 9% from a year earlier and expenses rose for tapping oil and natural gas. Crude prices have dropped more steeply in recent months and are likely to mean lower profit for Chevron Corp., Exxon Mobil Corp. and other major oil producers that report earnings next week.

Occidental sold oil for an average of $94.68 a barrel in the third quarter, down 6% from the second quarter. Crude prices have continued to fall since, closing at $82.09 a barrel in the U.S. on Thursday.

But lower energy prices aren't all bad for Occidental, which brings in more than enough cash to pay for operations and ended the quarter with $2.9 billion in cash. As prices strain rivals with weaker balance sheets, Occidental would be in a position to go shopping, the company said.

"We have no intention of acquiring public companies since their current pricing reflects higher oil prices," said Chief Executive Stephen Chazen. A steep decline in oil prices could deflate the stock of some companies with heavy debt and pressure them to sell assets to raise cash.

Mr. Chazen said the company could borrow to make an acquisition. "From our perspective, this is sort of good times," he said.

Hydraulic fracturing has unleashed a surge in U.S. oil production pushing prices lower. But fracking, which cracks open dense shale rock to allow oil and gas to escape, is more expensive than conventional drilling. That means the drop in oil prices is testing the staying power of some of the companies that have produced the glut.

Sanford C. Bernstein this week estimated that about a third of U.S. shale-oil production would be uneconomic at $80 a barrel. U.S. oil prices briefly dipped below that mark last week.

Mr. Chazen's threshold could be lower. Drilling in the U.S. "is not healthy at $70 oil," he said Thursday.

A further slide in oil prices would strain even companies as well-financed as Occidental and its larger rivals. The driller has generated $8.2 billion from operations this year while spending $7.3 billion on capital investment. Occidental needs other sources of funds to pay dividends and buy back shares.

The company may dial back plans to ramp up fracking in the Permian basin of West Texas if oil prices fall much more, Mr. Chazen said.

Occidental is preparing to spin off its California operations into a separate public company by Nov. 30. It also is negotiating to sell a stake in its Middle East holdings and its interest in Plains All American Pipeline LP. Mr. Chazen said most of the proceeds from the deals would go toward repurchasing company shares.

Occidental's third-quarter profit was equivalent to $1.55 a share, shy of analysts' expectations for $1.57 a share.

Oil and gas production increased slightly, to the equivalent of 755,000 barrels day, adjusting for the effects of an asset sale.

Revenue fell 7% to $6 billion.

Though Mr. Chazen said he expected that crude would rebound, he stopped short of making detailed projections. "If I could predict oil prices, I'd be sitting on a beach in Galveston," Texas, instead of running an energy company, he said.

Occidental's shares rose $1.31, or 1.5%, to close at $91.01 Thursday.

Credit: By Daniel Gilbert and Chelsey Dulaney

Subject: Petroleum industry; Financial performance; Corporate profits; Natural gas; Crude oil prices; Petroleum production; Hydraulic fracturing

Location: California United States--US

Company / organization: Name: Chevron Corp; NAICS: 324110, 211111; Name: Occidental Petroleum Corp; NAICS: 324110, 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Oct 23, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1615240679

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1615240679?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Venezuela Asks For Revision of Exxon Arbitration Award; Enforcement of Award Temporarily On Hold, World Bank Says

Author: Vyas, Kejal

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Oct 2014: n/a.

ProQuest document link

Abstract: None available.

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CARACAS--Venezuela has applied for a revision to the $1.6 billion award that an international arbitration panel earlier this month ordered it to pay Exxon Mobil Corp. for oil assets expropriated in 2007.

Enforcement of the award has been temporarily put on hold, the World Bank's International Center for Settlement of Investment Disputes said in a brief statement on its website.

Venezuela's Foreign Minister Rafael Ramirez, who previously served as the country's longtime oil czar, celebrated the ICSID court's Oct. 9 verdict in the arbitration case as a triumph for the government. The ruling awarded Exxon about a 10th of what it had initially demanded in compensation for the takeover of its Cerro Negro heavy oil project.

After discounting payments made by Venezuela to Exxon for a separate but related case, the country is expected to pay around $1 billion, analysts say.

Spokesmen at Exxon and Venezuela's state energy giant Petróleos de Venezuela SA, or PdVSA, weren't immediately available for comment.

The Exxon case is one of the largest of more than two dozen claims against the South American nation at the ICSID court for companies demanding compensation for assets seized during a nationalization campaign that was championed by the late socialist President Hugo Chávez. The leader took over scores of companies to secure greater control over key economic sectors, especially its vital oil industry.

Venezuela President Nicolás Maduro ordered advisers to negotiate payment terms with Exxon, Finance Minister Rodolfo Marco said in an interview Sunday with local newspaper El Universal. The minister said the government would meet the determined payment schedule.

Though the $1.6 billion award was seen as a victory by the Venezuelan government, it comes at a difficult time as the country faces a dollar crunch and severe economic woes including the highest inflation in the region and chronic shortages of some food and basic goods. The outlook has only become more troubling with the recent and dramatic drop in the price of oil, the commodity that accounts for 96% of Venezuela's exports.

"The government will likely look to annul ICSID rulings as a delay tactic given its severe liquidity constraints," the risk consultancy Eurasia Group said Monday, adding that "annulment proceedings could take as long as two to three years."

Credit: By Kejal Vyas

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Oct 27, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1616659465

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1616659465?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Dow Ekes Out a Win, but S&P Can't Match --- Coming Off a Big Week and Ahead of Fed News, Investors Stand Mostly in Place; Oil's Slide Pulls Down Exxon Mobil

Author: Strumpf, Dan

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]28 Oct 2014: C.6.

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Abstract:

Stocks took a breather Monday after last week's big rally, with major stock indexes finishing little changed as investors await this week's decision on monetary policy from the Federal Reserve and sift through a flood of earnings reports.

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Stocks took a breather Monday after last week's big rally, with major stock indexes finishing little changed as investors await this week's decision on monetary policy from the Federal Reserve and sift through a flood of earnings reports.

The Dow Jones Industrial Average added 12.53 points, or 0.1%, to 16817.94. The S&P 500 index shed 2.95 points, or 0.2%, to 1961.63. The Nasdaq Composite Index gained 2.22, or less than 0.1%, to 4485.93.

U.S. shares began the day with a loss, tracing a slide in European stocks, before recovering much of their declines. Monday's pause comes on the heels of a strong week for stocks. The S&P 500 jumped 4.1% last week, marking its largest weekly percentage gain since January 2013. The Nasdaq Composite increased 5.3%, the biggest weekly percentage gain since December 2011.

But on Monday, traders said activity was subdued, with many investors holding off on placing big trades ahead of high-profile news due over the course of the week. Among the items on the docket will be the Fed's policy decision Wednesday, data on third-quarter gross-domestic-product growth Thursday and a litany of third-quarter earnings reports. This week, 158 companies in the S&P 500 were due to report third-quarter results, according to FactSet.

"This week is starting similar to other weeks, which is, 'Hey, let's wait for the [macroeconomic] data points and the earnings to roll in,'" said Brian Fenske, head of sales trading at brokerage ITG.

Much of the action surrounded energy shares, traders said, which posted big declines amid an early-session selloff in crude oil. Crude futures fell as much as 1.9% intraday before reversing most of those losses. The December Nymex contract settled lower by a penny, at $81 a barrel. The S&P 500 energy sector shed 2%. Shares of Dow component Exxon Mobil fell 78 cents, or 0.8%, to $93.71.

Michael Antonelli, sales trader at Robert W. Baird, said investors are struggling with the implications of the recent slide in oil. While lower crude prices generally benefit consumers and companies that consume large amounts of fuel, the retreat has been accompanied by signs of weaker economic growth globally and worries about low inflation levels. "Everybody is watching crude for some sort of clue," he said.

Despite recent wide swings in stocks, long-term investors remain largely optimistic on U.S. stocks for the rest of the year, citing improving earnings and steady economic growth.

To date, 213 companies in the S&P 500 have reported third-quarter earnings, and the index is on track for 5.6% earnings growth from a year ago, according to FactSet. That is higher than the 4.5% earnings growth expected before the reporting season began.

"The U.S. is the place to be right now," said Mike Serio, regional chief investment officer at Wells Fargo Private Bank, which manages $179 billion. "We're seeing money continue to come into the U.S., continue to go into our stock market and continue to go into our bonds." He said the bank is keeping client portfolios focused on U.S. companies, particularly those likely to benefit from an expanding economy, like industrial and information-technology firms.

European shares finished lower, despite news the European Central Bank's stress tests showed that all but 13 of the region's leading banks have enough capital to survive another period of economic turbulence.

The yield on the 10-year Treasury note fell to 2.257%. Yields fall as prices rise. Gold futures lost 0.2% to $1,229.10 an ounce.

In earnings news, Merck reported earnings that beat analysts' expectations, but revenue fell short. The pharmaceutical giant tightened its earnings outlook for the year by three cents on each end, and is now expecting $3.46 to $3.50 a share. Shares fell 1.16, or 2%, to 56.45.

Asian shares were mixed early Tuesday. Japan's Nikkei was up 0.2%, Hong Kong's Hang Seng index was up 0.4%, the Shanghai composite was up 0.5%, but Australia's S&P/ASX 200 was down 0.4% and South Korea's Kospi was down 0.2%.

Credit: By Dan Strumpf

Subject: Dow Jones averages; Stock prices; Daily markets (wsj)

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 3400: Investment analysis & personal finance; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: C.6

Publication year: 2014

Publication date: Oct 28, 2014

column: Monday's Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1617022992

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1617022992?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Scary Halloween for Exxon, Chevron; Even After Crude Price Drop, More Trouble Awaits Oil Majors

Author: Jakab, Spencer

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Oct 2014: n/a.

ProQuest document link

Abstract:

[...]recently, that had weighed on Exxon due to a glutted natural-gas market.

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It is fitting that oil majors Exxon Mobil Corp. and Chevron Corp. are releasing third-quarter results on Halloween.

Energy investors are downright spooked by the rapid drop in crude prices in the past several weeks. While the immediate blow to those companies' bottom lines may be glancing, next year looks scary at today's prices. Reflecting that, Exxon and Chevron have trailed the S&P 500 by 10% and 13%, respectively, in the past three months.

Analysts see Exxon earning $1.73 a share, down from $1.79 a year ago, in large part due to sagging production. The loss of a concession in the United Arab Emirates compounded those woes. Output in the second quarter fell by 5.7% year over year. Chevron's earnings are seen increasing slightly to $2.62 a share from $2.57 last year.

Expectations for 2015 have been dropping steadily for both. Compared with projections last August, analyst forecasts for Exxon's earnings for next year are 16% lower today. Forecasts for Chevron's are down 22%.

The reason for the difference may be that Exxon is less "oily" these days. That is particularly so following its mammoth deal for North American gas producer XTO Energy Inc., announced in December 2009. Until recently, that had weighed on Exxon due to a glutted natural-gas market.

Even if crude prices stabilize at today's levels, earnings expectations for both companies are likely to continue drifting lower as brokers fully reflect those prices in 2015 forecasts.

The sensitivity of either company's cash flow to a fall in oil prices from $100 to $85 depends on a host of factors peculiar to their individual businesses. But history shows the impact can be drastic: In 2009, when prices dropped much more sharply and a global recession was under way, Exxon's operating cash flow dropped by $31 billion and Chevron's fell by $27 billion.

Back then, each company was able to maintain dividends and even planned capital expenditures, but both slashed share buybacks. Those have since recovered with Exxon and Chevron reducing their share counts by more than 14% and 5%, respectively, since 2010. In Exxon's case, that has helped mitigate the sting of weak production by boosting per-share output and earnings.

Without that trick, there will be fewer goodies with which to treat investors.

Email:

Credit: By Spencer Jakab

Subject: Petroleum industry; Earnings; Investments

Location: United Arab Emirates

Company / organization: Name: XTO Energy Inc; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Oct 30, 2014

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest documentID: 1618215028

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1618215028?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon, Chevron Post Higher Earnings Despite Drops in Production; Improvements at Refining Businesses Help Offset Lower Production, Exploration Results

Author: Dulaney, Chelsey; Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 Oct 2014: n/a.

ProQuest document link

Abstract:

Profit at Exxon Mobil Corp. and Chevron Corp. rose last quarter despite sharply lower crude prices, boosted by strength in oil refining businesses that have fallen out of favor at some smaller rivals.

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Profit at Exxon Mobil Corp. and Chevron Corp. rose last quarter despite sharply lower crude prices, boosted by strength in oil refining businesses that have fallen out of favor at some smaller rivals.

The nation's first- and second-largest energy companies explore for and produce crude oil and natural gas, refining the liquids into fuels like gasoline and diesel. In contrast, companies including Marathon Oil Corp. and ConocoPhillips spun off their refining arms in recent years to focus on production businesses.

Refining, which benefits from cheaper crude, has helped fortify Exxon and Chevron against oil price swings that have cut into profits from tapping oil and gas.

"Exxon Mobil's financial results reflect the strength of the integrated business model," said Jeff Woodbury, vice president of investor relations.

Exxon's profit from refining jumped 73% in its third quarter, helping drive a 2.5% increase in its total profit, while Chevron's refinery earnings more than tripled, propelling a 13% jump in overall profit.

Exxon's output fell 4.7% on an oil-equivalent basis, while Chevron's dropped 0.8%. That led to a 4.4% profit decline at Exxon's energy producing operation and an 8.7% drop at Chevron.

Chevron said its average U.S. price for crude oil and natural gas liquids fell by $10 a barrel to $87 a barrel in the quarter, while prices fell internationally to $93 a barrel from $104. Exxon said it sold U.S. oil for $89.60 in the third quarter, down 12% from a year ago, while international barrels fetched $96.76, or 9.3% less.

Oil prices have tumbled globally in recent months, falling by about 25% since June, amid concerns about growing supply and tepid demand.

Exxon's slumping production in part reflects a willingness to give up some less-profitable barrels, such as at a concession in Abu Dhabi that expired in the past year. Such steps have helped Exxon close Chevron's lead in squeezing the most profit from its barrels of oil and gas. Exxon Chief Executive Rex Tillerson has made improving profitability one of the company's highest priorities.

A majority of Chevron's production consists of oil and liquid fuels, making it more exposed to crude prices than peers with output more evenly balanced between oil and gas.

Both companies have pointed to opportunities to boost future production. Exxon is pumping oil and gas from a few major projects, including an oil sands venture in Canada that started up last year and a gas-export project in Papua New Guinea that shipped its first cargoes in the second quarter.

But its efforts to drill in Russia's Arctic seas--its biggest opportunity to discover untapped deposits of oil and gas--have stalled. Exxon recently stopped drilling in Russia's Arctic waters because of U.S. sanctions.

Chevron executives pointed to projects in Bangladesh, Australia and the Gulf of Mexico as potential boosts for future production.

"Of course we are cognizant of near-term price realities," Patricia Yarrington, Chevron's chief financial officer, told analysts on Friday. Major projects, from multibillion-dollar initiatives in Australia to the Gulf of Mexico, account for half of the company's capital budget. "Even at low prices we plan to continue funding these projects," she said.

In all, Exxon reported a profit of $8.07 billion, or $1.89 a share. Revenue slipped 4.3% to $107.5 billion. Analysts polled by Thomson Reuters expected a per-share profit of $1.71 and revenue of $105.51 billion.

At Chevron, earnings rose to $5.59 billion, or $2.95 a share, helped by asset sales and foreign currency changes. Revenue fell 6.5% to $54.7 billion. Wall Street called for $2.55 a share in earnings and $58.18 billion in revenue.

Exxon bought back $3 billion of stock in the quarter, while Chevron repurchased $1.25 billion.

Shares of both Exxon and Chevron jumped Friday amid a record-setting day for the broader market. Exxon shares added 2.39% to $96.71, the second-best performer on the Dow Jones Industrial Average, and Chevron was the third best, rising 2.35% to $119.95.

Credit: By Chelsey Dulaney and Daniel Gilbert

Subject: Petroleum industry; Financial performance; Corporate profits; Profitability; Natural gas; Crude oil prices

Location: United States--US

People: Tillerson, Rex W

Company / organization: Name: ConocoPhillips Co; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Marathon Oil Corp; NAICS: 486110, 324110, 211111, 213112

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Oct 31, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1618831084

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1618831084?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Corporate News: Refining Lifts Net At Exxon, Chevron

Author: Dulaney, Chelsey; Gilbert, Daniel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]01 Nov 2014: B.3.

ProQuest document link

Abstract:

Profit at Exxon Mobil Corp. and Chevron Corp. rose last quarter despite sharply lower crude prices, boosted by strength in oil refining businesses that have fallen out of favor at some smaller rivals.

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Full text:  

Profit at Exxon Mobil Corp. and Chevron Corp. rose last quarter despite sharply lower crude prices, boosted by strength in oil refining businesses that have fallen out of favor at some smaller rivals.

The nation's first- and second-largest energy companies explore for and produce crude oil and natural gas, refining the liquids into fuels like gasoline and diesel. In contrast, companies including Marathon Oil Corp. and ConocoPhillips spun off their refining arms to focus on production businesses.

Refining, which benefits from cheaper crude, has helped fortify Exxon and Chevron against oil price swings that have cut into profits from tapping oil and gas.

Exxon's profit from refining jumped 73% in its third quarter, helping drive a 2.5% increase in its total profit, while Chevron's refinery earnings more than tripled, propelling a 13% jump in overall profit.

Exxon's output fell 4.7% on an oil-equivalent basis, while Chevron's dropped 0.8%. That led to a 4.4% profit decline at Exxon's energy producing operation and an 8.7% drop at Chevron.

Chevron said its average U.S. price for crude oil and natural gas liquids fell by $10 a barrel to $87 a barrel in the quarter, while prices fell internationally to $93 a barrel from $104. Exxon said it sold U.S. oil for $89.60 in the third quarter, down 12% from a year ago, while international barrels fetched $96.76, or 9.3% less.

Oil prices have tumbled globally in recent months, falling by about 25% since June, amid concerns about growing supply and tepid demand.

Exxon's slumping production in part reflects a willingness to give up some less-profitable barrels, such as at a concession in Abu Dhabi that expired in the past year. Such steps have helped Exxon close Chevron's lead in squeezing the most profit from its barrels of oil and gas.

A majority of Chevron's production consists of oil and liquid fuels, making it more exposed to crude prices than peers with output more evenly balanced between oil and gas.

In all, Exxon reported a profit of $8.07 billion, or $1.89 a share. Revenue slipped 4.3% to $107.5 billion.

At Chevron, earnings rose to $5.59 billion, or $2.95 a share, helped by asset sales and foreign currency changes. Revenue fell 6.5% to $54.7 billion.

Credit: By Chelsey Dulaney and Daniel Gilbert

Subject: Profits; Earnings per share; Financial performance; Company reports

Location: United States--US

Company / organization: Name: Chevron Corp; NAICS: 211111, 324110; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 9190: United States; 8510: Petroleum industry; 3100: Capital & debt management

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2014

Publication date: Nov 1, 2014

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1619014006

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1619014006?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Big Oil Feels the Need to Get Smaller; Exxon, Shell, Chevron Pare Back as Rising Production Costs Squeeze Earnings

Author: Gilbert, Daniel; Scheck, Justin

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Nov 2014: n/a.

ProQuest document link

Abstract:

Despite collectively earning $18.9 billion in the third quarter, the three companies--Exxon Mobil Corp., Royal Dutch Shell PLC and Chevron Corp.--are now shelving expansion plans and shedding operations with particularly tight profit margins. [...]Exxon, Shell and Chevron have chased large energy deposits from the oil sands of Western Canada to the frigid Central Asian steppes.

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As crude prices tumble, big oil companies are confronting what once would have been heresy: They need to shrink.

Even before U.S. oil prices began their summer drop toward $80 a barrel, the three biggest Western oil companies had lower profit margins than a decade ago, when they sold oil and gas for half the price, according to a Wall Street Journal analysis.

Despite collectively earning $18.9 billion in the third quarter, the three companies--Exxon Mobil Corp., Royal Dutch Shell PLC and Chevron Corp.--are now shelving expansion plans and shedding operations with particularly tight profit margins.

The reason for the shift lies in the rising cost of extracting oil and gas. Exxon, Chevron, Shell, as well as BP PLC, each make less money tapping fuels than they did 10 years ago. Combined, the four companies averaged a 26% profit margin on their oil and gas sales in the past 12 months, compared with 35% a decade ago, according to the analysis.

Shell last week reported that its oil-and-gas production was lower than it was a decade ago and warned it is likely to keep falling for the next two years. Exxon's output sank to a five-year low after the company disposed of less-profitable barrels in the Middle East. U.S.-based Chevron, for which production has been flat for the past year, is delaying major investments because of cost concerns.

BP has pared back the most sharply, selling $40 billion in assets since 2010, largely to pay for legal and cleanup costs stemming from the Deepwater Horizon oil spill in the Gulf of Mexico that year.

To be sure, the companies, at least eventually, aim to pump more oil and gas. Exxon and Chevron last week reaffirmed plans to boost output by 2017.

"If we went back a decade ago, the thought of curtailing spending because crude was $80 a barrel would blow people's minds," said Dan Pickering, co-president of investment bank Tudor, Pickering, Holt & Co. "The inherent profitability of the business has come down."

It isn't only major oil companies that are pulling back. Oil companies world-wide have canceled or delayed more than $200 billion in projects since the start of last year, according to an estimate by research firm Sanford C. Bernstein.

In the past, the priority for big oil companies was to find and develop new oil and gas fields as fast as possible, partly to replace exhausted reserves and partly to show investors that the companies still could grow.

But the companies' sheer size has meant that only huge, complex--and expensive--projects are big enough to make a difference to the companies' reserves and revenues.

As a result, Exxon, Shell and Chevron have chased large energy deposits from the oil sands of Western Canada to the frigid Central Asian steppes. They also are drilling to greater depths in the Gulf of Mexico and building plants to liquefy natural gas on a remote Australian island. The three companies shelled out a combined $500 billion between 2009 and last year. They also spend three times more per barrel than smaller rivals that focus on U.S. shale, which is easier to extract.

The production from some of the largest endeavors has yet to materialize. While investment on projects to tap oil and gas rose by 80% from 2007 to 2013 for the six biggest oil companies, according to JBC Energy Markets, their collective oil and gas output fell 6.5%.

Several major ventures are scheduled to begin operations within a year, however, which some analysts have said could improve cash flow and earnings.

For decades, the oil industry relied on what Shell Chief Financial Officer Simon Henry calls its "colonial past" to gain access to low-cost, high-volume oil reserves in places such as the Middle East. In the 1970s, though, governments began driving harder bargains with companies.

Oil companies still kept trying to produce more oil, however. In the late 1990s, "it would have been unacceptable to say the production will go down," Mr. Henry said.

Oil companies were trying to appease investors by promising to boost production and cut investment.

"We promised everything," Mr. Henry said. Now, "those chickens did come home to roost."

Shell has "about a third of our balance sheet in these assets making a return of 0%," Shell Chief Executive Ben van Beurden said in a recent interview. Shell projects should have a profit margin of at least 10%, he said. "If that means a significantly smaller business, then I'm prepared to do that."

Shell late last year canceled a $20 billion project to convert natural gas to diesel in Louisiana and this year halted a Saudi gas project where the company had spent millions of dollars.

The Anglo-Dutch company also has dialed back on shale drilling in the U.S. and Canada and abandoned its production targets.

U.S.-based Exxon earlier this year allowed a license to expire in Abu Dhabi, where the company had pumped oil for 75 years, and sold a stake in an oil field in southern Iraq because they didn't offer sufficiently high returns.

Exxon is investing "not for the sake of growing volume but for the sake of capturing value," Jeff Woodbury, the head of investor relations, said Friday.

Even Chevron, which said it planned to increase output by 2017, has lowered its projections. The company has postponed plans to develop a large gas field in the U.K. to help bring down costs. The company also recently delayed an offshore drilling project in Indonesia.

The re-evaluation has also come because the companies have been spending more than the cash they bring in. In nine of the past 10 quarters, Exxon, for example, has spent more on dividends, share buybacks and capital and exploration costs than it has generated from operations and by selling assets.

Though refining operations have cushioned the blow of lower oil prices, the companies indicated that they might take on more debt if crude gets even cheaper. U.S. crude closed Friday at $80.54 a barrel.

Chevron finance chief Patricia Yarrington said the company planned to move forward with its marquee projects and is willing to draw on its $14.2 billion in cash to pay dividends and repurchase shares.

"We are not bothered in a temporary sense," she said. "We obviously can't do that for a long period of time."

Credit: Daniel Gilbert, Justin Scheck

Subject: Oil reserves; Petroleum industry; Energy economics; Profitability; Natural gas; Profit margins; Energy industry; Natural gas reserves

Location: United States--US Middle East

Company / organization: Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Tudor Pickering Holt & Co LLC; NAICS: 523110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Nov 2, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1619291173

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1619291173?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Big Oil Feels Need to Shrink --- Exxon, Shell, Chevron Pare Back as Rising Production Costs Squeeze Earnings

Author: Gilbert, Daniel; Scheck, Justin

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]03 Nov 2014: A.1.

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Abstract:

Exxon Mobil Corp., Royal Dutch Shell PLC and Chevron Corp. -- are now shelving expansion plans and shedding operations with particularly tight profit margins. [...]Exxon, Shell and Chevron have chased large energy deposits from the oil sands of Western Canada to the frigid Central Asian steppes.

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As crude prices tumble, big oil companies are confronting what once would have been heresy: They need to shrink.

Even before U.S. oil prices began their summer drop toward $80 a barrel, the three biggest Western oil companies had lower profit margins than a decade ago, when they sold oil and gas for half the price, according to a Wall Street Journal analysis.

Despite collectively earning $18.9 billion in the third quarter, the three companies -- Exxon Mobil Corp., Royal Dutch Shell PLC and Chevron Corp. -- are now shelving expansion plans and shedding operations with particularly tight profit margins.

The reason for the shift lies in the rising cost of extracting oil and gas. Exxon, Chevron, Shell, as well as BP PLC, each make less money tapping fuels than they did 10 years ago. Combined, the four companies averaged a 26% profit margin on their oil and gas sales in the past 12 months, compared with 35% a decade ago, according to the analysis.

Shell last week reported that its oil-and-gas production was lower than it was a decade ago and warned it is likely to keep falling for the next two years. Exxon's output sank to a five-year low after the company disposed of less-profitable barrels in the Middle East. U.S.-based Chevron, for which production has been flat for the past year, is delaying major investments because of cost concerns.

BP has pared back the most sharply, selling $40 billion in assets since 2010, largely to pay for legal and cleanup costs stemming from the Deepwater Horizon oil spill in the Gulf of Mexico that year.

To be sure, the companies, at least eventually, aim to pump more oil and gas. Exxon and Chevron last week reaffirmed plans to boost output by 2017.

"If we went back a decade ago, the thought of curtailing spending because crude was $80 a barrel would blow people's minds," said Dan Pickering, co-president of investment bank Tudor, Pickering, Holt & Co. "The inherent profitability of the business has come down."

It isn't only major oil companies that are pulling back. Oil companies world-wide have canceled or delayed more than $200 billion in projects since the start of last year, according to an estimate by research firm Sanford C. Bernstein.

In the past, the priority for big oil companies was to find and develop new oil and gas fields as fast as possible, partly to replace exhausted reserves and partly to show investors that the companies still could grow.

But the companies' sheer size has meant that only huge, complex -- and expensive -- projects are big enough to make a difference to the companies' reserves and revenues.

As a result, Exxon, Shell and Chevron have chased large energy deposits from the oil sands of Western Canada to the frigid Central Asian steppes. They also are drilling to greater depths in the Gulf of Mexico and building plants to liquefy natural gas on a remote Australian island. The three companies shelled out a combined $500 billion between 2009 and last year. They also spend three times more per barrel than smaller rivals that focus on U.S. shale, which is easier to extract.

The production from some of the largest endeavors has yet to materialize. While investment on projects to tap oil and gas rose by 80% from 2007 to 2013 for the six biggest oil companies, according to JBC Energy Markets, their collective oil and gas output fell 6.5%.

Several major ventures are scheduled to begin operations within a year, however, which some analysts have said could improve cash flow and earnings.

For decades, the oil industry relied on what Shell Chief Financial Officer Simon Henry calls its "colonial past" to gain access to low-cost, high-volume oil reserves in places such as the Middle East. In the 1970s, though, governments began driving harder bargains with companies.

Oil companies still kept trying to produce more oil, however. In the late 1990s, "it would have been unacceptable to say the production will go down," Mr. Henry said.

Oil companies were trying to appease investors by promising to boost production and cut investment.

"We promised everything," Mr. Henry said. Now, "those chickens did come home to roost."

Shell has "about a third of our balance sheet in these assets making a return of 0%," Shell Chief Executive Ben van Beurden said in a recent interview. Shell projects should have a profit margin of at least 10%, he said. "If that means a significantly smaller business, then I'm prepared to do that."

Shell late last year canceled a $20 billion project to convert natural gas to diesel in Louisiana and this year halted a Saudi gas project where the company had spent millions of dollars.

The Anglo-Dutch company also has dialed back on shale drilling in the U.S. and Canada and abandoned its production targets.

U.S.-based Exxon earlier this year allowed a license to expire in Abu Dhabi, where the company had pumped oil for 75 years, and sold a stake in an oil field in southern Iraq because they didn't offer sufficiently high returns.

Exxon is investing "not for the sake of growing volume but for the sake of capturing value," Jeff Woodbury, the head of investor relations, said Friday.

Even Chevron, which said it planned to increase output by 2017, has lowered its projections. The company has postponed plans to develop a large gas field in the U.K. to help bring down costs. The company also recently delayed an offshore drilling project in Indonesia.

The re-evaluation has also come because the companies have been spending more than the cash they bring in. In nine of the past 10 quarters, Exxon, for example, has spent more on dividends, share buybacks and capital and exploration costs than it has generated from operations and by selling assets.

Though refining operations have cushioned the blow of lower oil prices, the companies indicated that they might take on more debt if crude gets even cheaper. U.S. crude closed Friday at $80.54 a barrel.

Chevron finance chief Patricia Yarrington said the company planned to move forward with its marquee projects and is willing to draw on its $14.2 billion in cash to pay dividends and repurchase shares.

"We are not bothered in a temporary sense," she said. "We obviously can't do that for a long period of time."

Credit: Daniel Gilbert, Justin Scheck

Subject: Natural gas reserves; Energy economics; Petroleum production; Crude oil

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Chevron Corp; NAICS: 211111, 324110; Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110

Classification: 8510: Petroleum industry; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.1

Publication year: 2014

Publication date: Nov 3, 2014

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1619280271

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1619280271?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Advisory Firm Ordered to Pay Exxon Retirees $3.8M

Author: Rieker, Matthias

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Nov 2014: n/a.

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Abstract:

An arbitration panel ordered a Texas advisory firm to pay a group of 19 retired Exxon Mobil Corp. employees a total of $3.8 million for losses from an alleged failed investment strategy designed to protect them from stock-market downturns.

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An arbitration panel ordered a Texas advisory firm to pay a group of 19 retired Exxon Mobil Corp. employees a total of $3.8 million for losses from an alleged failed investment strategy designed to protect them from stock-market downturns.

The retirees invested nearly $40 million with U.S. Capital Advisors LLC of Houston, and contended that they could have made $3 million from the strategy as it was described to them by advisers with the firm. Instead, they lost $1.25 million, according to their arbitration claim with the Financial Industry Regulatory Authority.

The panel awarded them a combined $1.9 million in damages plus interest, along with $852,630 in punitive damages and almost $1 million in legal and other costs, according to the award posted on Finra's website. Individually, the damage awards ranged from $28,294 to $195,949.

Finra arbitrators usually don't explain the reasoning for their decisions but in this case they did, saying they found "egregious, recurrent, and willful violations of a fiduciary relationship" between U.S. Capital Advisors and the investors.

Many of the claimants put money into the strategy at the recommendation of a group of advisers who targeted Exxon Mobil employees nearing retirement with investment seminars. The advisers originally worked for UBS AG, and the clients stayed with them when they left that firm to join newly created U.S. Capital Advisers in 2010.

The "total return" strategy, the investors were told, would hold mainly U.S. stocks and exchange-traded funds in a rising market and move the money into cash when markets fell, with trades triggered by "objective technical indicators," according to the claim. But when the advisers left UBS, their new firm was "understaffed" and "ill-equipped to execute" the strategy, and they strayed from the model, the claim said.

Asked for comment on the award, Patrick Mendenhall, the chief executive of U.S. Capital Advisors, defended his firm. He said the client's claim focused only on the losses from the total return strategy but ignored gains from other investments.

"We are clearly disappointed with the award; we certainly don't understand it," he said.

Thomas Fulkerson, a Houston lawyer who represented the retirees with his partner, Wesley Lotz, said financial advisers can't argue that advisers who make money in one client accounts would have immunity for the losses in other accounts. He said the panel asked for a specific briefing about the argument.

"We are gratified" by the award, he said.

Credit: By Matthias Rieker

Subject: Owner operator; Advisors; Investments

Location: Texas United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Financial Industry Regulatory Authority Inc; NAICS: 926150; Name: UBS AG; NAICS: 522110, 523110, 523120, 523920, 523930

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Nov 20, 2014

Section: Wealth Management Journal

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1626366854

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1626366854?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Oil Boom Returns to U.S. Gulf After Deepwater Horizon Disaster; Exxon, Shell--Even BP--Push Ahead With Giant Offshore Projects

Author: Gilbert, Daniel; Harder, Amy; Scheck, Justin

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Nov 2014: n/a.

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Abstract:

The new projects here, from such companies as Hess Corp., Exxon Mobil Corp. and Chevron Corp., have the combined capacity to pump about 900,000 barrels a day--more than the oil and gas output of California.

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ABOARD THE OLYMPUS PLATFORM, Gulf of Mexico--Four years after the Deepwater Horizon disaster, giant new oil projects are returning to the Gulf--bigger and more expensive than ever.

This platform, owned by Royal Dutch Shell PLC, is a floating hive of human activity, 130 miles off the Louisiana coast. Larger than a New York City block and weighing more than an aircraft carrier, Olympus is among roughly a dozen new multibillion-dollar platforms that are or will be pumping oil in the deep waters of the Gulf by the end of next year.

The resurgence could be short-lived if the decline in crude-oil prices, down about 30% since June, continues and prompts companies to delay substantial investments in the Gulf.

For the near term, though, the activity promises to return the Gulf to prominence as a major source of U.S. energy. In 2001, the waters produced about a quarter of all American oil and gas. Since then, production has fallen by half as wells petered out and the government issued fewer permits in the aftermath of the 2010 Deepwater Horizon explosion and oil spill. Last year, the Gulf accounted for less than 10% of the country's energy production, in part because of soaring output from wells drilled in onshore shale formations.

The new projects here, from such companies as Hess Corp., Exxon Mobil Corp. and Chevron Corp., have the combined capacity to pump about 900,000 barrels a day--more than the oil and gas output of California. And that doesn't include supplies from two projects led by BP PLC, which declined to provide details on output.

Costs here have been jumping, in part because companies are drilling farther from shore and in deeper waters. Deep-water wells are up to 25% more expensive today than in 2010, according to Shell and Chevron, and can cost $300 million each. New regulations have prompted companies to add safety features such as an extra stack of valves designed to stop an out-of-control well. The failure of such a device was a cause of the Deepwater Horizon disaster.

Drilling the average deep-water well takes 13% longer than it did before the 2010 disaster, according to research firm Kessler Energy LLC, partly because rigs are idle longer for inspections and maintenance. Offshore drillers also must compete for skilled hands who can find jobs closer to home in shale fields, where the workers don't have to spend weeks away from their families.

"There are fewer projects moving forward as a result, or they're moving more slowly than they otherwise would," Robert Kessler, the research firm's chief executive, says regarding higher costs.

So while new projects under way will push energy production in the Gulf's deep waters to a record 1.9 million barrels a day in 2016, analysts at Wood Mackenzie forecast, growth is likely to stall afterward because of high costs and technological limitations.

"The current slide in oil prices does not help the long-term outlook, either, especially if the downward trend continues for a prolonged period," says Imran Khan, an analyst at the energy research firm.

Executives say that there will be great demand for fuels pumped from oil fields off the coasts of Louisiana and Texas. Costs aside, "the projects are robust, even under these conditions," John Hollowell, a Shell executive vice president, says aboard the Olympus platform.

Hess said Monday that it had started pumping crude from its deep-water Tubular Bells installation about 135 miles southeast of New Orleans. Exxon Mobil and Anadarko Petroleum Corp. plan to start up two more major Gulf projects in the coming months. Hess, Chevron and other partners recently gave the green light for a $6 billion development in the Gulf, even though U.S. oil prices are below $80 a barrel at a four-year low.

Even BP has returned to making big offshore bets. The company, which pleaded guilty to criminal charges and has taken a $43 billion hit related to the Deepwater Horizon explosion and oil spill, is developing technology to drill at greater depths. It said last year that it planned to spend $4 billion a year in the Gulf for the next decade and said recently that it was continuing its "multibillion-dollar investment program."

For big energy companies, exploring the Gulf's waters is attractive compared with other parts of the world. Many petroleum-rich nations from the Middle East to Latin America limit the amount of profit that energy companies can make. Deep-water wells are also more prolific than shale wells, making it easier for the biggest companies to sustain their output.

Unlike many projects that Shell and other oil companies have developed in recent years, the Olympus platform came online ahead of schedule and under budget. It began tapping oil and gas in February. The company decided to build Olympus in 2010, just months after the Deepwater Horizon exploded, as a way to get more oil and gas from a field that the company had pumped for decades.

To bring down costs for the project, Shell used components made from polyethylene, a corrosion-resistant material that is less expensive than what Shell had used, according to RMB Products Inc., which made the new parts.

Today Olympus sits in 3,000 feet of water and can process up to 100,000 barrels a day of oil, or roughly 3% of Shell's current global production.

Now Shell is aiming for an even more remote prize. The company is working on a new Gulf project that will tap an oil field under 9,500 feet of water--three times deeper than Olympus.

Write to Daniel Gilbert at , Amy Harder at and Justin Scheck at

Credit: By Daniel Gilbert, Amy Harder and Justin Scheck

Subject: Oil spills; Petroleum industry; Energy policy; Costs

Location: New York United States--US California Louisiana

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210

Publication title: Wall Street Jou rnal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Nov 21, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1627152303

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1627152303?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Crystal Ball: What's Ahead for Exxon Mobil Shares? Our Weekly Stock-Prediction Feature Looks at the Energy Giant

Author: Anonymous

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Nov 2014: n/a.

ProQuest document link

Abstract: None available.

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Send your prediction to crystalball@wsj.com by midnight EST Sunday, with your full name, city, state and phone number. The first reader who gets it right will be named in next Saturday's paper.

Energy stocks plunged after the Organization of the Petroleum Exporting Countries on Thursday rejected calls to lower its oil output. Exxon Mobil shares fell 4.2% on Friday. What will the company's closing share price be on Monday?

Congratulations to Martin Lowe of Jacksonville, Fla., who came closest to guessing Tiffany's closing price of $107.60 this past Tuesday.

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Nov 28, 2014

Section: Personal Finance

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1628571192

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1628571192?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Imperial Oil Restarts Production at Kearl Oil Sands Mine; Exxon Subsidiary Says Mine's Production at 'Pre-Shutdown Levels'

Author: Dawson, Chester

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Dec 2014: n/a.

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CALGARY, Alberta--Exxon Mobil Corp.'s Canadian subsidiary on Tuesday said it has resumed production at one of its largest oil sands mines "to pre-shutdown levels" after it halted operations in November due to a mechanical problem.

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CALGARY, Alberta--Exxon Mobil Corp.'s Canadian subsidiary on Tuesday said it has resumed production at one of its largest oil sands mines "to pre-shutdown levels" after it halted operations in November due to a mechanical problem.

Imperial Oil Ltd. suspended production three weeks ago after detecting a vibration issue in the mine's core ore-crushing machinery used to extract heavy oil. That forced it to forgo output, which had averaged 92,000 barrels of crude a day in the third quarter excluding a 14-day maintenance window.

"Repairs to the crusher unit have been completed," and the company is still looking into the cause of the equipment malfunction, Imperial spokesman Pius Rolheiser said.

The Kearl plant cost 13 billion Canadian dollars ($11.4 billion) and started production in April 2013 after a series of delays and cost overruns. Construction of an C$8.9 billion expansion to produce an additional 110,000 barrels a day beginning in 2015 was 97% complete as of Sept. 30, according to the company.

Located about 43 miles north of Fort McMurray in northern Alberta, it is expected to produce up to 345,000 barrels a day at full capacity by 2020. The mine's plant features state-of-the-art technology such as a new process to increase the efficiency of extracting heavy oil embedded in sand.

Exxon considers Kearl a jewel in its oil sands assets as it amounts to about half of Imperial's 3.6 billion oil equivalent barrels of proved reserves. Ultimately, it hopes to extract up to 4.6 billion barrels of oil at Kearl over the next 40 years.

Write to Chester Dawson at

Credit: By Chester Dawson

Subject: Petroleum industry; Oil sands; Oil reserves

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Imperial Oil Ltd; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Dec 3, 2014

Section: News

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1629462189

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1629462189?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Dow Hits Record as Energy Stocks Bounce --- Chevron, Exxon Mobil Lead Blue Chips Higher as Investors Reverse Bearish Bets and Chase Bargains After Sector's Tumble

Author: Scaggs, Alexandra

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]03 Dec 2014: C.10.

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Abstract:

The Dow Jones Industrial Average climbed to a record as investors drove up shares of big energy companies seen capable of weathering the significant decline in oil prices.

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The Dow Jones Industrial Average climbed to a record as investors drove up shares of big energy companies seen capable of weathering the significant decline in oil prices.

The Dow gained 102.75 points, or 0.6%, to 17879.55, hitting its 32nd record high this year. Chevron and Exxon Mobil were the best performers among the blue chips, contributing a total of 27 points to the advance. Chevron gained $2.29, or 2.1%, to $114.02. Exxon rose 1.84, or 2%, to 94.19.

The S&P 500 index gained 13.11 points, or 0.6%, to 2066.55, closing 0.3% below its record. The Nasdaq Composite Index rose 28.46 points, or 0.6%, to 4755.81.

Energy stocks were the best-performing sector in the S&P 500, gaining 1.3% despite a renewed fall in energy prices.

Crude-oil futures fell 3.1% to $66.88 a barrel, while Brent crude, the global benchmark, fell 2.8% to $70.54 a barrel.

Traders said the bounce in energy stocks came as some investors bought shares to reverse bearish bets.

Other investors hunted among beaten-down names, focusing on companies with broad business lines and healthier balance sheets. Even with Tuesday's uptick, energy stocks in the S&P are down 7% over the past month.

"A lot of people are wondering whether it is a buying opportunity," Brian Fenske, head of sales trading at New York-based brokerage firm ITG. "You have to be cautious about it, but [the rise] is good to see."

Small-cap energy companies in the S&P 600, many of which have less-diversified businesses and more debt, fell 0.4%. They have lost 23% over the past month.

European energy stocks also rose, fueling a 0.5% advance in the Stoxx Europe 600.

Falling oil and gasoline prices are seen by many analysts as boosting corporate earnings by lowering costs and allowing for more disposable income among consumers.

But some investors are concerned that falling oil prices could lead to slower investment and growth in the energy industry, which has been an important engine of growth for the broader economy.

Patrick Kaser, who manages more than $6 billion of large-cap stocks for Brandywine Global Investment Management, still thinks the drop in oil will be good for U.S. stocks. But he will be watching for signs that energy companies are laying off workers.

"In theory, everybody agrees that lower gas prices are good . . . and I think that [idea] wins out," Mr. Kaser said. "But it's not as open-and-shut as it was when we were producing less oil."

Consumer-discretionary stocks in the S&P 500 gained 0.4%, but still lagged behind the broader market. They fell 1.1% Monday, after news of disappointing sales over the Black Friday weekend, the unofficial kickoff of the holiday shopping season. Retailer Coach Inc. was the biggest decliner in the group, falling 91 cents, or 2.5%, to 35.19.

Treasury prices fell, pushing up the yield on the 10-year note to 2.285%.

Gold futures declined 1.5% to settle at $1,199.20 an ounce.

In corporate news, Avanir Pharmaceuticals Inc. jumped 1.92, or 12.8%, to 16.92 after agreeing to be purchased by Japanese drug maker Otsuka Pharmaceutical Co. for $17 a share. The deal values California-based Avanir at $3.5 billion and is expected to close in the first quarter of 2015.

In other deal news, Cypress Semiconductor agreed to buy memory-chip maker Spansion. Spansion shares soared 5.01, or 21.9%, to 27.86.

Overseas early Wednesday, the Shanghai Composite Index was up 1.5% after after a measure of Chinese nonmanufacturing activity improved. The Shanghai benchmark has had a nearly uninterrupted string of 1% plus daily gains since Nov. 21, when China's central bank announced a surprise rate cut. Japan's Nikkei Stock Average was up 1.1%, while Australia's S&P/ASX 200 was up 0.4%.

Credit: By Alexandra Scaggs

Subject: Stock prices; Dow Jones averages; Daily markets (wsj)

Company / organization: Name: Coach Inc; NAICS: 316992, 316998; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Chevron Corp; NAICS: 211111, 324110

Classification: 3400: Investment analysis & personal finance; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: C.10

Publication year: 2014

Publication date: Dec 3, 2014

column: Tuesday's Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1629511009

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Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon and M&A: The Crude AbidesExxon and M&A: The Crude Abides; Climate Improves for Exploration-and-Production Acquisitions

Author: Denning, Liam

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Dec 2014: n/a.

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Abstract:

Even as their colleagues on the trading floor wail, investment bankers can smile at falling oil prices.

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Even as their colleagues on the trading floor wail, investment bankers can smile at falling oil prices.

Cheaper oil means pain for exploration-and-production companies--and the rising possibility that they seek sanctuary in each other's arms. Rumors of potential deals involving big companies such as Exxon Mobil and the U.K.'s BG Group are swirling.

Yet while some deals may make sense, recent history means they will be cautious on placing that call to their banker. Mergers and acquisitions likely will become a bigger theme later in 2015.

That isn't to deny that the conditions for M&A are falling into place. Witness oil-field-services giants Halliburton and Baker Hughes attempting a deal. In the past three months, oil has fallen by about 30% and E&P stocks have dropped 36%. Yet Exxon's shares have lost less than 5% of their value.

In terms of its average multiple of enterprise value to forward earnings before interest, taxes, depreciation and amortization, the E&P sector now trades at roughly a 30% discount to Exxon, according to FactSet. That compares with an average premium of 8% and a maximum of almost 50% since 2007. Take BG, touted perennially as a takeover candidate: It now trades at a slight discount to Exxon versus an average premium of 34%.

On paper, BG looks a likely candidate. It has world-class assets, notably in Brazil and its liquefied natural-gas business. But these are housed in a company suffering from executive turmoil, high sensitivity to oil prices and doubts about key projects being delivered on time. At current prices, Exxon could offer a 30% premium, funded 75% with its own stock, and, based on consensus estimates, this would be accretive to 2016 earnings by more than 20%, before synergies.

Beware earnings forecasts when oil is sliding, though. And earnings accretion doesn't drive Exxon's M&A strategy anyway. When it bought XTO Energy in 2010, it said upfront it could be dilutive.

That earlier deal is illustrative in another way, too. As Doug Terreson of Evercore ISI points out, what counts for Exxon is return on capital employed. XTO's was much lower, helping to cut Exxon's annual return to 18% last year from 34% in 2008. Exxon's valuation premium, and some of its reputation as a savvy deal maker, followed. Last year, BG's return on capital was about 10%.

Any potential deal must also compete with Exxon's favorite acquisition target: its own stock. Over the past decade, Exxon has repurchased $220 billion of its shares, roughly equivalent to rival Chevron's current market value. With Exxon's borrowing costs below 5%, cost of equity at about 10%, and its net debt low, buybacks remain a formidable competitor to any deal.

To overcome that, Exxon would need to see deeper, strategic value. With its long-term growth plans in Russia at risk in today's environment, Exxon could use some new, exciting opportunities. BG's Brazilian assets or an E&P company's U.S. shale prospects would fit that bill. With XTO's legacy still apparent, though, selling a strategic deal to investors requires Exxon securing an unambiguously bargain price. Given the dismal outlook for oil prices, that will get easier to do as next year unfolds.

Credit: By Liam Denning

Subject: Acquisitions & mergers; Prices; Petroleum industry

Location: United Kingdom--UK

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: XTO Energy Inc; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Dec 7, 2014

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1633928431

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1633928431?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon and M&A: The Crude Abides; Climate Improves for Exploration-and-Production Acquisitions

Author: Denning, Liam

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Dec 2014: n/a.

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Abstract:

Even as their colleagues on the trading floor wail, investment bankers can smile at falling oil prices.

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Even as their colleagues on the trading floor wail, investment bankers can smile at falling oil prices.

Cheaper oil means pain for exploration-and-production companies--and the rising possibility that they seek sanctuary in each other's arms. Rumors of potential deals involving big companies such as Exxon Mobil and the U.K.'s BG Group are swirling.

Yet while some deals may make sense, recent history means they will be cautious on placing that call to their banker. Mergers and acquisitions likely will become a bigger theme later in 2015.

That isn't to deny that the conditions for M&A are falling into place. Witness oil-field-services giants Halliburton and Baker Hughes attempting a deal. In the past three months, oil has fallen by about 30% and E&P stocks have dropped 36%. Yet Exxon's shares have lost less than 5% of their value.

In terms of its average multiple of enterprise value to forward earnings before interest, taxes, depreciation and amortization, the E&P sector now trades at roughly a 30% discount to Exxon, according to FactSet. That compares with an average premium of 8% and a maximum of almost 50% since 2007. Take BG, touted perennially as a takeover candidate: It now trades at a slight discount to Exxon versus an average premium of 34%.

On paper, BG looks a likely candidate. It has world-class assets, notably in Brazil and its liquefied natural-gas business. But these are housed in a company suffering from executive turmoil, high sensitivity to oil prices and doubts about key projects being delivered on time. At current prices, Exxon could offer a 30% premium, funded 75% with its own stock, and, based on consensus estimates, this would be accretive to 2016 earnings by more than 20%, before synergies.

Beware earnings forecasts when oil is sliding, though. And earnings accretion doesn't drive Exxon's M&A strategy anyway. When it bought XTO Energy in 2010, it said upfront it could be dilutive.

That earlier deal is illustrative in another way, too. As Doug Terreson of Evercore ISI points out, what counts for Exxon is return on capital employed. XTO's was much lower, helping to cut Exxon's annual return to 18% last year from 34% in 2008. Exxon's valuation premium, and some of its reputation as a savvy deal maker, followed. Last year, BG's return on capital was about 10%.

Any potential deal must also compete with Exxon's favorite acquisition target: its own stock. Over the past decade, Exxon has repurchased $220 billion of its shares, roughly equivalent to rival Chevron's current market value. With Exxon's borrowing costs below 5%, cost of equity at about 10%, and its net debt low, buybacks remain a formidable competitor to any deal.

To overcome that, Exxon would need to see deeper, strategic value. With its long-term growth plans in Russia at risk in today's environment, Exxon could use some new, exciting opportunities. BG's Brazilian assets or an E&P company's U.S. shale prospects would fit that bill. With XTO's legacy still apparent, though, selling a strategic deal to investors requires Exxon securing an unambiguously bargain price. Given the dismal outlook for oil prices, that will get easier to do as next year unfolds.

Write to Liam Denning at

Credit: By Liam Denning

Subject: Acquisitions & mergers; Prices; Petroleum industry

Location: United Kingdom--UK

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: XTO Energy Inc; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Dec 8, 2014

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1633952897

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1633952897?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Backs View on Global Energy Demand; Energy Giant, in Annual Industry Outlook, Projects Demand to Grow 35% by 2040

Author: Chen, Angela

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Dec 2014: n/a.

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Abstract:

Exxon Mobil Corp. left its outlook for global energy demand mostly unchanged on Tuesday, even as plunging oil prices have prompted energy companies to reduce their budgets and added pressure on countries that rely on oil revenue.

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Exxon Mobil Corp. left its outlook for global energy demand mostly unchanged on Tuesday, even as plunging oil prices have prompted energy companies to reduce their budgets and added pressure on countries that rely on oil revenue.

In its yearly outlook report on the industry, the oil giant affirmed its view that global energy demand will grow 35% by 2040, due to significant global growth in the middle class, an additional 2 billion people in the world and increased strength in emerging economies.

It added, however, oil and natural gas will meet about 65% of global demand growth in 2040, up from last year's prediction of 60%. Exxon again said natural gas will continue to be the fastest-growing major fuel source, although rise of nuclear energy is expected to jump.

Globally, Asia is expected to overtake Europe as the world's largest gas importer, as production in the region doubles and demand nearly triples. North America, meanwhile, is likely to become a net exporter of liquids by 2020, Exxon said, due to increasing supplies of natural gas liquids and bitumen from oil sands.

Exxon's outlook comes as tumbling oil prices hit a fresh five-year low on Monday as global supplies, growing from production in the U.S., Iraq, Libya and elsewhere, have flooded the market and demand has remained tepid.

In this year's report, Exxon emphasized the rising importance of renewable energy sources, like wind, solar and biofuels, which it said it expects to be among the fastest-growing major energy sources through 2040.

Specifically, Exxon said renewable energies such as wind, solar and biofuels are projected to grow 6% a year on average through 2040, at which point they will approach about 4% of global energy demand. Nuclear energy will nearly double.

The company also downplayed the significance of coal, which will be surpassed by natural gas. Coal demand is expected to rise through 2025 and then decline in line with the slowing of China's economic growth.

Oil futures have been collapsing since June. Member nations of the Organization of the Petroleum Exporting Countries, led by Saudi Arabia, have decided to keep production steady rather than pulling back to support prices, in a bid to defend their market share.

That has prompted some companies to make changes already. ConocoPhillips said Monday from this year to $13.5 billion in 2015. The Houston-based oil firm said it plans to spend less on major projects that are nearly complete as well as defer spending on shale-oil prospects in North America. Meanwhile, Norway's Statoil ASA said Friday that it would suspend the operations of three oil-drilling rigs for longer than previously planned because of overcapacity.

Write to Angela Chen at

Credit: By Angela Chen

Subject: Natural gas; Petroleum industry; Alternative energy sources; Energy policy

Location: Asia North America

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Dec 9, 2014

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1634510685

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Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Deadline for Decommissioned Tankers Set for Thursday; The Move To Bar Single-Hulled Tankers Grew Out of the 1989 Exxon Valdez Oil Spill

Author: Gay, Mara

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Dec 2014: n/a.

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Abstract:

The U.S. Coast Guard is sending inspectors aboard commercial vessels in New York Harbor to help decommission single-hull tankers ahead of a Thursday deadline, part of a decades-long phase-out in the wake of the 1989 Exxon Valdez oil spill.

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The U.S. Coast Guard is sending inspectors aboard commercial vessels in New York Harbor to help decommission single-hull tankers ahead of a Thursday deadline, part of a decades-long phase-out in the wake of the 1989 Exxon Valdez oil spill.

More than a quarter century after a supertanker dumped 12 million gallons of crude oil off the coast of Alaska, single-hulled vessels are set to be banned from U.S. waters. All U.S.-flagged ships that carry oil are required to have double hulls, which add a layer of protection and are designed to prevent accidental spills.

The phase-out of single-hulled vessels is taking place under the Oil Pollution Act of 1990, also known as OPA, which expanded the federal government's enforcement authority and made it easier to hold companies liable for spills.

"If you're going to be carrying something like oil, you're going to want some safety standards. It just makes sense," said U.S. Coast Guard Lt. Elizabeth Newton. "You have cargo tanks in the middle, then a void, then the shell of the vessel itself. Heaven forbid it were to run aground, there would be an added precaution."

As of Jan. 1, any oil carrying ship with a single hull still out on the water will be subject to fines, Coast Guard officials said. So far this month, the Coast Guard has inspected more than a dozen vessels in New York City waters.

"They would be in a lot of trouble if they decided to move around," Lt. Newton said. She said that while a couple carriers "have been dragging their feet," she expected all of them to be in full compliance by the deadline.

Credit: By Mara Gay

Subject: Oil spills; Environmental protection

Location: United States--US Alaska New York Harbor

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2014

Publication date: Dec 29, 2014

Section: US

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1640765755

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1640765755?accountid=7117

Copyright: (c) 2014 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Dow Off 300 in Global Rout --- Downside of Falling Oil Prices Hits the Shares of Caterpillar and Exxon Mobil

Author: Strumpf, Dan

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]06 Jan 2015: C.1.

ProQuest document link

Abstract:

A sharp drop in energy stocks dragged down the broader market, sending the Dow industrials to their biggest loss since early October, as investors recognized the downside of falling oil prices. Though lower gasoline prices are potentially good news for consumer stocks, the steep drop in oil prices has proved a drag on the broader stock market by threatening to curb profits within the once-booming energy sector, which has made up a growing part of the U.S. economy amid resurgent domestic oil production. [...]the slide in oil prices, while damping the outlook for energy companies, has been a boon for ordinary consumers by drastically lowering gasoline prices and giving a boost to consumer spending.

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A sharp drop in energy stocks dragged down the broader market, sending the Dow industrials to their biggest loss since early October, as investors recognized the downside of falling oil prices.

Though lower gasoline prices are potentially good news for consumer stocks, the steep drop in oil prices has proved a drag on the broader stock market by threatening to curb profits within the once-booming energy sector, which has made up a growing part of the U.S. economy amid resurgent domestic oil production.

The Dow Jones Industrial Average sank 331.34 points, or 1.9%, to 17501.65, the biggest one-day loss for the blue chips since Oct. 9.

The S&P 500 index shed 37.62 points, or 1.8%, to 2020.58, also its worst showing in three months and its fourth consecutive day of losses. The Nasdaq Composite Index declined 74.24, or 1.6%, to 4652.57.

The losses continued in Asia early Tuesday. Japan was hardest hit, with the Nikkei stock average down 2.5% before the midday break as the yen strengthened. In commodity-sensitive Australia, the benchmark index fell 1.9%. Stocks were also down in Hong Kong, Singapore and South Korea. Shanghai was an exception, with stocks rising slightly.

In the U.S. Monday, stocks headed lower from the opening bell and losses extended as the session wore on. Shares of energy companies led the push lower after U.S.-traded crude oil fell below $50 a barrel for the first time in nearly six years. U.S. oil futures finished the day 5% lower at $50.04 a barrel.

"Oil is first and foremost on everybody's mind," said Jesse Lubarsky, senior vice president and equity trader at Raymond James in New York.

The decline in oil prices has proved a mixed blessing for stocks in recent months. Energy shares in the S&P 500 dropped 4% Monday, and almost a quarter of the Dow's decline was due to losses among the shares of Chevron, Exxon Mobil and Caterpillar.

The declines were even steeper among shares of energy companies with big U.S. operations, where once-high oil prices fueled a yearslong drilling boom. Shares of Continental Resources plunged $4.14, or 11%, to $34.65. Noble Energy slid 4.49, or 9.6%, to 42.39. The $1 billion SPDR Oil & Gas Exploration & Production exchange-traded fund lost 6.4%.

Caterpillar, the heavy-equipment manufacturer and economic bellwether, posted the biggest loss in the blue-chip index. Its shares fell 4.85, or 5.3%, to 87.03 after analysts at J.P. Morgan Chase downgraded the outlook for the stock due to the company's exposure to the oil-and-gas exploration and infrastructure development.

Shares of Chevron fell 4.50, or 4%, to 108.08, while Exxon Mobil sank 2.54, or 2.7%, to 90.29.

Despite the scale of Monday's selloff, traders said that selling wasn't exceptionally heavy.

Mr. Lubarsky described the stock selloff as "orderly," with investors recalibrating portfolios as the new year gets under way. "It's not like we're seeing massive selling coming through," he said. "People are turning on the engines and starting to figure out where we're headed for the next couple of months."

Despite Monday's retreat, the Dow is just 3.1% from an all-time record reached in late December, and many investors remain optimistic on the outlook for stocks in 2015.

The accelerating U.S. economy and expanding corporate profits are expected to give a boost to major stock benchmarks this year. And the slide in oil prices, while damping the outlook for energy companies, has been a boon for ordinary consumers by drastically lowering gasoline prices and giving a boost to consumer spending.

"U.S. growth is actually getting better, not worse," said Jim Swanson, who manages about $2.6 billion in stocks and bonds at MFS Investment Management. He said he is tilting his portfolio toward U.S. stocks over other kinds of investments. "Oil is an input cost, and that [decline] is a help to all the regions that are foundering out there," he said.

Also weighing on U.S. shares was spillover selling from European markets.

The Stoxx Europe 600 index closed down 2.2%, amid fresh uncertainty over Greece's political future. With elections scheduled for later this month, investors continue to fret over the prospect of a new government that pushes back against Europe-imposed austerity measures.

The worries sent the euro tumbling to a nine-year low against the dollar. The single currency traded late Monday at $1.1933.

Investors flocked to the perceived haven of U.S. government debt, pushing the yield on the benchmark 10-year Treasury note to within striking distance of 2%. Late Monday, the yield fell by 0.085 percentage point to 2.038% as prices climbed by 24/32. Bond prices rise when yields fall.

The last time the 10-year yield traded below 2% on an intraday basis was on Oct. 15, when yields fell as low as 1.873%. The slide in yields has caught investors by surprise, especially given signals from the Federal Reserve of its likely plans to raise interest rates sometime this year.

Gold futures jumped $17.90, or 1.5%, to $1,203.90 an ounce.

Auto makers' shares slid despite strong December sales reports. General Motors fell 51 cents, or 1.5%, to 34.33, while Ford Motor shares fell 60 cents, or 3.9%, to 14.76.

Elsewhere, shares of American Airlines Group fell three cents, or 0.1%, to 53.88, reversing early gains, after the board of the Allied Pilots Association union agreed late Saturday to accept the final contract proposal made in November by the carrier and put it out to a membership vote.

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Credit: By Dan Strumpf

Subject: Dow Jones averages; Stock prices; Daily markets (wsj)

Location: United States--US

Classification: 9190: United States; 3400: Investment analysis & personal finance

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: C.1

Publication year: 2015

Publication date: Jan 6, 2015

column: Monday's Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1642116769

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1642116769?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon Fined $1.05 Million for 2011 Yellowstone Pipeline Break; Company Also Agrees to Settlement of Claims Related to Seven Private Properties Tied to Spill

Author: Sider, Alison

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Jan 2015: n/a.

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Abstract:

Exxon Mobil Corp. must pay a $1.05 million penalty for safety violations related to a under Montana's Yellowstone River, federal regulators said Friday.

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Exxon Mobil Corp. must pay a $1.05 million penalty for safety violations related to a under Montana's Yellowstone River, federal regulators said Friday.

The pipeline was buried beneath the riverbed, but flooding amid a summer snow melt exposed it and stressed it to the breaking point. An estimated 1,500 barrels of oil spilled into the river and were carried miles downstream.

The Yellowstone River is again the site of a major cleanup effort, after another pipeline break earlier this month about 230 miles east of Exxon's spill. It isn't yet clear what caused Bridger Pipeline LLC's Poplar pipe to fail under the river. The company now estimates that about 960 barrels--more than 40,000 gallons--spilled into the partially iced-over river.

That incident for residents of the city of Glendive, Mont., but state officials said Friday that the water is once again safe to drink.

In the case of the 2011 spill, Jeffrey Wiese, associate administrator of the Pipeline and Hazardous Materials Safety Administration, upheld a finding that Exxon hadn't adequately prepared for the possibility that flooding could cause the pipeline to fail--something that had happened to pipelines in the area in the past. Exxon had argued that its line had survived more severe floods intact and it didn't have reason to believe that the line was in danger.

Exxon spokesman Christian Flathman said in a statement Saturday that Exxon is reviewing the agency's final order. The company has 20 days to ask the agency to reconsider the ruling.

The agency found that Exxon complied with federal regulations and did take steps ahead of time to prevent and mitigate a potential spill in the area, withdrawing one of its against the company. That helped reduce the fine by nearly $700,000 from what the agency proposed in 2013.

Also on Friday, Exxon agreed to a $2 million settlement of claims relating to seven private properties affected by the oil spill, said Jory Ruggiero, an attorney for the plaintiffs.

"Exxon Mobil Pipeline Company committed to paying for the cleanup and all valid claims related to the incident. This settlement was an extension of that process," Mr. Flathman said.

Exxon reached a $1.6 million settlement with the state of Montana in 2013 and agreed to reimburse the state for more than $760,000 in cleanup costs.

Write to Alison Sider at

Credit: By Alison Sider

Subject: Pipelines; Petroleum industry; Environmental cleanup; Oil spills; Settlements & damages; Floods

Location: Montana Yellowstone River

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Jan 24, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1647828070

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Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited wi thout permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Corporate News: Exxon Fined $1.05 Million For Pipeline Break in 2011

Author: Sider, Alison

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]26 Jan 2015: B.3.

ProQuest document link

Abstract:

Exxon Mobil Corp. must pay a $1.05 million penalty for safety violations related to a 2011 pipeline break under Montana's Yellowstone River, federal regulators said Friday.

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Full text:  

Exxon Mobil Corp. must pay a $1.05 million penalty for safety violations related to a 2011 pipeline break under Montana's Yellowstone River, federal regulators said Friday.

The pipeline was buried beneath the riverbed, but flooding amid a summer snow melt exposed it and stressed it to the breaking point. An estimated 1,500 barrels of oil spilled into the river and were carried miles downstream.

The Yellowstone River is again the site of a major cleanup effort, after another pipeline break earlier this month about 230 miles east of Exxon's spill. It isn't yet clear what caused Bridger Pipeline LLC's Poplar pipe to fail under the river. The company now estimates that about 960 barrels -- more than 40,000 gallons -- spilled into the partially iced-over river.

That incident fouled drinking water for residents of the city of Glendive, Mont., but state officials said Friday that the water is once again safe to drink.

In the case of the 2011 spill, Jeffrey Wiese, associate administrator of the Pipeline and Hazardous Materials Safety Administration, upheld a finding that Exxon hadn't adequately prepared for the possibility that flooding could cause the pipeline to fail -- something that had happened to pipelines in the area in the past. Exxon had argued that its line had survived more severe floods intact and it didn't have reason to believe that the line was in danger.

Exxon spokesman Christian Flathman said in a statement Saturday that Exxon is reviewing the agency's final order. The company has 20 days to ask the agency to reconsider the ruling.

The agency found that Exxon complied with federal regulations and did take steps ahead of time to prevent and mitigate a potential spill in the area, withdrawing one of its previous allegations against the company. That helped reduce the fine by nearly $700,000 from what the agency proposed in 2013.

Also on Friday, Exxon agreed to a $2 million settlement of claims relating to seven private properties affected by the oil spill, said Jory Ruggiero, an attorney for the plaintiffs.

"Exxon Mobil Pipeline Company committed to paying for the cleanup and all valid claims related to the incident. This settlement was an extension of that process," Mr. Flathman said.

Exxon reached a $1.6 million settlement with the state of Montana in 2013 and agreed to reimburse the state for more than $760,000 in cleanup costs.

Credit: By Alison Sider

Subject: Pipelines; Petroleum industry; Environmental cleanup; Fines & penalties; Oil spills

Location: Montana Yellowstone River

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 9190: United States; 8510: Petroleum industry; 1540: Pollution control

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2015

Publication date: Jan 26, 2015

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1648031503

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Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon's Profit Drops 21% as Production Declines; Quarterly Cash Flow Reaches Lowest Level Since 2009

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Feb 2015: n/a.

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Abstract:

Among the data that made traders more bullish was a report that the number of rigs drilling for oil in the U.S. fell 7% last week to 1,223, the lowest in three years, according to oil-field-services company Baker Hughes Inc. A surge in U.S. oil output, along with muted demand for oil around the globe, has led to an oversupply of crude that some energy analysts have put as high as 2 million barrels a day.

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Exxon Mobil Corp., the biggest and richest U.S. oil company, is moving to conserve cash in a sign that it doesn't expect a quick rebound in crude prices.

Despite generating $87.3 billion in revenue last year, Exxon's cash flow in the last three months of 2014 fell to its lowest level since recession-wracked 2009. On Monday, the company said it would cut share buybacks by $1 billion this quarter, saving about $2 billion as it searches for ways to cut costs.

"This organization has a very strong culture of driving down our cost structure," Jeff Woodbury, Exxon's head of investor relations, said in a call with analysts. The Irving, Texas, company isn't assuming that oil and gas prices will increase, he added.

One by one, the world's biggest oil and gas producers are posting weaker profits as oil prices have collapsed to less than $55 a barrel from triple digits over the summer. Last week, ConocoPhillips said it would cut spending on new oil and gas projects by 15%, on top of a 20% cut disclosed in December. Occidental Petroleum Corp. said it would chop capital spending by a third this year.

Royal Dutch Shell PLC has said it would spend $15 billion less than planned over the next three years. And Chevron Corp. plans to cut spending by $5 billion from 2014 and suspend its share-buyback program.

Exxon said it operated more drilling rigs in the U.S. in the fourth quarter than it had earlier in the year, and its retrenchment is less drastic than some of its rivals. But given the company's focus on the long-term, its efforts to retain cash are a sign of just how cautious energy executives have become. The company won't report its capital spending plans until March.

The big, diversified energy companies "were built for conditions like these," said Doug Terreson, head of energy research at Evercore ISI. But even giants "want to try and preserve cash and prepare for the downturn in case it's extended."

These companies, which generate billions of dollars in cash flow a year, are among the best insulated in their industry against the bite of falling oil prices. They have strong balance sheets and own refining and chemicals businesses that can benefit from cheap crude, which they convert to plastics, gasoline and other fuels.

Smaller companies, whose shale-drilling has sparked a resurgence in U.S. oil and gas output, are more vulnerable to the price collapse; most of them will report earnings later this month.

There are signs that crude prices might be stabilizing. The U.S. benchmark for oil prices rose to $49.57 on Monday, continuing a recent recovery since prices dipped below $45 a barrel last week. The price of Brent crude, the global benchmark, also rose to $54.75, up 3.3%.

Exxon's shares rose 2.5% to $89.58 in 4 p.m. New York on Monday trading amid gains in the broader market.

Among the data that made traders more bullish was a report that the number of rigs drilling for oil in the U.S. fell 7% last week to 1,223, the lowest in three years, according to oil-field-services company Baker Hughes Inc. A surge in U.S. oil output, along with muted demand for oil around the globe, has led to an oversupply of crude that some energy analysts have put as high as 2 million barrels a day.

Still, few analysts expect U.S. oil production to slow until the second half of the year at the earliest, and crude prices remain near the lowest level in six years.

The oil-price slump has arrived at a vulnerable moment for big energy companies. Natural gas prices have remained low since drillers unleashed a flood of gas from shale-rock formations beginning around 2008, keeping a lid on profits of big producers like Exxon, which bought XTO Energy, a shale-gas pioneer, for $25 billion in 2010.

Bolstered by oil hovering around $100 a barrel for the last three years, Exxon and its peers have invested at historic levels to tap massive energy deposits in some of the most remote reaches on earth, from Australia's offshore gas fields to Canada's oil sands. At the same time, they have steadily boosted dividend payments that long been their hallmark, and added share buybacks as a further enticement to investors.

Such aggressive spending, combined with low interest rates, has led energy giants to pile on billions of dollars in debt. Now, crude's fall is taking a toll on the most fortified balance sheets in the oil patch, with some analysts questioning how much new debt Exxon and Chevron can take on and still maintain their superior credit ratings. The companies have indicated they can borrow much more without jeopardizing their credit ratings.

Exxon borrowed $7.3 billion in the quarter, bringing total debt to $29.1 billion, more than double the level in early 2013. Cash on hand fell to $4.7 billion by the end of last year from $5 billion at the beginning of the year.

Exxon's $6.6 billion profit for the fourth quarter of 2014 was 21% less than a year ago, contributing to its weak cash flow. While still more than any U.S. rival, Exxon's cash flow for the quarter was about $7 billion short of covering its costs for tapping oil and gas, paying dividends and repurchasing shares.

In all, Exxon reported a per-share profit of $1.56, down from $1.91 a year earlier. Revenue slipped to $87.3 billion from $110.9 billion.

Wall Street analysts polled by Thomson Reuters expected the company to report per-share profit of $1.34 on revenue of $87.6 billion.

Exxon is expected to release its capital spending plans for 2015 next month; a year ago, it forecast spending less than $37 billion this year.

Corrections & Amplifications

Exxon Mobil's refining and marketing earnings fell by 46% in the fourth quarter. An earlier version of this article misstated the percentage in the sixth paragraph.

Write to Daniel Gilbert at

Credit: By Daniel Gilbert

Subject: Petroleum industry; Cash flow; Corporate profits; Capital expenditures; Crude oil prices; Petroleum production; Natural gas prices

Location: United States--US

People: Tillerson, Rex W

Company / organization: Name: ConocoPhillips Co; NAICS: 211111; Name: Chevron Corp; NAICS: 324110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Occidental Petroleum Corp; NAICS: 324110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Feb 2, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1650152712

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1650152712?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Imperial Oil Profit Falls 36%; Exxon Mobil's Canadian Unit Hurt by Lower Oil Prices and Volumes

Author: McKinnon, Judy

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Feb 2015: n/a.

ProQuest document link

Abstract:

Imperial Oil Ltd., the Canadian subsidiary of Exxon Mobil Corp., posted a 36% decline in fourth-quarter earnings on Monday, hurt by lower oil prices and volumes.

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Imperial Oil Ltd., the Canadian subsidiary of Exxon Mobil Corp., posted a 36% decline in fourth-quarter earnings on Monday, hurt by lower oil prices and volumes.

Imperial Oil said the continued slump in oil prices reduced earnings by about 100 million Canadian dollars ($78.7 million), while lower volumes shaved about C$50 million from profits.

The Calgary, Alberta-based integrated energy company said its quarterly profit fell to C$671 million, or 79 Canadian cents a share, from C$1.06 billion, or C$1.24 a year earlier. Earnings came in ahead of the 72 Canadian cents a share analysts polled by Thomson Reuters were expecting. Revenue of C$8.03 billion was down from C$8.36 billion a year earlier.

Lower commodity prices also took a bite out of parent Exxon's earnings. It reported earlier Monday and unveiled plans to slash its share buyback program.

Imperial Oil said production dipped to 315,000 gross-equivalent barrels a day from 329,000 barrels a day a year earlier. Excluding the sale of conventional assets earlier in the year, it said production was up 4,000 barrels.

The company said its average realizations from sales of synthetic crude oil fell about 10% to C$82.04 per barrel, due to a lower West Texas Intermediate crude benchmark price, which was down about 25%, partly offset by a weaker Canadian dollar.

Imperial's capital and exploration spending edged up 1% to C$1.59 billion in the latest quarter. It said its near-term investment plans remain "largely unchanged," but added it will continue to monitor and respond to market conditions in light of the continued slump in crude oil prices.

Canada's largest oil and gas producers have been taking steps to cope with a more than 50% drop in crude oil prices since last summer. Many have scaled back capital spending and cut their dividends. Imperial Oil maintained its quarterly dividend at 13 Canadian cents a share.

It said its spending in the quarter was targeted largely at its Kearl oil sands mine expansion in northern Alberta, which it said continues ahead of schedule. Start-up is now targeted for the third quarter, ahead of the original year-end target, it said. Kearl, which is expected to produce up to 345,000 barrels a day at full capacity, is undergoing an C$8.9 billion expansion.

Write to Judy McKinnon at

Credit: By Judy McKinnon

Subject: Crude oil; Crude oil prices; Petroleum industry; Energy economics; Canadian dollar; Capital expenditures

Location: Calgary Alberta Canada

Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140; Name: Imperial Oil Ltd; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Feb 2, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1650158875

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1650158875?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon is No Chicken Little on Oil Prices -- Heard on the Street; Heard: Exxon is No Chicken Little on Oil Prices; Exxon is no chicken little on oil prices; Exxon is No Chicken Little on Oil Prices -- Heard on the Street; Exxon is No Chicken Little on Oil Prices; Exxon is No Chicken Little on Oil Prices; Something Has to Give for Prices to Rebound

Author: Denning, Liam

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Feb 2015: n/a.

ProQuest document link

Abstract:

Yet even as E&P companies announce big budget cuts for 2015, production overall is still expected to grow and every time oil futures move up it allows these firms to hedge a bit more of their cash flow. [...]while the majors can borrow to cover their all-important dividends in the short term, big-ticket projects like liquefied gas, Arctic drilling and Canadian oil sands need much higher oil prices to make decent returns on investment.

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If you want to picture today's oil market, imagine a brood of giant chickens running headlong at each other.

The one thing everyone in the industry agrees on is that someone has to cut back. The question is who will be willing, or forced, to do so in order to help oil prices rebound. Saudi Arabia says it won't and data out Monday showed that Russia's output remained close to record levels in December.

Beyond the state actors, oil majors aren't ceding much ground either. Exxon Mobil on Monday reported that capital expenditure and shareholder payouts were more than double its cash from operations in the fourth quarter. Yet it punted guidance on this year's investment plans to next month's analyst day and re-emphasized that spending was guided by long-term projections rather than "volatility in the market."

Rivals Chevron and Royal Dutch Shell, while deigning to actually give 2015 budget guidance, also haven't taken the ax to spending, with each likely to invest well north of $30 billion. Their capacity to cut back is limited given existing commitments such as Chevron's Australian liquefied natural gas projects. But Shell, for instance, still plans to spend $1 billion this year drilling in Alaska. In both cases, there is an implicit bet that oil will rebound sooner rather than later.

Oil has rallied sharply in recent days, taking Brent back above $50 a barrel, on numbers showing the biggest weekly drop of U.S. rigs in operations since the financial crisis. Like the oil majors, investors are betting that it will be smaller exploration and production companies that lose the game of chicken to curtail supply growth to rebalance the market.

Certainly, falling rig counts bolster this view. Yet even as E&P companies announce big budget cuts for 2015, production overall is still expected to grow and every time oil futures move up it allows these firms to hedge a bit more of their cash flow.

Moreover, while the majors can borrow to cover their all-important dividends in the short term, big-ticket projects like liquefied gas, Arctic drilling and Canadian oil sands need much higher oil prices to make decent returns on investment. The latter is the metric investors focus on with the oil majors, and where performance has slipped badly in the past five years or so. That makes Big Oil stocks vulnerable if the companies continue to hold the line on spending. Either the E&P sector could prove more resilient than expected or Saudi Arabia may yet decide to flood the market with extra supply, squeezing all of its rivals.

Write to Liam Denning at

Credit: By Liam Denning

Subject: Petroleum industry; Investments; Capital expenditures; Budgets

Location: Russia Saudi Arabia

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Feb 2, 2015

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1650228834

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Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon's Profit Drops 21% as Production Declines; Quarterly Cash Flow Reaches Lowest Level Since 2009

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Feb 2015: n/a.

ProQuest document link

Abstract:

Among the data that made traders more bullish was a report on Friday that the number of rigs drilling for oil in the U.S. fell 7% last week to 1,223, the lowest in three years, according to oil-field-services company Baker Hughes Inc. A surge in U.S. oil output, along with muted demand for oil around the globe, has led to an oversupply of crude that some energy analysts have put as high as 2 million barrels a day.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp., the biggest and richest U.S. oil company, is moving to conserve cash in a sign that it doesn't expect a quick rebound in crude prices.

Despite generating $87.3 billion in revenue last year, Exxon's cash flow in the last three months of 2014 fell to its lowest level since recession-wracked 2009. On Monday, the company said it would cut spending on share buybacks by two-thirds to $1 billion this quarter as it searches for ways to cut costs.

"This organization has a very strong culture of driving down our cost structure," Jeff Woodbury, Exxon's head of investor relations, said in a call with analysts. The Irving, Texas, company isn't assuming that oil and gas prices will increase, he added.

One by one, the world's biggest oil and gas producers are posting weaker profits as oil prices have collapsed to less than $55 a barrel from triple digits over the summer. Last week, ConocoPhillips said it would cut spending on new oil and gas projects by 15%, on top of a 20% cut disclosed in December. Occidental Petroleum Corp. said it would chop capital spending by a third this year.

Royal Dutch Shell PLC has said it would spend $15 billion less than planned over the next three years. And Chevron Corp. plans to cut spending by $5 billion from 2014 and suspend its share-buyback program.

Exxon said it operated more drilling rigs in the U.S. in the fourth quarter than it had earlier in the year, and its retrenchment is less drastic than some of its rivals. But given the company's focus on the long-term, its efforts to retain cash are a sign of just how cautious energy executives have become. The company won't report its capital spending plans until March.

The big, diversified energy companies "were built for conditions like these," said Doug Terreson, head of energy research at Evercore ISI. But even giants "want to try and preserve cash and prepare for the downturn in case it's extended."

These companies, which generate billions of dollars in cash flow a year, are among the best insulated in their industry against the bite of falling oil prices. They have strong balance sheets and own refining and chemicals businesses that can benefit from cheap crude, which they convert to plastics, gasoline and other fuels.

Smaller companies, whose shale-drilling has sparked a resurgence in U.S. oil and gas output, are more vulnerable to the price collapse; most of them will report earnings later this month.

There are signs that crude prices might be stabilizing. The U.S. benchmark for oil prices rose to $49.57 on Monday, continuing a recent recovery since prices dipped below $45 a barrel last week.

Exxon shares rose 2.5% to $89.58 in 4 p.m. New York trading on Monday amid broad market gains. The price of Brent crude, the global benchmark, also rose to $54.75, up 3.3%.

Among the data that made traders more bullish was a report on Friday that the number of rigs drilling for oil in the U.S. fell 7% last week to 1,223, the lowest in three years, according to oil-field-services company Baker Hughes Inc. A surge in U.S. oil output, along with muted demand for oil around the globe, has led to an oversupply of crude that some energy analysts have put as high as 2 million barrels a day.

Still, few analysts expect U.S. oil production to slow until the second half of the year at the earliest, and crude prices remain near the lowest level in six years.

The oil-price slump has arrived at a vulnerable moment for big energy companies. Natural gas prices have remained low since drillers unleashed a flood of gas from shale-rock formations beginning around 2008, keeping a lid on profits of big producers like Exxon, which bought XTO Energy, a shale-gas pioneer, for $25 billion in 2010.

Bolstered by oil hovering around $100 a barrel for the last three years, Exxon and its peers have invested at historic levels to tap massive energy deposits in some of the most remote reaches on earth, from Australia's offshore gas fields to Canada's oil sands. At the same time, they have steadily boosted dividend payments that long been their hallmark, and added share buybacks as a further enticement to investors.

Such aggressive spending, combined with low interest rates, has led energy giants to pile on billions of dollars in debt. Now, crude's fall is taking a toll on the strongest balance sheets in the oil patch, with some analysts questioning how much new debt Exxon and Chevron can take on and still maintain their superior credit ratings. The companies have indicated they can borrow much more without jeopardizing their credit ratings.

Exxon borrowed $7.3 billion in the quarter, bringing total debt to $29.1 billion, more than double the level in early 2013. Cash on hand fell to $4.7 billion by the end of last year from $5 billion at the beginning of the year.

Exxon's $6.6 billion profit for the fourth quarter of 2014 was 21% less than a year ago, contributing to its weak cash flow. While still more than any U.S. rival, Exxon's cash flow for the quarter was about $7 billion short of covering its costs for tapping oil and gas, paying dividends and repurchasing shares.

In all, Exxon reported a per-share profit of $1.56, down from $1.91 a year earlier. Revenue slipped to $87.3 billion from $110.9 billion.

Wall Street analysts polled by Thomson Reuters expected the company to report per-share profit of $1.34 on revenue of $87.6 billion.

Exxon is expected to release its capital spending plans for 2015 next month; a year ago, it forecast spending less than $37 billion this year.

Write to Daniel Gilbert at daniel.gilbert@wsj.com

Corrections & Amplifications

Exxon Mobil's refining and marketing earnings fell by 46% in the fourth quarter. An earlier version of this article misstated the percentage in the sixth paragraph.

Credit: By Daniel Gilbert

Subject: Petroleum industry; Cash flow; Corporate profits; Capital expenditures; Crude oil prices; Petroleum production; Natural gas prices

Location: United States--US

Company / organization: Name: ConocoPhillips Co; NAICS: 211111; Name: Chevron Corp; NAICS: 324110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Occidental Petroleum Corp; NAICS: 324110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Feb 3, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1650250811

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1650250811?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

An Ominous Forecast From Exxon --- Share Buybacks and Capital Spending Are Tightened as Prices Continue to Lag

Author: Gilbert, Daniel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]03 Feb 2015: B.1.

ProQuest document link

Abstract:

Among the data that made traders more bullish was a report on Friday that the number of rigs drilling for oil in the U.S. fell 7% last week to 1,223, the lowest in three years, according to oil-field-services company Baker Hughes Inc. A surge in U.S. oil output, along with muted demand for oil around the globe, has led to an oversupply of crude that some energy analysts have put as high as 2 million barrels a day.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp., the biggest and richest U.S. oil company, is moving to conserve cash in a sign that it doesn't expect a quick rebound in crude prices.

Despite generating $87.3 billion in revenue last year, Exxon's cash flow in the last three months of 2014 fell to its lowest level since recession-wracked 2009. On Monday, the company said it would cut spending on share buybacks by two-thirds to $1 billion this quarter as it searches for ways to cut costs.

"This organization has a very strong culture of driving down our cost structure," Jeff Woodbury, Exxon's head of investor relations, said in a call with analysts. The Irving, Texas, company isn't assuming that oil and gas prices will increase, he added.

One by one, the world's biggest oil and gas producers are posting weaker profits as oil prices have collapsed to less than $55 a barrel from triple digits over the summer. Last week, ConocoPhillips said it would cut spending on new oil and gas projects by 15%, on top of a 20% cut disclosed in December. Occidental Petroleum Corp. said it would chop capital spending by a third this year.

Royal Dutch Shell PLC has said it would spend $15 billion less than planned over the next three years. And Chevron Corp. plans to cut spending by $5 billion from 2014 and suspend its share-buyback program.

Exxon said it operated more drilling rigs in the U.S. in the fourth quarter than it had earlier in the year, and its retrenchment is less drastic than some of its rivals. But given the company's focus on the long-term, its efforts to retain cash are a sign of just how cautious energy executives have become. The company won't report its capital spending plans until March.

The big, diversified energy companies "were built for conditions like these," said Doug Terreson, head of energy research at Evercore ISI. But even giants "want to try and preserve cash and prepare for the downturn in case it's extended."

These companies, which generate billions of dollars in cash flow a year, are among the best insulated in their industry against the bite of falling oil prices. They have strong balance sheets and own refining and chemicals businesses that can benefit from cheap crude, which they convert to plastics, gasoline and other fuels.

Smaller companies, whose shale-drilling has sparked a resurgence in U.S. oil and gas output, are more vulnerable to the price collapse; most of them will report earnings later this month.

There are signs that crude prices might be stabilizing. The U.S. benchmark for oil prices rose to $49.57 on Monday, continuing a recent recovery since prices dipped below $45 a barrel last week.

Exxon shares rose 2.5% to $89.58 in 4 p.m. New York trading on Monday.

Among the data that made traders more bullish was a report on Friday that the number of rigs drilling for oil in the U.S. fell 7% last week to 1,223, the lowest in three years, according to oil-field-services company Baker Hughes Inc. A surge in U.S. oil output, along with muted demand for oil around the globe, has led to an oversupply of crude that some energy analysts have put as high as 2 million barrels a day.

Still, few analysts expect U.S. oil production to slow until the second half of the year at the earliest, and crude prices remain near the lowest level in six years.

The oil-price slump has arrived at a vulnerable moment for big energy companies. Natural gas prices have remained low since drillers unleashed a flood of gas from shale-rock formations beginning around 2008, keeping a lid on profits of big producers like Exxon, which bought XTO Energy, a shale-gas pioneer, for $25 billion in 2010.

Bolstered by oil hovering around $100 a barrel for the last three years, Exxon and its peers have invested at historic levels to tap massive energy deposits in some of the most remote reaches on earth, from Australia's offshore gas fields to Canada's oil sands. At the same time, they have steadily boosted dividend payments that long been their hallmark, and added share buybacks as a further enticement to investors.

Such aggressive spending, combined with low interest rates, led energy giants to pile on billions of dollars in debt. Now, crude's fall is taking a toll on the strongest balance sheets in the oil patch, with some analysts questioning how much new debt Exxon and Chevron can take on and still maintain their superior credit ratings. The companies have indicated they can borrow much more without jeopardizing their credit ratings.

Exxon borrowed $7.3 billion in the quarter, bringing total debt to $29.1 billion, more than double the level in early 2013. Cash on hand fell to $4.7 billion by the end of last year from $5 billion at the beginning of the year.

Exxon's $6.6 billion profit for the fourth quarter of 2014 was 21% less than a year ago, contributing to its weak cash flow. While still more than any U.S. rival, Exxon's cash flow for the quarter was about $7 billion short of covering its costs for tapping oil and gas, paying dividends and repurchasing shares.

In all, Exxon reported a per-share profit of $1.56, down from $1.91 a year earlier. Revenue slipped to $87.3 billion from $110.9 billion.

Wall Street analysts polled by Thomson Reuters expected the company to report per-share profit of $1.34 on revenue of $87.6 billion.

Exxon is expected to release its capital spending plans for 2015 next month.

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Credit: By Daniel Gilbert

Subject: Petroleum industry; Cash flow; Corporate profits; Capital expenditures; Petroleum production; Natural gas prices; Cost reduction; Crude oil prices; Securities buybacks

Location: United States--US

Company / organization: Name: ConocoPhillips Co; NAICS: 211111; Name: Chevron Corp; NAICS: 324110, 211 111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Occidental Petroleum Corp; NAICS: 324110, 211111; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 3100: Capital & debt management; 8510: Petroleum industry; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2015

Publication date: Feb 3, 2015

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1650397560

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1650397560?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Is the Exxon Tiger Ready to Pounce? Oil Giant Well-Armed With Treasury Shares as Downturn Provides Ripe Hunting

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Feb 2015: n/a.

ProQuest document link

Abstract:

Among them is Anadarko Petroleum Corp., which has a stock-market value of $44 billion, operates in shale-rock formations across the U.S. and is in the early stages of building a massive plant to export gas from Mozambique. Another is BG Group PLC, with a $32 billion stock-market value, which is a major player in shipping natural gas globally and is exploring potentially giant oil prospects in the deep waters off the coast of Brazil.

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Five years ago, an energy rout even worse than the current crude-oil plunge sent natural-gas prices down 70% in a year. That is when Exxon Mobil Corp. snapped up XTO Energy Inc., one of the biggest U.S. gas producers, for $25 billion in stock.

Now the nosedive in oil prices is again creating Exxon's favorite hunting conditions, as less-well-heeled companies struggle with shrinking cash flow.

With its ability to borrow cheaply--Exxon has a higher credit rating than the U.S. government--analysts say the company is capable of swallowing any rival, regulatory obstacles aside. And the company has amassed a hoard of its own shares that boost its takeover power.

A blockbuster deal is far from a sure thing. Irving, Texas-based Exxon would have to go after a big target to meaningfully boost its oil and gas reserves, its inventory of fuels that it can pump at a profit.

Acquiring another of the world's biggest oil companies, such as BP PLC, would create an oil company of a size without modern precedent. Already, big oil companies have struggled with managing the logistics of their largest projects, from developments in Canada's oil sands to liquefied natural-gas plants.

"The idea that bigger is better I don't think holds water," said Amy Myers Jaffe, executive director of energy and sustainability at the University of California-Davis. "The megaprojects haven't panned out for shareholders."

Even so, Wall Street is already speculating on which company Exxon will woo during this downturn. BP "is the obvious fit," Paul Sankey, senior analyst at Wolfe Research, wrote in a report earlier this last week. Buying London-based BP London-based, which is still dealing with the fallout of the 2010 Deepwater Horizon disaster, "would close out a damaged brand at a terrific price" and bolster Exxon's capacity to find new sources of oil and gas.

Other potentially attractive targets singled out by analysts include a smaller tier of companies, which have discovered huge deposits of oil and gas but may lack the cash flow to develop them quickly.

Among them is Anadarko Petroleum Corp., which has a stock-market value of $44 billion, operates in shale-rock formations across the U.S. and is in the early stages of building a massive plant to export gas from Mozambique. Another is BG Group PLC, with a $32 billion stock-market value, which is a major player in shipping natural gas globally and is exploring potentially giant oil prospects in the deep waters off the coast of Brazil.

BP and BG declined to comment. An Anadarko spokesman said the company doesn't comment on rumors.

Exxon declined to comment on potential acquisitions. Last week, Jeff Woodbury, the company's head of investor relations, told analysts it is "very alert to value propositions," adding that "we'll pursue only those acquisitions that we think have ultimate strategic value and are accretive to our longer-term returns."

Exxon has a history of doing transformative deals during times of distress in the energy industry. It bought Mobil Corp. for about $82 billion in stock in 1999 amid a period of prolonged low oil prices.

But it may be wary of another deal like XTO, which has dented its profits because U.S. natural-gas prices have remained low.

Today Exxon has few peers big enough to boost its output or profits in a meaningful way. It already produces 2.3% of the world's oil, and refines 11.5% of the gasoline and other fuels in the U.S. If combined with Chevron Corp., the next largest Western oil company by stock-market value, they would supply 4% of global oil, and 17% of American refining output.

Such a merger, which would reunite the two biggest pieces of the former Standard Oil empire, might not pass muster with U.S. regulators, some analysts say.

Exxon has another tradition--buying up its own shares. It has spent $197 billion on buybacks since 2005, more than double what it has paid in dividends and about 65% of its investment in oil and gas projects over that time. It plans to spend $1 billion buying back its shares in the first quarter of the year, down from a rate of $3 billion a quarter since 2013.

The shares go into Exxon's treasury and can be reissued to make acquisitions. Its treasury shares are worth about $353 billion. Exxon's stock rose 2% to $92.37 in 4 p.m. trading on Thursday.

Buying back shares shrinks the number available to the public and can increase their value. Exxon has said it buys back shares only after funding oil-and-gas projects that offer a high return, and after paying dividends.

Exxon's swollen treasury testifies to the difficulty of improving its profit margins--and, perhaps, to the rich stock-market values of rivals that have made them tough acquisition targets. The downdraft in oil prices is changing that.

An index of 21 U.S.-based oil and gas producers is down about 25% from a year ago. Exxon, more resilient to lower prices, is down about 3%.

"Given the financial strength of the company and given the distress of the rest of the industry, this is a situation that is tailor made for" Exxon, said J. Robinson West, a senior adviser at the Center for Strategic and International Studies, a Washington, D.C.-based research institution.

But that doesn't mean it should acquire another major oil company, he adds. That "doesn't do them much good," he said. "It just makes them bigger."

Write to Daniel Gilbert at daniel.gilbert@wsj.com

Credit: By Daniel Gilbert

Subject: Acquisitions & mergers; Petroleum industry; Oil reserves; Cash flow; Corporate profits; Prices; Natural gas; Natural gas reserves

Location: United States--US

Company / organization: Name: BP PLC; NAICS: 447110, 324110, 211111; Name: University of California-Davis; NAICS: 611310; Name: BG Group PLC; NAICS: 221210; Name: XTO Energy Inc; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Feb 12, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1654735621

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1 654735621?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Is the Exxon Tiger Ready to Pounce?

Author: Gilbert, Daniel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]13 Feb 2015: B.1.

ProQuest document link

Abstract:

Among them is Anadarko Petroleum Corp., which has a stock-market value of $44 billion, operates in shale-rock formations across the U.S. and is in the early stages of building a massive plant to export gas from Mozambique. Another is BG Group PLC, with a $32 billion stock-market value, which is a major player in shipping natural gas globally and is exploring potentially giant oil prospects in the deep waters off the coast of Brazil.

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Five years ago, an energy rout even worse than the current crude-oil plunge sent natural-gas prices down 70% in a year. That is when Exxon Mobil Corp. snapped up XTO Energy Inc., one of the biggest U.S. gas producers, for $25 billion in stock.

Now the nosedive in oil prices is again creating Exxon's favorite hunting conditions, as less-well-heeled companies struggle with shrinking cash flow.

With its ability to borrow cheaply -- Exxon has a higher credit rating than the U.S. government -- analysts say the company is capable of swallowing any rival, regulatory obstacles aside. And the company has amassed a hoard of its own shares that boost its takeover power.

A blockbuster deal is far from a sure thing. Irving, Texas-based Exxon would have to go after a big target to meaningfully boost its oil and gas reserves, its inventory of fuels that it can pump at a profit.

Acquiring another of the world's biggest oil companies, such as BP PLC, would create an oil company of a size without modern precedent. Already, big oil companies have struggled with managing the logistics of their largest projects, from developments in Canada's oil sands to liquefied natural-gas plants.

"The idea that bigger is better I don't think holds water," said Amy Myers Jaffe, executive director of energy and sustainability at the University of California-Davis. "The megaprojects haven't panned out for shareholders."

Even so, Wall Street is already speculating on which company Exxon will woo during this downturn. BP "is the obvious fit," Paul Sankey, senior analyst at Wolfe Research, wrote in a report earlier this last week. Buying London-based BP, which is still dealing with the fallout of the 2010 Deepwater Horizon disaster, "would close out a damaged brand at a terrific price" and bolster Exxon's capacity to find new sources of oil and gas.

Other potentially attractive targets singled out by analysts include a smaller tier of companies, which have discovered huge deposits of oil and gas but may lack the cash flow to develop them quickly.

Among them is Anadarko Petroleum Corp., which has a stock-market value of $44 billion, operates in shale-rock formations across the U.S. and is in the early stages of building a massive plant to export gas from Mozambique. Another is BG Group PLC, with a $32 billion stock-market value, which is a major player in shipping natural gas globally and is exploring potentially giant oil prospects in the deep waters off the coast of Brazil.

BP and BG declined to comment. An Anadarko spokesman said the company doesn't comment on rumors.

Exxon declined to comment on potential acquisitions. Last week, Jeff Woodbury, the company's head of investor relations, told analysts it is "very alert to value propositions," adding that "we'll pursue only those acquisitions that we think have ultimate strategic value and are accretive to our longer-term returns."

Exxon has a history of doing transformative deals during times of distress in the energy industry. It bought Mobil Corp. for about $82 billion in stock in 1999 amid a period of prolonged low oil prices.

But it may be wary of another deal like XTO, which has dented its profits because U.S. natural-gas prices have remained low.

Today Exxon has few peers big enough to boost its output or profits in a meaningful way. It already produces 2.3% of the world's oil, and refines 11.5% of the gasoline and other fuels in the U.S. If combined with Chevron Corp., the next largest Western oil company by stock-market value, they would supply 4% of global oil, and 17% of American refining output.

Such a merger, which would reunite the two biggest pieces of the former Standard Oil empire, might not pass muster with U.S. regulators, some analysts say.

Exxon has another tradition -- buying up its own shares. It has spent $197 billion on buybacks since 2005, more than double what it has paid in dividends and about 65% of its investment in oil and gas projects over that time. It plans to spend $1 billion buying back its shares in the first quarter of the year, down from a rate of $3 billion a quarter since 2013.

The shares go into Exxon's treasury and can be reissued to make acquisitions. Its treasury shares are worth about $353 billion. Exxon's stock rose 2% to $92.37 in 4 p.m. trading.

Buying back shares shrinks the number available to the public and can increase their value. Exxon has said it buys back shares only after funding oil-and-gas projects that offer a high return, and after paying dividends.

Exxon's swollen treasury testifies to the difficulty of improving its profit margins -- and, perhaps, to the rich stock-market values of rivals. The downdraft in oil prices is changing that.

An index of 21 U.S.-based oil and gas producers is down about 25% from a year ago. Exxon, more resilient to lower prices, is down about 3%.

"Given the financial strength of the company and given the distress of the rest of the industry, this is a situation that is tailor made for" Exxon, said J. Robinson West, a senior adviser at the Center for Strategic and International Studies, a Washington, D.C.-based research institution.

But that doesn't mean it should acquire another major oil company, he adds. That "doesn't do them much good," he said. "It just makes them bigger."

Credit: By Daniel Gilbert

Subject: Acquisitions & mergers; Petroleum industry; Oil reserves; Cash flow; Corporate profits; Prices; Natural gas; Natural gas reserves

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 9190: United States; 8510: Petroleum industry; 3400: Investment analysis & personal finance

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2015

Publication date: Feb 13, 2015

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1654868272

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1654868272?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Big Investors Place Energy Bets (For and Against); Buffett, Soros sell off Exxon Mobil stakes; Paulson wagers on Talisman

Author: Das, Anupreeta; Benoit, David

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Feb 2015: n/a.

ProQuest document link

Abstract:

[...]Point held five million shares worth about $359 million as of Dec. 31, according to a regulatory filing.

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Major investors made striking bets with their energy holdings in the fourth quarter amid a collapse in the price of oil.

Warren Buffett's Berkshire Hathaway Inc. and George Soros's Soros Fund Management sold off all their shares in Exxon Mobil Corp. as of Dec. 31, while hedge-fund manager John Paulson made a new bet with 70 million shares in Talisman Energy Inc. valued at $549.1 million.

The disclosures were made Tuesday in a regulatory filing required of investors who manage more than $100 million.

Oil prices have plunged from north of $100 a barrel in June to roughly half that level now, the victim of a growing surplus brought on by booming U.S. production and weaker-than-expected demand. The volatility in prices has given investors opportunities to bet on further declines or a sharp rebound.

Berkshire sold about 41 million shares of Exxon, having initially disclosed its ownership of the stock in the third quarter of 2013 and adding to it slightly in later quarters. The nearly $4 billion position made Berkshire one of Exxon's largest shareholders. Exxon, the biggest U.S. oil company, said earlier this month it was looking for ways to cut costs as profit fell during the fourth quarter.

The Omaha, Neb., conglomerate also sold off a small position in ConocoPhillips and cut its stake in National Oilwell Varco Inc., an oil-and-gas drilling- equipment maker, by about 18%. However, it increased stakes in two other energy-sector companies, Phillips 66 and Canadian oil-sands company Suncor Energy Inc.

Mr. Paulson, who made his name during the 2008 financial crisis betting against the housing market, wasn't entirely bullish on energy. He exited from Athalon Energy and pared back his holdings in Oasis Petroleum Inc. even as his ownership of Whiting Petroleum Corp. rose nearly 44% due to its December acquisition of another company where Mr. Paulson had a 26 million-share stake.

Others who took similar steps away from energy include New York hedge fund Jana Partners LLC and David Einhorn's Greenlight Capital Inc., according to filings Tuesday and last Friday.

Greenlight sold out of BP PLCAnadarko Petroleum Corp. and National Oilwell Varco, while Jana Partners exited from stakes in oil-and-gas producer Apache Corp. and other companies where it had been pushing changes. It had called for Apache to sell its international assets and concentrate on drilling in the U.S.

Daniel Loeb's Third Point LLC exited some of its energy holdings even as it also loaded up on other names.

One of its biggest new positions was in refinery company Phillips 66. Third Point held five million shares worth about $359 million as of Dec. 31, according to a regulatory filing. And Third Point also took new positions in Rice Midstream Partners LP and Cobalt International Energy Inc.

"We are looking to add exposure during market dislocations," Third Point said in a letter to investors earlier this month.

Write to Anupreeta Das at anupreeta.das@wsj.com and David Benoit at david.benoit@wsj.com

Credit: By Anupreeta Das And David Benoit

Subject: Petroleum industry; Acquisitions & mergers; Investments

Location: United States--US

People: Buffett, Warren Soros, George

Company / organization: Name: Greenlight Capital Inc; NAICS: 523120; Name: Oasis Petroleum Inc; NAICS: 211111; Name: Suncor Energy Inc; NAICS: 211111, 213112; Name: Talisman Energy Inc; NAICS: 211111; Name: National Oilwell Varco Inc; NAICS: 333132; Name: Third Point LLC; NAICS: 523920; Name: Apache Corp; NAICS: 324110, 211111, 213112; Name: Jana Partners LLC; NAICS: 523930; Name: Whiting Petroleum Corp; NAICS: 211111; Name: Soros Fund Management; NAICS: 523930; Name: Berkshire Hathaway Inc; NAICS: 442210, 445292, 511110, 511130, 524126, 335210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Feb 18, 2015

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1655606665

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1655606665?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Global Finance: Buffett, Soros Sell Off Shares In Exxon

Author: Das, Anupreeta; Benoit, David

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]18 Feb 2015: C.3.

ProQuest document link

Abstract:

[...]Point held five million shares worth about $359 million as of Dec. 31, according to a regulatory filing.

Links: 360 Link to Full Text

Full text:  

Major investors made striking bets with their energy holdings in the fourth quarter amid a collapse in the price of oil.

Warren Buffett's Berkshire Hathaway Inc. and George Soros's Soros Fund Management sold off all their shares in Exxon Mobil Corp. as of Dec. 31, while hedge-fund manager John Paulson made a new bet with 70 million shares in Talisman Energy Inc. valued at $549.1 million.

The disclosures were made Tuesday in a regulatory filing required of investors who manage more than $100 million.

Oil prices have plunged from north of $100 a barrel in June to roughly half that level now, the victim of a growing surplus brought on by booming U.S. production and weaker-than-expected demand. The volatility in prices has given investors opportunities to bet on further declines or a sharp rebound.

Berkshire sold about 41 million shares of Exxon, having initially disclosed its ownership of the stock in the third quarter of 2013 and adding to it slightly in later quarters. The nearly $4 billion position made Berkshire one of Exxon's largest shareholders. Exxon, the biggest U.S. oil company, said earlier this month it was looking for ways to cut costs as profit fell during the fourth quarter.

The Omaha, Neb., conglomerate also sold off a small position in ConocoPhillips and cut its stake in National Oilwell Varco Inc., an oil-and-gas drilling- equipment maker, by about 18%. However, it increased stakes in two other energy-sector companies, Phillips 66 and Canadian oil-sands company Suncor Energy Inc.

Mr. Paulson, who made his name during the 2008 financial crisis betting against the housing market, wasn't entirely bullish on energy. He exited from Athalon Energy and pared back his holdings in Oasis Petroleum Inc. even as his ownership of Whiting Petroleum Corp. rose nearly 44% due to its December acquisition of another company where Mr. Paulson had a 26 million-share stake.

Others who took similar steps away from energy include New York hedge fund Jana Partners LLC and David Einhorn's Greenlight Capital Inc., according to filings Tuesday and last Friday.

Greenlight sold out of BP PLC, Anadarko Petroleum Corp. and National Oilwell Varco, while Jana Partners exited from stakes in oil-and-gas producer Apache Corp. and other companies where it had been pushing changes. It had called for Apache to sell its international assets and concentrate on drilling in the U.S.

Daniel Loeb's Third Point LLC exited some of its energy holdings even as it also loaded up on other names.

One of its biggest new positions was in refinery company Phillips 66. Third Point held five million shares worth about $359 million as of Dec. 31, according to a regulatory filing.

Credit: By Anupreeta Das and David Benoit

Subject: Petroleum industry; Investment policy; Statistical data

Location: United States--US

People: Buffett, Warren Soros, George Paulson, John

Company / organization: Name: Greenlight Capital Inc; NAICS: 523120; Name: Oasis Petroleum Inc; NAICS: 211111; Name: Suncor Energy Inc; NAICS: 211111, 213112; Name: Talisman Energy Inc; NAICS: 211111; Name: BP PLC; NAICS: 447110, 324110, 211111; Name: National Oilwell Varco Inc; NAICS: 333132; Name: Third Point LLC; NAICS: 523920; Name: Apache Corp; NAICS: 324110, 211111, 213112; Name: Anadarko Petroleum Corp; NAICS: 211111; Name: Jana Partners LLC; NAICS: 523930; Name: Whiting Petroleum Corp; NAICS: 211111; Name: Soros Fund Management; NAICS: 523930; Name: Berkshire Hathaway Inc; NAICS: 442210, 445292, 511110, 511130, 524126, 335210; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 3400: Investment analysis & personal finance; 8130: Investment services; 8510: Petroleum industry; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: C.3

Publication year: 2015

Publication date: Feb 18, 2015

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1655688768

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1655688768?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Explosion at Exxon Mobil Refinery Raises Gas-Price Fears; If facility remains offline for long, local retail gas prices could rise to $3.25 a gallon, an analyst says

Author: Ailworth, Erin; Sider, Alison

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Feb 2015: n/a.

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Abstract:

Reports from workers indicated the problem may have started at the refinery's fluid catalytic cracking unit, according to Dave Campbell, secretary and treasurer of the United Steelworkers Union Local 675.

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An explosion at Exxon Mobil Corp.'s refinery in Torrance, Calif., on Wednesday sparked worries the facility could remain offline for months, pushing up local spot gasoline prices.

Spot prices for California gas rose nearly 12 cents to close at $2.01, said Tom Kloza, global head of energy analysis at the Oil Price Information Service. "I think the market is telling you they expect that unit to be down through April," he said, adding that if the refinery remains out of service for that long, retail gas prices could rise to as much as $3.25 a gallon, from a recent average in California of about $2.80.

Exxon said the explosion at its refinery about 20 miles south of Los Angeles happened just before 9 a.m. local time. The company said it is investigating the cause of the incident.

Reports from workers indicated the problem may have started at the refinery's fluid catalytic cracking unit, according to Dave Campbell, secretary and treasurer of the United Steelworkers Union Local 675. The union has 274 members at the refinery.

Exxon's plant isn't one of the nine refineries where workers are currently on strike in a standoff between the industry and the United Steelworkers union that is currently in its third week.

Police and fire authorities in Torrance initially asked those in the area to shelter-in-place as ash floated through the air and shut down a nearby street. Four contract workers were taken to Long Beach Medical Center with minor injuries.

"I think we got lucky with this one," said David Dumais, deputy fire chief of the Torrance Fire Department. He said the explosion caused a small ground fire that was quickly extinguished and caused a small gasoline leak on plant property.

Write to Erin Ailworth at Erin.Ailworth@wsj.com and Alison Sider at alison.sider@wsj.com

Credit: By Erin Ailworth and Alison Sider

Subject: Steel industry; Petroleum industry; Price increases; Fires; Explosions; Gasoline prices; Strikes

Location: California Los Angeles California

Company / organization: Name: United Steelworkers of America; NAICS: 813930; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Feb 18, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1655867323

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1655867323?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Exxon Mobil Adds More To Reserves In 2014; World's biggest oil company adds proven reserves totaling 1.5 billion oil-equivalent barrels

Author: Dulaney, Chelsey

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Feb 2015: n/a.

ProQuest document link

Abstract:

The world's biggest oil company said it added proven reserves totaling 1.5 billion oil-equivalent barrels, of which 1.2 billion barrels consisted of petroleum and other liquids and 300 million barrels of natural gas.

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Exxon Mobil Corp. added more oil and gas to its reserves than it produced in 2014, with most of the new reserves coming from Canada.

The world's biggest oil company said it added proven reserves totaling 1.5 billion oil-equivalent barrels, of which 1.2 billion barrels consisted of petroleum and other liquids and 300 million barrels of natural gas.

In the U.S., Exxon said it added more than 580 million oil-equivalent barrels from oil-rich shales including the Woodford, Permian, and Bakken, which have been the fastest-growing oil fields in the world. About 700 million barrels of oil equivalent came from Canada.

At the end of last year, Exxon's proved reserves were made up of 54% liquids, up one percentage point from a year earlier, and 46% natural gas.

Exxon added back as new reserves about 104% of the oil and gas it produced. Excluding the impact of asset sales, reserve additions last year replaced 111% of output.

The results come as Exxon moves to conserve cash in a sign that it doesn't expect a quick rebound in crude prices. Prices have plummeted since last summer as a glut of crude from U.S. producers has disrupted the global oil market.

Despite generating $87.3 billion in revenue last year, Exxon's cash flow in the last three months of 2014 fell to its lowest level since recession-wracked 2009. Earlier this month, the company said it would cut share buybacks by $1 billion this quarter, saving about $2 billion as it searches for ways to cut costs.

Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com

Credit: By Chelsey Dulaney

Subject: Oil reserves; Natural gas reserves; Petroleum industry; Natural gas

Location: United States--US Canada

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Feb 23, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1657296885

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1657296885?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Actavis Sells $21 Billion of Bonds; Yield-hungry investors fuel the second-biggest corporate offering ever; Exxon in $8 billion issue

Author: Cherney, Mike

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Mar 2015: n/a.

ProQuest document link

Abstract:

At $21 billion, Actavis's bond was second only to Verizon Communications Inc., which completed a $49 billion sale in September 2013 to finance the buyout of its wireless joint venture with Vodafone Group PLC. Other large bond sales in recent years include two by Apple Inc., one by Medtronic Inc. and two by Roche Holding AG. Underscoring the booming market for new bonds, Exxon Mobil Corp. also tapped the market on Tuesday and increased the size of its planned bond sale to $8 billion from $7 billion.

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Actavis PLC sold the second-biggest corporate-bond offering in history Tuesday, with a $21 billion deal fueled by investors' desire for returns amid low interest rates.

The giant sale by the pharmaceutical group comes as highly rated companies this year are selling debt at the fastest pace on record, extending a multiyear boom that has financed a flurry of deal making and enabled companies to buy back billions of dollars of stock.

Actavis, one of the world's largest generic-drug companies, plans to use the money to help pay for its $66 billion acquisition of Botox maker Allergan Inc. The deal comes on the heels of an $8 billion bond sale by Merck & Co., which planned to use the cash to buy Cubist Pharmaceuticals Inc.

The large debt sale from Actavis underscores how investors are buying up income-generating investments when yields on safe government debt remain low. Corporate bonds pay more yield than safe government debt to compensate for the greater risk that investors won't get paid back.

The Actavis bond sale received about $90 billion in investor orders, according to a person tracking the sale. The demand allowed the banks selling the bonds to lower the yields, or the interest rates to be paid by the company.

In a sign of the strong demand, the prices of the bonds immediately rose when they began trading early Tuesday afternoon. Some analysts attributed the demand in part to overseas buyers, noting that bond yields are generally lower in Europe.

"U.S. corporations are offering attractive yields when you look globally," said Collin Martin, senior research analyst at the Schwab Center for Financial Research. "The search for yield continues."

Among the new bonds, a 10-year Actavis issue was priced to yield 3.843%, or 1.75 percentage points more than Treasurys of similar maturity, while a 30-year Actavis bond was priced to yield 4.783%, or 2.10 percentage points more than Treasurys.

In comparison, a 2044 bond backed by Perrigo Co., another pharmaceutical company, traded Tuesday at a yield of 4.474%, or 1.80 percentage points more than Treasurys, according to data from MarketAxess.

At $21 billion, Actavis's bond was second only to Verizon Communications Inc., which completed a $49 billion sale in September 2013 to finance the buyout of its wireless joint venture with Vodafone Group PLC. Other large bond sales in recent years include two by Apple Inc., one by Medtronic Inc. and two by Roche Holding AG.

Underscoring the booming market for new bonds, Exxon Mobil Corp. also tapped the market on Tuesday and increased the size of its planned bond sale to $8 billion from $7 billion. But the deal didn't attract as much buzz as it once would have.

"There's been some sizable deals, so when Exxon comes with $7 billion, it doesn't really rock the boat much," said Alan Shepard, a portfolio manager at Madison Investment Advisors, which oversees roughly $17 billion.

The sales haven't been confined to firms making large acquisitions. Microsoft Corp. sold $10.75 billion of debt last month and Apple sold $6.5 billion, with both saying they could use the money for share repurchases.

Investors say they expect the sales to continue as long as the U.S. economy continues to grow, global growth avoids a sharp slowdown and central banks around the world continue to pursue policies that keep interest rates low in a bid to support economic expansion.

"What's behind that all is an incredibly low cost of capital, driven by the interest-rate environment that we're in," said Tom DeMarco, market strategist at Fidelity Capital Markets.

Supporting the warm corporate-sales environment is a roaring rally in ultrasafe government bonds. In the U.S., the 10-year Treasury note yields 2.12%, down from 3% at the end of 2013. Yields fall when prices rise. The Federal Reserve has kept benchmark interest rates near zero since the financial crisis, in a bid to stimulate the economy.

Some investors expect the Fed to raise rates later this year. Such a move could increase borrowing costs for companies and could cool bond sales, although Wall Street has been wrongly predicting that long-term rates would rise for much of the past 18 months. What's more, some corporations might seek to tap the market before rates move up even further.

"We're generally expecting another strong year of issuance, similar to what we've seen for the past couple of years," said Joseph Mayo, head of credit research at asset manager Conning, which oversees $94 billion, mainly for insurance companies.

Conning purchased some of the new Actavis bonds on Tuesday, and Mr. Mayo said the bonds offered more yield than debt from similar companies. He also cited the company's commitment to pay down debt quickly.

Write to Mike Cherney at mike.cherney@wsj.com

Credit: By Mike Cherney

Subject: Acquisitions & mergers; Pharmaceutical industry; Interest rates; Sales; Treasuries

People: Martin, Collin

Company / organization: Name: Vodafone Group PLC; NAICS: 517210; Name: Perrigo Co; NAICS: 325412, 325620; Name: Cubist Pharmaceuticals Inc; NAICS: 325412; Name: Actavis PLC; NAICS: 325412; Name: Merck & Co Inc; NAICS : 325411, 325412; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Medtronic Inc; NAICS: 334510, 339112; Name: Apple Inc; NAICS: 511210, 334111, 334220; Name: Verizon Communications Inc; NAICS: 517110, 517210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Mar 4, 2015

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1660202423

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Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Actavis Sells $21 Billion In Bond Deal --- Yield-hungry investors fuel the second-biggest corporate offering ever; Exxon in $8 billion issue

Author: Cherney, Mike

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]04 Mar 2015: C.1.

ProQuest document link

Abstract:

At $21 billion, Actavis' bond was second only to Verizon Communications Inc., which completed a $49 billion sale in September 2013 to finance the buyout of its wireless joint venture with Vodafone Group PLC. Other large bond sales in recent years include two by Apple Inc., one by Medtronic Inc. and two by Roche Holding AG. Underscoring the booming market for new bonds, Exxon Mobil Corp. also tapped the market on Tuesday and increased the size of its planned bond sale to $8 billion from $7 billion.

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Actavis PLC sold the second-biggest corporate-bond offering in history Tuesday, with a $21 billion deal fueled by investors' desire for returns amid low interest rates.

The giant sale by the pharmaceutical group comes as highly rated companies this year are selling debt at the fastest pace on record, extending a multiyear boom that has financed a flurry of deal making and enabled companies to buy back billions of dollars of stock.

Actavis, one of the world's largest generic-drug companies, plans to use the money to help pay for its $66 billion acquisition of Botox maker Allergan Inc. The deal comes on the heels of an $8 billion bond sale by Merck & Co., which planned to use the cash to buy Cubist Pharmaceuticals Inc.

The large debt sale from Actavis underscores how investors are buying up income-generating investments when yields on safe government debt remain low. Corporate bonds pay more yield than safe government debt to compensate for the greater risk that investors won't get paid back.

The Actavis bond sale received about $90 billion in investor orders, according to a person tracking the sale. The demand allowed the banks selling the bonds to lower the yields, or the interest rates to be paid by the company.

In a sign of the strong demand, the prices of the bonds immediately rose when they began trading early Tuesday afternoon. Some analysts attributed the demand in part to overseas buyers, noting that bond yields are generally lower in Europe.

"U.S. corporations are offering attractive yields when you look globally," said Collin Martin, senior research analyst at the Schwab Center for Financial Research. "The search for yield continues."

Among the new bonds, a 10-year Actavis issue was priced to yield 3.843%, or 1.75 percentage points more than Treasurys of similar maturity, while a 30-year Actavis bond was priced to yield 4.783%, or 2.10 percentage points more than Treasurys.

In comparison, a 2044 bond backed by Perrigo Co., another pharmaceutical company, traded Tuesday at a yield of 4.474%, or 1.80 percentage points more than Treasurys, according to data from MarketAxess.

At $21 billion, Actavis' bond was second only to Verizon Communications Inc., which completed a $49 billion sale in September 2013 to finance the buyout of its wireless joint venture with Vodafone Group PLC. Other large bond sales in recent years include two by Apple Inc., one by Medtronic Inc. and two by Roche Holding AG.

Underscoring the booming market for new bonds, Exxon Mobil Corp. also tapped the market on Tuesday and increased the size of its planned bond sale to $8 billion from $7 billion. But the deal didn't attract as much buzz as it once would have.

"There's been some sizable deals, so when Exxon comes with $7 billion, it doesn't really rock the boat much," said Alan Shepard, a portfolio manager at Madison Investment Advisors, which oversees roughly $17 billion.

The sales haven't been confined to firms making large acquisitions. Microsoft Corp. sold $10.75 billion of debt last month and Apple sold $6.5 billion, with both saying they could use the money for share repurchases.

Investors say they expect the sales to continue as long as the U.S. economy continues to grow, global growth avoids a sharp slowdown and central banks around the world continue to pursue policies that keep interest rates low in a bid to support economic expansion.

"What's behind that all is an incredibly low cost of capital, driven by the interest-rate environment that we're in," said Tom DeMarco, market strategist at Fidelity Capital Markets.

Supporting the warm corporate-sales environment is a roaring rally in ultrasafe government bonds. In the U.S., the 10-year Treasury note yields 2.12%, down from 3% at the end of 2013. Yields fall when prices rise. The Federal Reserve has kept benchmark interest rates near zero since the financial crisis.

Some investors expect the Fed to raise rates later this year. Such a move could increase borrowing costs for companies and could cool bond sales, although Wall Street has been wrongly predicting that long-term rates would rise for much of the past 18 months.

"We're generally expecting another strong year of issuance," said Joseph Mayo, head of credit research at asset manager Conning, which oversees $94 billion, mainly for insurance companies. Conning purchased some of the new Actavis bonds on Tuesday, and Mr. Mayo said the bonds offered more yield than debt from similar companies. He also cited the company's commitment to pay down debt quickly.

Credit: By Mike Cherney

Subject: Acquisitions & mergers; Pharmaceutical industry; Interest rates; Treasuries; Bond markets; Corporate debt; Credit markets (wsj)

Company / organization: Name: Vodafone Group PLC; NAICS: 517210; Name: Perrigo Co; NAICS: 325412, 325620; Name: Cubist Pharmaceuticals Inc; NAICS: 325412; Name: Merck & Co Inc; NAICS: 325411, 325412; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Medtronic Inc; NAICS: 334510, 339112; Name: Apple Inc; NAICS: 511210, 334111, 334220; Name: Verizon Communications Inc; NAICS: 517110, 517210; Name: Allergan Inc; NAICS: 325412, 339113; Name: Actavis PLC; NAICS: 325412

Classification: 3400: Investment analysis & personal finance; 8641: Pharmaceuticals industry; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: C.1

Publication year: 2015

Publication date: Mar 4, 2015

column: Credit Markets

Publisher: Dow Jones & Company Inc

Place of publication: New Y ork, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1660297871

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1660297871?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Mobil to Reduce Capital Spending 12% in 2015; Company becomes the latest oil producer to trim its budget

Author: Chen, Angela

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Mar 2015: n/a.

ProQuest document link

Abstract:

Exxon joins more than four dozen U.S. energy producers that have announced plans to curb capital spending in 2015 by more than $50 billion compared with last year's budgets, according to a review of company records by The Wall Street Journal.

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Exxon Mobil Corp. said Wednesday it would slash its capital spending budget by 12% to $34 billion.

Despite paring this year's expenditures by $4.5 billion, the company still plans to boost oil and gas production volumes and start pumping fuel from 16 major projects over the next three years.

Exxon joins more than four dozen U.S. energy producers that have announced plans to curb capital spending in 2015 by more than $50 billion compared with last year's budgets, according to a review of company records by The Wall Street Journal. Few have cut more in overall dollars than Exxon Mobil, which is one of the biggest spenders in the industry.

The company said weeks ago that it would sharply reduce its stock buybacks in the near term to help preserve cash amid slumping oil prices. Other big oil companies have been dialing back spending, too. Chevron plans to cut its capital expenditures even more than Exxon, trimming $5 billion from its budget. And BP PLCis cutting its capital and exploration budget nearly 20% , down to $20 billion.

Many smaller independent U.S. producers have outlined plans for deep cuts, as well. ConocoPhillips in January said it would cut its capital budget by 15% to $11.5 billion ; the cuts were a second round after the company said in December it would shave 20% from its 2015 budget.

Exxon Chief Executive Rex Tillerson said the company's long-term capital allocation approach hasn't changed, but annual capital and exploration expenditures are expected to average less than $34 billion from 2016 to 2017.

Exxon's strategy is resilient through commodity price swings, management said ahead of the company's analyst meeting Wednesday. Exxon plans to increase oil and natural gas production by 2% this year, driven by a 7% increase in liquid volumes. The company is ramping up seven new projects this year in places like Canada, Indonesia and Angola. In 2016 and 2017, new development will be focused on projects in Australia, Russia and the United Arab Emirates.

Erin Ailworth contributed to this article.

Write to Angela Chen at angela.chen@dowjones.com

Credit: By Angela Chen

Subject: Budgets; Petroleum industry; Capital expenditures

Location: United States--US

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Mar 4, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1660464537

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1660464537?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Overheard: Exxon's Modest Ambition

Author: Anonymous

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Mar 2015: n/a.

ProQuest document link

Abstract:

The oil major's analyst meeting on Wednesday was the 13th one straight to be hosted at the New York Stock Exchange.

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Exxon Mobil prides itself on consistency. The oil major's analyst meeting on Wednesday was the 13th one straight to be hosted at the New York Stock Exchange. CEO Rex Tillerson is told that this makes Exxon's meeting the longest-running at the venue.

Exxon evidently hopes to echo this with its latest strategic outlook. It plans to cut investment this year by about 12% to a still chunky $34 billion. That underpins a plan to grow production by 2.4% a year to 4.3 million barrels of oil equivalent per day by 2017.

That would mark a turnaround given that production has dropped since 2011. Still, it is modest by historical standards: Output in 2017 will be only slightly higher than in 2006, when Mr. Tillerson took the helm.

One constituency won't be pleased: oil-field services firms. With oil prices lower, Exxon aims to raise output while keeping its budget in check. One way it aims to do this is by negotiating better terms, with Mr. Tillerson saying "we expect lower contractor fees." Expect Exxon to stick with that message.

Subject: Petroleum industry; Oil reserves

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: New York Stock Exchange--NYSE; NAICS: 523210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Mar 4, 2015

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1660535960

Document URL: https://login.ezproxy. uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1660535960?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Mobil: Shale to the Chief; Falling costs in U.S. shale drilling present a major headwind to oil price rallies

Author: Denning, Liam

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Mar 2015: n/a.

ProQuest document link

Abstract:

Yet Mr. Tillerson pointed out that the collapse in natural-gas prices similarly had led the number of rigs drilling for that fuel to drop to 280 from north of 1,600 in 2008.

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Full text:  

Sometimes, it's what doesn't happen that really counts.

The relentless rise in U.S. oil inventories continues. Indeed, tanks at Cushing--the big pipeline hub in Oklahoma--are two-thirds full already, according to Energy Department data released this week. Think of that as a giant bucket filling up above the heads of oil investors.

But there is an even bigger bucket out there: Big Oil.

On the same day the inventory figures came out, Exxon Mobil was giving its annual strategy presentation in New York. And Chief Executive Rex Tillerson had some pretty bearish things to say on oil.

In particular, while he didn't see a perfect parallel between shale gas and shale oil, he said there were "lessons" to be learned. The drop in oil prices has prompted 39% of U.S. oil rigs to be idled since October, stoking expectations of a rebound in the market.

Yet Mr. Tillerson pointed out that the collapse in natural-gas prices similarly had led the number of rigs drilling for that fuel to drop to 280 from north of 1,600 in 2008. Gas output jumped 50% in that time, he said. That is what you call resilience.

The more insidious message concerned what Exxon hadn't been doing in recent years: namely, ramping up its own North American shale-oil output. In 2010, Exxon plunged into shale with the acquisition of XTO Energy. Back then, it had about 12 rigs drilling in three big shale basins, the Permian, the Woodford and the Bakken. Five years on, that has risen, but only to about 45, the company says.

Why such gradualism? Rather than chase near-term cash flow, Mr. Tillerson said Exxon has been putting itself through shale class, learning "how to get the most out of these rocks in the most cost-efficient way."

That represents a bearish trend that will weigh on oil prices for years to come. Exxon says its costs in the Bakken have dropped by 20% to 25%. So, many prospects that made sense at $100-a-barrel oil still make sense now, the company says.

This gives Exxon, along with its peers, a base of resources from which it can grow production profitably. That is even if, as now, lower oil prices force delays in advancing the big ticket, multiyear projects such as liquefied natural gas that the majors are usually known for. Indeed, roughly half the increase in output that Exxon targets by 2017 is expected to come from U.S. onshore wells.

Exxon isn't alone. The smaller companies making up the exploration and production sector were the true shale pioneers. And while as of Feb. 20 the E&P sector had slashed capital-expenditure budgets by 39% on average, according to Tudor, Pickering, Holt, output is still expected to rise by 5% this year.

Inventories should be a concern for investors right now. But it is the marriage of shale resources with the likes of Exxon's long-standing focus on cutting costs that presents the bigger headwind to oil rallies.

Write to Liam Denning at liam.denning@wsj.com

Credit: By Liam Denning

Subject: Petroleum industry; Inventory; Natural gas; Oil reserves

Location: United States--US Oklahoma New York

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: XTO Energy Inc; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Mar 5, 2015

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1660678661

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1660678661?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

New Jersey's Exxon Settlement Set For More Scrutiny; Legislators, Environmentalists Question State's $225 Million Settlement

Author: Dawsey, Josh

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Mar 2015: n/a.

ProQuest document link

Abstract:

"Apparently, this administration took it out of the hands of the career attorneys handling toxic contamination cases for the attorney general and the Department of Environmental Protection and had the governor's office engineer a depleted settlement," Sen. Lesniak said Thursday.

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New Jersey's proposed $225 million settlement with Exxon Mobil Corp. for years of environmental damage came under scrutiny Thursday, as legislators and environmentalists called for separate probes and rejection of the deal.

During a court battle spanning a decade, state officials had argued for $8.9 billion. Exxon officials called that unreasonable. The Christie administration defended the settlement Thursday and released some details.

"This important settlement, which came about because this administration aggressively pushed the case to trial, is the result of long fought settlement negotiations that pre-dated and post-dated the trial," Attorney General John Hoffman said.

The settlement is subject to approval by a state judge after a 30-day comment period.

The state called the damage "staggering and unprecedented," citing environmental experts and others in the litigation. A judge had been expected to rule on damages later this year. Mr. Christie's administration sought a delay while it apparently negotiated with Exxon.

Officials on both sides hadn't expected the state to score the full $8.9 billion. But many questioned on Thursday whether New Jersey whether New Jersey had settled too cheaply.

Senator Raymond Lesniak, a Democrat who represents the area, vowed to challenge the settlement "every step of the way" until the state got what he called "just compensation" for damage done by the company's Bayway and Bayonne refineries to more than 1,500 acres of wetlands, meadows and waterways.

"Apparently, this administration took it out of the hands of the career attorneys handling toxic contamination cases for the attorney general and the Department of Environmental Protection and had the governor's office engineer a depleted settlement," Sen. Lesniak said Thursday.

The Christie administration said the settlement was the largest environmental settlement in the state's history and that it was committed to the environment.

The settlement came within a year of Exxon Mobil giving $500,000 to the Republican Governors Association, which Mr. Christie led in 2014, trumpeting its record fundraising numbers.

While the company has long given to the organization, its 2014 donation was its second highest annual donation to the group. In the past, Exxon has often given $200,000 or less to the organization per year, though it gave $625,000 in 2010.

The donations far exceeded what the company gave to the Democratic Governors Association, according to federal filings.

An Exxon spokesman said the donations had nothing to do with Mr. Christie leading the group and reflected a number of competitive gubernatorial races in 2014. The spokesman also said the company gave more to Republicans than Democrats because it generally agreed with the GOP more on policy.

Mr. Christie's office didn't respond to a request for comment on the donations.

Critics noted Mr. Christie blocked legislative attempts to require the state to use all settlement funds to repair the environment. Only the first $50 million is tagged for the remediation; the remainder is to go toward balancing the state budget.

The governor faces a challenging budget cycle as he eyes 2016, with pressure from Democrats to raise taxes for the broke transportation trust fund. He has paid less than promised into the state's pension system because of lagging revenues.

The state said it wouldn't receive any of the Exxon money until 2016.

Bradley Campbell, a former commissioner of New Jersey's Department of Environmental Protection, said on Thursday Mr. Christie's top lawyer interfered in the case and pushed aside longtime officials who had worked on the case. Christopher Porrino, the attorney, also traveled with Mr. Christie for RGA duties. In a release, Mr. Christie's administration said the governor's office consulted on the case. Mr. Porrino didn't respond to a request for comment.

State Senate President Stephen Sweeney, a Democrat, said federal investigators should probe whether Mr. Christie's office interfered with the attorney general's negotiations and that lawmakers were seeking related documents.

"If what is alleged took place, than this is much bigger than any kind litigation and its subject matter for Paul Fishman," Mr. Sweeney said during an unrelated press call Thursday. "We have to dig down to the bottom of it."

Kevin Roberts, a spokesman for the governor, called the criticism "absurd and baseless," noting Mr. Campbell's Democratic affiliation.

Heather Haddon contributed to this article

Credit: By Josh Dawsey

Subject: Governors; Environmental protection; Litigation; Settlements & damages; State budgets; Donations

Location: New Jersey

Company / organization: Name: Democratic Governors Association; NAICS: 813940

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Mar 5, 2015

Section: US

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1660744856

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1660744856?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

New Jersey's Exxon Settlement Questioned; Legislators, environmentalists seek probes of proposed $225 million settlement

Author: Dawsey, Josh

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Mar 2015: n/a.

ProQuest document link

Abstract:

"Apparently, this administration took it out of the hands of the career attorneys handling toxic contamination cases for the attorney general and the Department of Environmental Protection and had the governor's office engineer a depleted settlement," Mr. Lesniak said.

Links: 360 Link to Full Text

Full text:  

New Jersey's proposed $225 million settlement with Exxon Mobil Corp. for environmental damage came under scrutiny on Thursday, as legislators and environmentalists called for investigations and a rejection of the deal.

Gov. Chris Christie's administration said it aggressively pushed the case to trial and the deal "is the result of long-fought settlement negotiations that pre-dated and post-dated the trial."

During a court battle spanning a decade, state officials argued for $8.9 billion to pay for damages, a figure that Exxon officials called unreasonable. The settlement is subject to approval by a state judge after a 30-day comment period.

Sen. Raymond Lesniak, a Democrat from northern New Jersey, vowed to challenge the settlement until the state received "just compensation" for damage by the company's Bayway and Bayonne refineries to more than 1,500 acres of wetlands, meadows and waterways.

"Apparently, this administration took it out of the hands of the career attorneys handling toxic contamination cases for the attorney general and the Department of Environmental Protection and had the governor's office engineer a depleted settlement," Mr. Lesniak said.

The Christie administration said the deal with Exxon was the largest environmental settlement in state history and that it is committed to the environment.

The settlement came within a year of Exxon Mobil donating $500,000 to the Republican Governors Association, which Mr. Christie led in 2014. While the energy firm has long given to the organization, its 2014 donation was its second-highest annual donation to the group.

In the past, Exxon has often given $200,000 or less to the organization a year, though it gave $625,000 in 2010.

The donations far exceeded what the company gave to the Democratic Governors Association, according to federal filings.

An Exxon spokesman said the donations had nothing to do with Mr. Christie's leadership of the group and reflected a number of competitive gubernatorial races in 2014. The spokesman also said the company gave more to Republicans than Democrats because it generally agreed with the GOP more on policy.

Mr. Christie's office and a spokesman for the Republican Governors Association didn't respond to requests for comment on Exxon's donations.

Critics noted Mr. Christie blocked legislative attempts to require the state to use all settlement funds to repair the environment. The first $50 million is tagged for the remediation; the remainder is to go toward balancing the state budget.

The governor faces a challenging budget cycle as he eyes a 2016 presidential run, with pressure from Democrats to raise taxes for the state's depleted transportation trust fund.

The state said it wouldn't receive any of the Exxon money until 2016.

Bradley Campbell, a former commissioner of New Jersey's Department of Environmental Protection, said Thursday that Mr. Christie's top lawyer pushed aside longtime officials who had worked on the case. The attorney, Chris Porrino, didn't respond to a request for comment.

Kevin Roberts, a spokesman for the governor, called the criticism, which Mr. Campbell also made in an op-ed article in the New York Times, "absurd and baseless," noting Mr. Campbell's Democratic affiliation.

State Senate President Stephen Sweeney, a Democrat, said federal investigators should probe whether Mr. Christie's office interfered with the negotiations and that lawmakers were seeking related documents.

"If what is alleged took place, than this is much bigger than any kind litigation and its subject matter for Paul Fishman," Mr. Sweeney said, referring to the U.S. attorney for New Jersey.

A spokesman for Mr. Fishman said his office hadn't received a formal request to look into the matter and had no further comment.

Assembly Democrats plan a March 19 hearing on the proposed deal. Assemblyman John McKeon, head of the Judiciary Committee, said he has invited Mr. Campbell to testify, along with Mr. Porrino, officials from the state attorney general's office, Exxon executives and former state officials.

Heather Haddon contributed to this article.

Write to Josh Dawsey at Joshua.Dawsey@dowjones.com

Credit: By Josh Dawsey

Subject: Governors; Settlements & damages; Environmental protection; Litigation; Political parties; Attorneys; State budgets; Donations

Location: New Jersey

Company / organization: Name: Republican Party; NAICS: 813940; Name: Republican Governors Association; NAICS: 813940; Name: Democratic Governors Association; NAICS: 813940

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Mar 6, 2015

Section: US

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1660810909

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1660810909?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Mobil's Message for the Oil Market: Shale to the Chief

Author: Denning, Liam

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]06 Mar 2015: C.8.

ProQuest document link

Abstract:

Yet Mr. Tillerson pointed out that the collapse in natural-gas prices similarly had led the number of rigs drilling for that fuel to drop to 280 today from north of 1,600 in 2008.

Links: 360 Link to Full Text

Full text:  

[Financial Analysis and Commentary]

Sometimes, it's what doesn't happen that really counts.

The relentless rise in U.S. oil inventories continues. Indeed, tanks at Cushing -- the big pipeline hub in Oklahoma -- are two-thirds full already, according to Energy Department data released this week. Think of that as a giant bucket filling up above oil investors' heads.

But there is an even bigger bucket out there: Big Oil.

On the same day the inventory figures came out, Exxon Mobil was giving its annual strategy presentation in New York. And Chief Executive Rex Tillerson had some pretty bearish things to say on oil.

In particular, while he didn't see a perfect parallel between shale gas and shale oil, he said there were "lessons" to be learned. The drop in oil prices has prompted 39% of U.S. oil rigs to be idled since October, stoking expectations of a rebound in the market.

Yet Mr. Tillerson pointed out that the collapse in natural-gas prices similarly had led the number of rigs drilling for that fuel to drop to 280 today from north of 1,600 in 2008. Yet gas output jumped 50% in that time, he said. That is what you call resilience.

The more insidious message concerned what Exxon hadn't been doing in recent years: namely, ramping up its own North American shale-oil output. In 2010, Exxon plunged into shale with the acquisition of XTO Energy. Back then, it had about 12 rigs drilling in three big shale basins, the Permian, the Woodford and the Bakken. Five years on, that has risen, but only to about 45, the company says.

Why such gradualism? Rather than chase near-term cash flow, Mr. Tillerson said Exxon has been putting itself through shale class, learning "how to get the most out of these rocks in the most cost-efficient way."

That represents a bearish development that will weigh on oil prices for years to come. Exxon says its costs in the Bakken have dropped by 20% to 25%. So, many prospects that made sense at $100-a-barrel oil still make sense now, the company says.

This gives Exxon, along with its peers, a base of resources from which it can grow production profitably. That is even if, as now, lower oil prices force delays in advancing the big ticket, multiyear projects such as liquefied natural gas that the majors are usually known for. Indeed, roughly half the increase in output that Exxon targets by 2017 is expected to come from U.S. onshore wells.

Exxon isn't alone. The smaller companies making up the exploration and production sector were the true shale pioneers. And while as of Feb. 20 the E&P sector had slashed capital-expenditure budgets by 39% on average, according to Tudor, Pickering, Holt, output is still expected to rise by 5% this year.

Inventories should be a concern for investors right now. But it is the marriage of shale resources with the likes of Exxon's longstanding focus on cutting costs that presents the bigger headwind to oil rallies.

View Image - Enlarge this image.

Credit: By Liam Denning

Subject: Petroleum industry; Inventory; Natural gas; Oil reserves

Location: United States--US Oklahoma New York

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: XTO Energy Inc; NAICS: 211111

Classification: 9190: United States; 8510: Petroleum industry

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: C.8

Publication year: 2015

Publication date: Mar 6, 2015

column: Heard on the Street

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1660875513

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1660875513?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Questions Raised on N.J.-Exxon Settlement

Author: Dawsey, Josh

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]06 Mar 2015: A.15.

ProQuest document link

Abstract:

"Apparently, this administration took it out of the hands of the career attorneys handling toxic contamination cases for the attorney general and the Department of Environmental Protection and had the governor's office engineer a depleted settlement," Mr. Lesniak said.

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New Jersey's proposed $225 million settlement with Exxon Mobil Corp. for environmental damage came under scrutiny Thursday, as legislators and environmentalists called for investigations and a rejection of the deal.

Gov. Chris Christie's administration said it aggressively pushed the case to trial and that the deal "is the result of long-fought settlement negotiations that pre-dated and post-dated the trial."

During a court battle spanning a decade, state officials argued for $8.9 billion to pay for damages, a figure that Exxon officials called unreasonable. The settlement is subject to approval by a state judge after a 30-day comment period.

Sen. Raymond Lesniak, a Democrat from northern New Jersey, vowed to challenge the settlement until the state received "just compensation" for damage by the company's Bayway and Bayonne refineries to more than 1,500 acres of wetlands, meadows and waterways.

"Apparently, this administration took it out of the hands of the career attorneys handling toxic contamination cases for the attorney general and the Department of Environmental Protection and had the governor's office engineer a depleted settlement," Mr. Lesniak said.

The Christie administration said the deal with Exxon was the largest environmental settlement in state history and that it is committed to the environment.

The settlement came within a year of Exxon Mobil donating $500,000 to the Republican Governors Association, which Mr. Christie led in 2014. While the energy firm has long given to the organization, its 2014 donation was its second-highest annual donation to the group.

In the past, Exxon has often given $200,000 or less to the organization a year, though it gave $625,000 in 2010.

The donations far exceeded what the company gave to the Democratic Governors Association, according to federal filings.

An Exxon spokesman said the donations had nothing to do with Mr. Christie's leadership of the group and reflected a number of competitive gubernatorial races in 2014. The spokesman also said the company gave more to Republicans than Democrats because it generally agreed with the GOP more on policy.

Mr. Christie's office and a spokesman for the Republican Governors Association didn't respond to requests for comment on Exxon's donations.

Critics noted Mr. Christie blocked legislative attempts to require the state to use all settlement funds to repair the environment. The first $50 million is tagged for the remediation; the remainder is to go toward balancing the state budget.

The governor faces a challenging budget cycle as he eyes a 2016 presidential run, with pressure from Democrats to raise taxes for the state's depleted transportation trust fund.

The state said it wouldn't receive any of the Exxon money until 2016.

Bradley Campbell, a former commissioner of New Jersey's Department of Environmental Protection, said Thursday that Mr. Christie's top lawyer pushed aside longtime officials who had worked on the case. The attorney, Chris Porrino, didn't respond to a request for comment.

Kevin Roberts, a spokesman for the governor, called the criticism, which Mr. Campbell also made in an op-ed article in the New York Times, "absurd and baseless," noting Mr. Campbell's Democratic affiliation.

State Senate President Stephen Sweeney, a Democrat, said federal investigators should probe whether Mr. Christie's office interfered with the negotiations and that lawmakers were seeking related documents.

"If what is alleged took place, than this is much bigger than any kind litigation and its subject matter for Paul Fishman," Mr. Sweeney said, referring to the U.S. attorney for New Jersey.

A spokesman for Mr. Fishman said his office hadn't received a formal request to look into the matter and had no further comment.

Assembly Democrats plan a March 19 hearing on the proposed deal. Assemblyman John McKeon, head of the Judiciary Committee, said he has invited Mr. Campbell to testify, along with Mr. Porrino, officials from the state attorney general's office, Exxon executives and former state officials.

---

Heather Haddon contributed to this article.

Credit: By Josh Dawsey

Subject: Settlements & damages; Environmental protection; Litigation; Political parties; State budgets

Location: New Jersey

People: Christie, Christopher J

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.15

Publication year: 2015

Publication date: Mar 6, 2015

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1660875844

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1660875844?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohib ited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Suit Highlights Energy Cost Fears; Oil giant alleges Russian venture suffered from platform contractor's mistakes

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Mar 2015: n/a.

ProQuest document link

Abstract:

The troubles likely would have remained out of public view had Exxon not sued contractor WorleyParsons Ltd. The spat offers a rare glimpse of the challenges and sniping behind one of the world's most complicated oil developments as soaring costs and falling crude prices have bedeviled the energy industry.

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When Exxon Mobil Corp. in January started pulling oil from beneath the icebound waters off Russia's eastern coast, the project was over budget and a year behind schedule. The troubles likely would have remained out of public view had Exxon not sued contractor WorleyParsons Ltd.

The spat offers a rare glimpse of the challenges and sniping behind one of the world's most complicated oil developments as soaring costs and falling crude prices have bedeviled the energy industry.

The project, known as Arkutun-Dagi, called for building one of the largest offshore drilling platforms in the world, designed to withstand extreme winds, waves and earthquakes that shake the seabed beneath the icy Sea of Okhotsk. Oil began flowing in January, and is expected to reach up to 90,000 barrels a day.

Exxon claims the Australian contractor made so many mistakes designing the platform that the work took 2.7 million man-hours more than originally estimated and delayed the project by a year, according to a lawsuit in the Supreme Court of New York.

"The scope of WorleyParsons' errors is staggering," Exxon said in its complaint, citing pipes that didn't fit together and gaps between the platform's walls and the deck floor, contending defects were hidden so the firm could land another contract with Exxon.

WorleyParsons denies this, saying Exxon's complaint "is replete with unfounded, spurious allegations." The contractor says it didn't commit to a fixed deadline or price, and that Exxon "decided to retain the risks of cost overruns and delays rather than pay" WorleyParsons to bear them.

A New York judge sided with WorleyParsons' request for an international arbitration panel last July. WorleyParsons said the arbitration hasn't begun yet.

Exxon declined to comment on the overall cost of the project. The company said in court filings it paid WorleyParsons more than $550 million, and claims it is owed a refund for work the contractor did to fix mistakes. WorleyParsons says it is owed $20 million more.

Fran van Reyk, a spokeswoman for WorleyParsons, said the dispute is limited to the Russian mega project and hasn't affected its other work for Exxon.

Delays and cost overruns in recent years have heightened tensions between companies like Exxon and the contractors they hire to design and build massive energy installations. But experts say it has been uncommon for big oil companies and their engineering contractors, which work together around the world, to sue each other.

"It's very unusual to actually have a dispute go all the way to litigation," said Edward Merrow, president of Independent Project Analysis Inc., which consults for energy companies that operate big projects. Mr. Merrow declined to comment on specific projects but said that the industry in general is ailing from a shortage of experienced energy hands even as companies pursue harder-to-reach oil deposits.

"I think we'll see more litigation in part because we're going to see more important, glaring engineering errors," he said.

The stumbles at Arkutun-Dagi are relatively mild compared with other projects, such as a venture in Kazakhstan's Caspian Sea that is more than $30 billion over budget and has yet to cough up oil in meaningful amounts. But even a yearlong delay can have a significant impact on the profitability of a big project. When Exxon announced the startup of Arkutun-Dagi in January, oil sold for about $50 a barrel. A year ago, when the project was originally supposed to start pumping crude, a barrel of oil fetched more than twice as much.

The Arkutun-Dagi oil field lies beneath the shallow, ice-choked waters about 15 miles from the shores of Sakhalin Island in Russia's Far East. To tap it, Exxon ordered up a platform weighing more than 200,000 tons. Four cylindrical legs anchor into the seabed and rise above the water's surface, supporting a series of decks that house a drilling rig and crew quarters.

WorleyParsons' job was to design the top of the platform.

WorleyParsons, which brought in more than $7 billion in revenue last year, has worked for Exxon around the globe, from Alaska's North Slope to Papua New Guinea. After the firm started designing the platform top for Arkutun-Dagi, Exxon hired it in August 2010 to do a similar job for another offshore project, a $14 billion venture in Canada to tap oil off the coast of Newfoundland called Hebron.

Soon after, Exxon began complaining to WorleyParsons of delays, budget increases and staff turnover on the Arkutun-Dagi work. "After promising to use its 'A' team and all necessary resources when pursuing the project, WorleyParsons staffed the project with its 'C' team and used substandard resources," Exxon alleges.

WorleyParsons denies this, saying the project took longer largely because Exxon increased the scope of work required. From the beginning, Exxon "took a hands-on approach," the contract says, including reviewing the resumes and interviewing every WorleyParsons employee working on Arkutun-Dagi. Exxon even installed 100 of its own workers in the Houston offices of WorleyParsons' affiliates, often sitting a few feet away from the contractors they managed.

While WorleyParsons' contract required it to fix errors at no cost, the firm claims Exxon never notified it of deficiencies. As evidence of its good performance, the contractor cites Exxon's award to design a platform for the Hebron project, adding that the company specifically requested some of the same personnel that worked on Arkutun-Dagi. Exxon expects to start pumping oil from its Hebron project in 2017.

Write to Daniel Gilbert at daniel.gilbert@wsj.com

Credit: By Daniel Gilbert

Subject: Petroleum industry; Litigation; Offshore drilling

Location: Russia New York

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Mar 9, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1661262494

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1661262494?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

MoneyBeat: Exxon Mobil Slips Back

Author: Kingsbury, Kevin

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Mar 2015: n/a.

ProQuest document link

Abstract:

According to S&P Dow Jones Indices' Howard Silverblatt, the last time Exxon finished the year outside the top three in the market-cap rankings was in 1999, when it was fifth.

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$315.19 billion: The market capitalization of Exxon Mobil Corp., putting it closer to dropping to the fourth-largest U.S.-listed company.

For nearly all of the past decade, Exxon Mobil Corp. has ranked first- or second-largest by market capitalization.

With the tumble in oil prices, Exxon's perch among U.S.-listed companies has become precarious. The oil-and-gas giant's market capitalization fell 3.3% last week to $359.19 billion and is down 8.8% since Feb. 17.

Exxon's slide over that period first allowed Google Inc. to pass it on Feb. 26. Berkshire Hathaway briefly moved past Exxon intraday for No. 3 Friday, but finished the day just a tick below Exxon at $358.77 billion.

According to S&P Dow Jones Indices' Howard Silverblatt, the last time Exxon finished the year outside the top three in the market-cap rankings was in 1999, when it was fifth. Then, Microsoft Corp. topped the charts at $604 billion and Exxon was No. 5 at $278 billion.

Exxon's standing among the largest companies that trade publicly on U.S. markets has been under pressure the past three months as the price of oil slid. Late last year Microsoft moved Exxon out of second. It was the first time in a decade Exxon wasn't first or second. Microsoft, though, sold off sharply after its quarterly report in January, falling to fifth by market cap. It's currently around $347.5 billion.

Credit: By Kevin Kingsbury

Subject: Petroleum industry; Statistical data

Location: United States--US

Company / organization: Name: Microsoft Corp; NAICS: 511210, 334614; Name: Berkshire Hathaway Inc; NAICS: 442210, 445292, 511110, 511130, 524126, 335210; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Google Inc; NAICS: 519130

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Mar 9, 2015

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1661264399

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1661264399?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Moving the Market -- MoneyBeat: Exxon Mobil Slips Back

Author: Kingsbury, Kevin

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]09 Mar 2015: C.2.

ProQuest document link

Abstract:

According to S&P Dow Jones Indices' Howard Silverblatt, the last time Exxon finished the year outside the top three in the market-cap rankings was in 1999, when it was fifth.

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Full text:  

For nearly all of the past decade, Exxon Mobil Corp. has ranked first- or second-largest by market capitalization.

With the tumble in oil prices, Exxon's perch among U.S.-listed companies has become precarious. The oil-and-gas giant's market capitalization fell 3.3% last week to $359.19 billion and is down 8.8% since Feb. 17.

Exxon's slide over that period first allowed Google Inc. to pass it on Feb. 26. Berkshire Hathaway briefly moved past Exxon intraday for No. 3 Friday, but finished the day just a tick below Exxon at $358.77 billion.

According to S&P Dow Jones Indices' Howard Silverblatt, the last time Exxon finished the year outside the top three in the market-cap rankings was in 1999, when it was fifth. Then, Microsoft Corp. topped the charts at $604 billion and Exxon was No. 5 at $278 billion.

Exxon's standing among the largest companies that trade publicly on U.S. markets has been under pressure the past three months. Late last year Microsoft moved Exxon out of second. It was the first time in a decade Exxon wasn't first or second. Microsoft, though, sold off sharply after its quarterly report in January, falling to fifth by market cap.

Credit: By Kevin Kingsbury

Subject: Petroleum industry

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 9190: United States; 3400: Investment analysis & personal finance; 8510: Petroleum industry

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: C.2

Publication year: 2015

Publication date: Mar 9, 2015

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1661301622

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1661301622?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Law Journal: Drilling Partnership Turns Icy --- Faraway fight between Exxon, a rig contractor is brought into the light by cost-overrun lawsuit

Author: Gilbert, Daniel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]09 Mar 2015: B.5.

ProQuest document link

Abstract:

The troubles likely would have remained out of public view had Exxon not sued contractor WorleyParsons Ltd. The spat offers a rare glimpse of the challenges and sniping behind one of the world's most complicated oil developments as soaring costs and falling crude prices have bedeviled the energy industry.

Links: 360 Link to Full Text

Full text:  

When Exxon Mobil Corp. in January started pulling oil from beneath the icebound waters off Russia's eastern coast, the project was over budget and a year behind schedule. The troubles likely would have remained out of public view had Exxon not sued contractor WorleyParsons Ltd.

The spat offers a rare glimpse of the challenges and sniping behind one of the world's most complicated oil developments as soaring costs and falling crude prices have bedeviled the energy industry.

The project, known as Arkutun-Dagi, called for building one of the largest offshore drilling platforms in the world, designed to withstand extreme winds, waves and earthquakes that shake the seabed beneath the icy Sea of Okhotsk. Oil began flowing in January, and is expected to reach up to 90,000 barrels a day.

Exxon claims the Australian contractor made so many mistakes designing the platform that the work took 2.7 million man-hours more than originally estimated and delayed the project by a year, according to a lawsuit in the Supreme Court of New York.

"The scope of WorleyParsons' errors is staggering," Exxon said in its complaint, citing pipes that didn't fit together and gaps between the platform's walls and the deck floor, contending defects were hidden so the firm could land another contract with Exxon.

WorleyParsons denies this, saying Exxon's complaint "is replete with unfounded, spurious allegations." The contractor says it didn't commit to a fixed deadline or price, and that Exxon "decided to retain the risks of cost overruns and delays rather than pay" WorleyParsons to bear them.

A New York judge sided with WorleyParsons' request for an international arbitration panel last July. WorleyParsons said the arbitration hasn't begun yet.

Exxon declined to comment on the overall cost of the project. The company said in court filings it paid WorleyParsons more than $550 million, and claims it is owed a refund for work the contractor did to fix mistakes. WorleyParsons says it is owed $20 million more.

Fran van Reyk, a spokeswoman for WorleyParsons, said the dispute is limited to the Russian mega project and hasn't affected its other work for Exxon.

Delays and cost overruns in recent years have heightened tensions between companies like Exxon and the contractors they hire to design and build massive energy installations. But experts say it has been uncommon for big oil companies and their engineering contractors, which work together around the world, to sue each other.

"It's very unusual to actually have a dispute go all the way to litigation," said Edward Merrow, president of Independent Project Analysis Inc., which consults for energy companies that operate big projects. Mr. Merrow declined to comment on specific projects but said that the industry in general is ailing from a shortage of experienced energy hands even as companies pursue harder-to-reach oil deposits.

When Exxon announced the startup of Arkutun-Dagi in January, oil sold for about $50 a barrel. A year ago, when the project was originally supposed to start pumping crude, a barrel of oil fetched more than twice as much.

The Arkutun-Dagi oil field lies beneath the shallow, ice-choked waters about 15 miles from the shores of Sakhalin Island in Russia's Far East. To tap it, Exxon ordered up a platform weighing more than 200,000 tons. Four cylindrical legs anchor into the seabed and rise above the water's surface, supporting a series of decks that house a drilling rig and crew quarters.

WorleyParsons' job was to design the top of the platform.

WorleyParsons, which brought in more than $7 billion in revenue last year, has worked for Exxon around the globe, from Alaska's North Slope to Papua New Guinea. After the firm started designing the platform top for Arkutun-Dagi, Exxon hired it in August 2010 to do a similar job for another offshore project, a $14 billion venture in Canada to tap oil off the coast of Newfoundland called Hebron.

Soon after, Exxon began complaining to WorleyParsons of delays, budget increases and staff turnover on the Arkutun-Dagi work. "After promising to use its 'A' team and all necessary resources when pursuing the project, WorleyParsons staffed the project with its 'C' team and used substandard resources," Exxon alleges.

WorleyParsons denies this, saying the project took longer largely because Exxon increased the scope of work required. From the beginning, Exxon "took a hands-on approach," the contract says, including reviewing the resumes and interviewing every WorleyParsons employee working on Arkutun-Dagi.

While WorleyParsons' contract required it to fix errors at no cost, the firm claims Exxon never notified it of deficiencies. As evidence of its good performance, the contractor cites Exxon's award to design a platform for the Hebron project, adding that the company specifically requested some of the same personnel that worked on Arkutun-Dagi. Exxon expects to start pumping oil from its Hebron project in 2017.

Credit: By Daniel Gilbert

Subject: Petroleum industry; Offshore drilling; Litigation

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: WorleyParsons Ltd; NAICS: 541330

Classification: 9180: International; 4330: Litigation; 8510: Petroleum industry

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.5

Publication year: 2015

Publication date: Mar 9, 2015

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1661301677

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1661301677?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Chris Christie's Oil Windfall; The real scandal in the Exxon settlement isn't the $225 million payday.

Author: Anonymous

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Mar 2015: n/a.

ProQuest document link

Abstract:

Since the sites could never be returned to Eden, the state charged Exxon $6.4 billion--an arbitrary figure calculated by a consultant--to compensate the public for "loss of use" to resources that the public never had.

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Liberals claim to be outraged that Chris Christie settled a decade-long environmental lawsuit against Exxon Mobil for what they say is pennies on the dollar. The real scandal is that the Governor has exploited a dubious prosecution to backfill the New Jersey budget.

Last week the Christie administration announced a $225 million settlement with Exxon over $8.9 billion in claims for natural-resource damage at the sites of its former refineries in Bayonne and Bayway. Democrats claim Mr. Christie struck a corrupt bargain that shortchanged the state, but the truth is that the Governor reaped more than the state deserved or a court likely would have awarded.

The Bayonne and Bayway sites, which were once wetlands, have accumulated chemical discharges dating to before Exxon's predecessor Standard Oil. The state was then giving away its wetland for development.

Fast forward a century. In 1991 Exxon entered into a consent order with the state to clean up the sites, which are now owned by Phillips 66 and International-Matex Tank Terminals (IMTT). In return the state agreed not to pursue more claims for historic damages, a promise that appears to have been as good as the word of any Jersey politician.

In 2002 the state began a blunderbuss legal campaign to retroactively dun businesses for "loss of use" damages under the state's 1976 Spill Compensation and Control Act. The goal was to coerce businesses into financing environmental projects as reparations for depriving the public of their use--never mind that the state had ages ago privatized many of these "public" resources.

To make their jobs easier, Democrats farmed out the legal work to private firms, whose attorney fees and consultants are paid by the state and get a cut of the recoveries. In 2004 Exxon was slapped with a lawsuit but didn't roll over like its peers, including Chevron ($1 million settlement) and DuPont ($1.8 million). In 2005 IMTT paid $3 million to fund water quality improvements in Bayonne.

The state tried to browbeat Exxon into a settlement by charging $2.5 billion for the costs of restoring Bayonne and Bayway to a pre-industrial state that had never existed. The Department of Environmental Protection's quarter-baked restoration plan involved transforming historic intertidal wetlands into palustrine meadows. It also removed critical flood protection.

Since the sites could never be returned to Eden, the state charged Exxon $6.4 billion--an arbitrary figure calculated by a consultant--to compensate the public for "loss of use" to resources that the public never had. These funds would purportedly go to replace 33,320 acres of natural habitat around the state.

The state's case became even more dubious last year when Mr. Christie signed a budget channeling all recoveries over $50 million from natural-resource lawsuits into the general fund. In other words, the state was shaking down Exxon for $8.9 billion to pay for public-worker pensions. Even New Jersey's liberal judges might balk at that fleecing.

Mr. Christie's $225 million deal with Exxon still represents the biggest environmental settlement in state history. Liberals are upset that a mere $50 million will fund environmental projects, some $45 million will cover legal costs and the rest will shore up pensions. Mr. Christie is merely distributing the spoils according to the priorities of his union-dominated state.

Subject: Settlements & damages

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Mar 11, 2015

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1662259622

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1662259622?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

American Express to Launch Loyalty Program with Macy's, Exxon, AT&T; The program, Plenti, will operate similar to drugstore-rewards programs

Author: Dulaney, Chelsey

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 Mar 2015: n/a.

ProQuest document link

Abstract:

American Express Co. unveiled plans Wednesday to team up with big-name companies such as Macy's Inc. and Exxon Mobil Corp. to launch a loyalty program this spring, the latest move by the credit card company to appeal to a wider customer base.

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American Express Co. unveiled plans Wednesday to team up with big-name companies such as Macy's Inc. and Exxon Mobil Corp. to launch a loyalty program this spring, the latest move by the credit card company to appeal to a wider customer base.

The program, called Plenti, will operate similar to drugstore-rewards programs, allowing customers to earn points by making purchases at the seven participating companies, which also include AT&T Inc., Rite Aid Corp. and Hulu. The idea is that users can use points they earn by paying their AT&T Wireless bill to pay for their purchases at Rite Aid.

AmEx, which issues credit and charge cards and owns a processing network, will operate the program, collecting fees from the partner companies.

The announcement comes as AmEx prepares for the end of its 16-year relationship with Costco Wholesale Corp. after the two couldn't agree on terms. The unusual partnership, in which Costco exclusively accepted AmEx cards, had driven a significant chunk of business to the New York card company.

Once seen as a status symbol for the affluent, AmEx is under attack from competitors like J.P. Morgan that are also going after wealthy Americans. AmEx is now trying to expand into other areas, such as pitching prepaid cards for low-end consumers, but that strategy will likely take years to pay off.

AmEx also has branding agreements with companies such as Delta Air Lines Inc. Such partnerships, called "co-brands," are established to build loyalty among specific types of customers. Cardholders often receive extra perks when they use co-branded cards, while card companies and the merchant typically see higher levels of spending on those cards.

Abeer Bhatia, chief executive of AmEx's U.S. loyalty division, said Plenti is unique because it draws on a network of merchants that many U.S. consumers shop at every day, allowing users to build up points faster than they would for an airline or single-merchant rewards program. Mr. Bhatia noted Plenti users will be able to use any form of payment, not just American Express cards.

"We want to be a much more welcoming brand," said Mr. Bhatia. "This helps us to do that."

Mr. Bhatia said AmEx has put more than two years into developing the concept. The company operates similar programs abroad in countries including Poland, Germany and Italy, some of which have grown to include dozens of merchants.

The merchants participating in Plenti are also hoping to get a sales bump from their participation.

Macy's, for example, has struggled with a tepid retail environment in recent quarters and is exploring new concepts--such as a bargain version of its namesake department stores--to expand its reach. Martine Reardon, Macy's marketing chief, said she hopes Plenti will help the retailer attract new demographics, such as the millennial generation, and create more loyalty among existing customers.

"We're trying to see where the American consumer is going," said Ms. Reardon.

Exxon, meanwhile, is hoping to gain a competitive advantage by allowing customers to earn points filling up their gas tanks, buying convenience items and washing their cars. Exxon executive Michael Gore said the company has seen a "significant lift" in sales after implementing similar loyalty programs abroad.

AmEx expects to launch the program around May, while the company is also planning to introduce a co-branded card that would allow users to earn extra points in the future.

If all goes well, Mr. Bhatia said, AmEx could see a 'halo effect' from Plenti that could drive consumers to its credit cards.

Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com

Credit: By Chelsey Dulaney

Subject: Credit cards; Loyalty programs; Department stores

Company / organization: Name: AT & T Inc; NAICS: 517110, 517210; Name: JPMorgan Chase & Co; NAICS: 522110, 522292, 523110; Name: American Express Co; NAICS: 522210, 551111; Name: Macys Inc; NAICS: 445110, 452111; Name: Rite Aid Corp; NAICS: 446110; Name: Delta Air Lines Inc; NAICS: 481111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Costco Wholesale Corp; NAICS: 452910

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Mar 18, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N. Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1664051083

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1664051083?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Non-U.S. Shales Prove Difficult to Crack; Exxon, Shell and others are pulling back from once-promising shale finds in Europe, Asia

Author: Justin Scheckand Selina Williams

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Mar 2015: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:  

After spending more than five years and billions of dollars trying to re-create the U.S. shale boom overseas, some of the world's biggest oil companies are starting to give up amid a world-wide collapse in crude prices .

Chevron Corp., Exxon Mobil Corp. and Royal Dutch Shell PLC have packed up nearly all of their hydraulic fracturing wildcatting in Europe, Russia and China. The reasons vary from sanctions in Russia, a ban in France, a moratorium in Germany and poor results in Poland to crude prices below what it can cost to produce a barrel of shale oil.

Chevron halted its last European fracking operations in February when it pulled out of Romania. Shell said it is cutting world-wide shale spending by 30% in places including Turkey, Ukraine and Argentina. Exxon has pulled out of Poland and Hungary, and its German fracking operations are on hold.

The result: Outside the U.S., where fracking has produced a historic glut of oil, only China, Argentina and Canada have commercial shale production, the U.S. Energy Information Administration says, though America holds less than 10% of the world's estimated shale reserves. Europe, including Russia, and China alone have nearly triple the reserves of the U.S., according to the EIA.

"The pace of development outside North America is slower everywhere than people thought it would be," Simon Henry, Shell's chief financial officer, said in a recent interview.

A recovery in oil prices could change the equation, giving big companies more room to take risky bets on shale . And bright spots for shale prospectors outside North America still exist.

Regions of Argentina and Algeria appear to be "as good as the U.S.," says Faouzi Aloulou, an EIA project manager who analyzes shale prospects. Two French companies and a British firm are planning to drill in the U.K., where there is a debate over the practice's health and environmental effects. In Poland, small companies--the kind that pioneered the U.S. shale boom--are still drilling despite their big rivals' discouraging results.

"The publicity is bad, but the reality is it's going to be down to the smaller companies to prove the play, as they did in the U.S.," says Oisín Fanning, the executive chairman of San Leon Energy PLC, a U.K.-listed explorer that announced a commercial gas discovery in Poland in February and expects its first sales in early 2016.

Fracking works by using water, sand and chemicals to fracture underground rock and hold the cracks open, allowing oil and gas trapped in the rocks to flow. Unlike the long-term projects that the world's biggest oil companies specialize in, shale wells tend to have short lives, and developing a shale field requires drilling many holes over a short period.

The technology worked well for small producers in North America, but oil giants like Exxon and Shell, with their thick layers of management and slow drilling-approval processes, largely missed out on the profits there.

Knowing other countries had shale, the big companies last decade looked elsewhere to see if they could build a boom from scratch. Eastern European officials who were eager to wean their nations off Russian gas welcomed the explorers.

Chevron beginning late last decade invested in Romania, Lithuania and Poland, which some geologists and oil-business-development specialists said had Europe's most attractive shale potential.

"In Poland you had a mix of a higher resource estimate plus a government keen on promoting shale gas to reduce dependence on Russian gas," said Richard Sarsfield-Hall of Finnish consulting and engineering firm Pöyry.

But actual drilling results in Poland were disappointing.

Chevron kept drilling, even after the EIA in 2013 lowered its estimates of Poland's shale-gas reserve by about 20% and other producers like France's Total SA threw in the towel.

By 2014, Chevron's Eastern Europe bet wasn't looking good. It exited Lithuania last summer. Last fall, Romania's president said the country didn't appear to have any shale resources. Then, in January, Chevron said it had decided to leave Poland.

"Shale gas opportunities across Central and Eastern Europe do not compete with other opportunities within Chevron's global portfolio," a spokeswoman said. The company is still evaluating shale gas exploration in South Africa, a spokesman said..

ConocoPhillips is the only large oil company still working in Poland.

Exxon had similar letdowns in Hungary, which it left in 2009, and Poland, which it exited in 2012. Exxon's efforts in Germany have been thwarted by a fracking moratorium, and Western sanctions over Ukraine have kept it and other international oil companies from developing Russian shale.

Now, an Exxon spokesman says, the company's only ongoing non-North America shale exploration is in Argentina and Colombia.

One problem the companies have faced is the high cost of shale drilling outside the U.S. when oil prices are low. Exploration wells in new areas require experimentation and lack the economies of scale in a more developed area. Wells in Poland and China can cost up to $25 million each, while American wells on average cost about $5 million, said Melissa Stark, lead author of a 2014 shale report by Accenture LLP.

Shell first discussed shale exploration with Chinese officials in 2006, said people familiar with the matter. At the time, the Anglo-Dutch company was looking for shale resources around the world, and struck deals in Sweden, Turkey, Russia and Ukraine.

The Ukraine conflict and resulting sanctions derailed plans in Russia and Ukraine. Shell left Sweden in 2011 after exploration was unsuccessful. A Shell spokeswoman said the company is analyzing the results of wells drilled with a partner in Turkey, and is waiting to hear from the South African government about proceeding with shale projects there.

In China, Shell found shale gas in 2011. But problematic geology, infrastructure and local protests delayed progress, company officials and documents say. Last fall, Shell decided to pull back efforts there.

Ms. Stark of Accenture said countries with strong national oil companies such as China, Argentina and Saudi Arabia were more likely to lead shale development outside the U.S. They have a mandate to extract their countries' resources, government support, and lots of money.

"You need a player with deep pockets and who can be there for several years," she said. State-run companies "are there for the long term so they can invest for the long-term."

Write to Justin Scheck at justin.scheck@wsj.com and Selina Williams at selina.williams@wsj.com

Credit: By Justin Scheckand Selina Williams

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Mar 19, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1664366117

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1664366117?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Settlement in New Jersey Sparks Controversy; Environmental groups say the $225 million settlement is premature

Author: Haddon, Heather

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Apr 2015: n/a.

ProQuest document link

Abstract:

Officials at the state Department of Environmental Protection say DEP will then likely approve it and it will to go to a state Superior Court judge for a final decision.

Links: 360 Link to Full Text

Full text:  

The controversy surrounding a settlement with Exxon Mobil Corp. over years of contamination in New Jersey is likely to continue as environmental groups and state Democrats consider intervening in the case.

Gov. Chris Christie's administration unveiled details Monday of the $225 million settlement with the Texas company over environmental damage to New Jersey waterways and other sites across the state. New Jersey officials called the potential payout "historic," and said it preserves claims at former Exxon facilities for further investigation.

But environmental groups say the settlement is worse than they had feared, as it clears liabilities beyond the two Exxon sites originally in question. The agreement would end Exxon's responsibility for any pollution at 16 other facilities across the state and hundreds of gas stations previously owned by the company that has yet to be discovered. Possible damage at these additional facilities hasn't been fully studied, and absolving Exxon now is premature, environmental groups said.

"It raises a real question as to whether the taxpayers of New Jersey are getting a fair deal. And that's what we are going to explore going forward," said Mitch Bernard, director of litigation for the Natural Resources Defense Council, which is considering intervening in the case.

State officials estimate the cost of cleaning up the additional sites at $5 million, an amount they say doesn't justify further litigation over them.

The state also says the settlement preserves significant claims for contamination by a particular pollutant that has been discovered at the gas-station sites, and contamination still being investigated at the Newark Bay, a Gloucester County facility and at creek surrounding the Linden refinery.

The 41-page settlement published Monday could end a decadelong suit brought by successive New Jersey administrations to clean up contamination in northeast stretches of the state.

The state filed suit in 2004, arguing that contamination at Exxon's Bayway and Bayonne refineries spanned more than 1,500 acres of wetlands, meadows and waterways. Exxon's corporate ancestor, Standard Oil, started the facilities in 1909.

Publication of the settlement starts a 60-day public comment period on the proposed agreement. Officials at the state Department of Environmental Protection say DEP will then likely approve it and it will to go to a state Superior Court judge for a final decision.

Gov. Christie's administration has championed the agreement as the largest environmental payout in state history from one company accused of pollution. Exxon will spend a "substantial" amount cleaning up the old Bayway and Bayonne refineries, state officials said Monday.

"We have vigorously litigated this case for the good of the environment and for the people of New Jersey," said DEP Commissioner Bob Martin.

A spokesman for Exxon declined to comment Monday. In post-trial briefs, the company argued that the state had failed to prove that there was environmental damage at the refinery sites, something Exxon has never acknowledged, the DEP noted today.

Environmental groups have faulted the settlement for being far smaller than the $9 billion New Jersey officials originally sought. State Democrats held a Statehouse hearing on the case, and lawmakers on Monday said that they will likely intervene in Superior Court.

"This is a serious matter of public trust as well as corporate responsibility," said Senate President Steve Sweeney, the Legislature's ranking Democrat, in a statement.

After news of the settlement drew national attention last month, Mr. Christie defended it and said it had been unfairly characterized in public accounts. Residents have twice asked Mr. Christie to justify the settlement at recent town-hall meetings in New Jersey.

The settlement could haunt Mr. Christie, whose record as governor will be highly scrutinized if, as many expect, he enters the race for the GOP's 2016 presidential nomination. While few people understand the complex settlement, "it's the kind of story that will become potent if it's placed front and center," said Julian Zelizer, a professor of history and public affairs at Princeton University.

Write to Heather Haddon at heather.haddon@wsj.com

Credit: By Heather Haddon

Subject: Environmental protection; Settlements & damages; Litigation

Location: Texas New Jersey

Company / organization: Name: Natural Resources Defense Council; NAICS: 813312

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Apr 7, 2015

Section: US

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1669979284

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1669979284?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

City News: N.J.-Exxon Deal Likely to Remain A Battleground

Author: Haddon, Heather

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]07 Apr 2015: A.17.

ProQuest document link

Abstract:

Officials at the state Department of Environmental Protection say DEP will then likely approve it and it will to go to a state Superior Court judge for a final decision.

Links: 360 Link to Full Text

Full text:  

The controversy surrounding a settlement with Exxon Mobil Corp. over years of contamination in New Jersey is likely to continue as environmental groups and state Democrats consider intervening in the case.

Gov. Chris Christie's administration unveiled details Monday of the $225 million settlement with the Texas company over environmental damage to New Jersey waterways and other sites across the state. New Jersey officials called the potential payout "historic," and said it preserves claims at former Exxon facilities for further investigation.

But environmental groups say the settlement is worse than they had feared, as it clears liabilities beyond the two Exxon sites originally in question. The agreement would end Exxon's responsibility for any pollution at 16 other facilities across the state and hundreds of gas stations previously owned by the company that has yet to be discovered. Possible damage at these additional facilities hasn't been fully studied, and absolving Exxon now is premature, environmental groups said.

"It raises a real question as to whether the taxpayers of New Jersey are getting a fair deal. And that's what we are going to explore going forward," said Mitch Bernard, director of litigation for the Natural Resources Defense Council, which is considering intervening in the case.

State officials estimate the cost of cleaning up the additional sites at $5 million, an amount they say doesn't justify further litigation over them.

The state also says the settlement preserves significant claims for contamination by a particular pollutant that has been discovered at the gas-station sites, and contamination still being investigated at the Newark Bay, a Gloucester County facility and at creek surrounding the Linden refinery.

The 41-page settlement published Monday could end a decadelong suit brought by successive New Jersey administrations to clean up contamination in northeast stretches of the state.

The state filed suit in 2004, arguing that contamination at Exxon's Bayway and Bayonne refineries spanned more than 1,500 acres of wetlands, meadows and waterways. Exxon's corporate ancestor, Standard Oil, started the facilities in 1909.

Publication of the settlement starts a 60-day public comment period on the proposed agreement. Officials at the state Department of Environmental Protection say DEP will then likely approve it and it will to go to a state Superior Court judge for a final decision.

Gov. Christie's administration has championed the agreement as the largest environmental payout in state history from one company accused of pollution. Exxon will spend a "substantial" amount cleaning up the old Bayway and Bayonne refineries, state officials said Monday.

"We have vigorously litigated this case for the good of the environment and for the people of New Jersey," said DEP Commissioner Bob Martin.

A spokesman for Exxon declined to comment Monday. In post-trial briefs, the company argued that the state had failed to prove that there was environmental damage at the refinery sites, something Exxon has never acknowledged, the DEP noted today.

Environmental groups have faulted the settlement for being far smaller than the $9 billion New Jersey officials originally sought. State Democrats held a Statehouse hearing on the case, and lawmakers on Monday said that they will likely intervene in Superior Court.

Credit: By Heather Haddon

Subject: Environmental protection; Litigation; Settlements & damages; Service stations; Contamination

Location: Texas New Jersey

People: Christie, Christopher J

Company / organization: Name: Natural Resources Defense Council; NAICS: 813312; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 4330: Litigation; 8510: Petroleum industry; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.17

Publication year: 2015

Publication date: Apr 7, 2015

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1670074974

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1670074974?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Mobil CEO's Pay Valued at $33 Million; Rex Tillerson's compensation rose 18% in 2014 from the year before

Author: Chen, Angela

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Apr 2015: n/a.

ProQuest document link

Abstract:

In February, Irving, Texas-based Exxon Mobil, the biggest and richest U.S. oil company, reported that its quarterly profit dropped 21% as production declined.

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Exxon Mobil Corp. Chief Executive Rex Tillerson received compensation valued at $33 million last year, up 18% from $28 million given in 2013.

Mr. Tillerson saw his base salary increase slightly to $2.8 million from $2.7 million in 2013. His bonus and stock awards were largely the same. However, the value of Tillerson's pension benefits increased by $4.6 million, compared with 2013.

In February, Irving, Texas-based Exxon Mobil, the biggest and richest U.S. oil company, reported that its quarterly profit dropped 21% as production declined.

Despite generating $87.3 billion in revenue last year, Exxon's cash flow in the last three months of 2014 fell to its lowest level since recession-wracked 2009. The company said it would cut spending on share buybacks as it searches for ways to cut costs.

In comparison with Mr. Tillerson, Chevron Corp. CEO John S. Watson was given pay valued at $26 million in 2014, up about 8% from $24 million the year before. The biggest increase was also in Mr. Watson's pension benefits.

Write to Angela Chen at angela.chen@dowjones.com

Credit: By Angela Chen

Subject: Petroleum industry; Executive compensation

Location: United States--US

Company / organization: Name: Chevron Corp; NAICS: 324110, 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Apr 14, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1672902165

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1672902165?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon CEO Expects Oil Prices to Remain Low in Coming Years; Rex Tillerson says price declines will test the shale revolution's resiliency

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Apr 2015: n/a.

ProQuest document link

Abstract:

HOUSTON--The fall in oil prices is creating a crucible for the U.S. oil and gas business, testing the resiliency of the shale revolution, the chief executive of Exxon Mobil Corp. said Tuesday.

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HOUSTON--The fall in oil prices is creating a crucible for the U.S. oil and gas business, testing the resiliency of the shale revolution, the chief executive of Exxon Mobil Corp. said Tuesday.

Rex Tillerson, Exxon's CEO, said he expects oil prices to remain low over the next few years, cooling the frenzy of drilling in the U.S. But he pointed out that U.S. companies cut back on drilling for natural gas in recent years as the surge in supplies glutted the market and sent prices tumbling. Even so, natural gas output has continued to rise, he said, thanks in part to improvements in efficiency.

He suggested the situation for shale oil could be similar. "It is going to be very useful to the industry to have a clear understanding of the resiliency of these resources," Mr. Tillerson said at the IHS CERAWeek conference.

Daniel Yergin, vice chairman of IHS, asked Mr. Tillerson what he thought the energy industry would look like in the coming years. The man who runs one of the world's biggest energy companies demurred, saying only, "We will still be here."

Write to Daniel Gilbert at daniel.gilbert@wsj.com

Credit: By Daniel Gilbert

Subject: Energy industry; Petroleum industry; Energy policy; Natural gas

Location: United States--US

People: Gilbert, Daniel

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Apr 21, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1674477048

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1674477048?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Texas Orders Two Oil Firms to Prove Well Isn't Causing Earthquakes; XTO Energy, owned by Exxon, and EnerVest Ordered to Appear at Hearing

Author: Ailworth, Erin

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 Apr 2015: n/a.

ProQuest document link

Abstract:

Meantime, new scientific findings released Tuesday again linkedearthquakes to the practice of injecting wastewater from oil and gas operations deep underground, adding to a growing consensus among researchers that energy development is probably causing seismic activity in Oklahoma, Texas and other parts of the U.S. In October, the Texas Railroad Commission adopted regulations on wells used to dispose of drilling fluids.

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Texas regulators have ordered a subsidiary of Exxon Mobil Corp. and another company to prove that their wells near Fort Worth aren't causing earthquakes.

A study published this week by seismic researchers at Southern Methodist University in Dallas connected two wastewater disposal wells operated by XTO Energy Inc., which is owned by Exxon, and EnerVest Operating LLC, with a series of earthquakes in Azle, Texas. On Friday the Texas Railroad Commission, which regulates the state's oil and gas industry, told officials at both companies that they need to appear at hearings scheduled for June to justify why their wells shouldn't be shut down.

Azle, 17 miles northwest of Fort Worth, experienced a string of earthquakes between November 2013 and January 2014 that were most likely caused by high volumes of drilling wastewater injected deep into the ground as natural gas was pumped out, the study said.

The Railroad Commission of Texas said it is reviewing SMU's research.

The process of hydraulic fracturing, in which water, chemicals and sand are pumped into the ground under high pressure, results in large volumes of wastewater. Leftover wastewater is often pumped back underground into so-called disposal wells, which have been linked to earthquakes by several studies.

XTO said it looked forward to discussing the issue with regulators and university researchers. "We follow a protocol, a scientific-based protocol, when we site our disposal wells," said Suann Lundsberg, a spokeswoman for the company.

EnerVest cast doubt on the SMU study. "We have serious questions about some of the assumptions in the SMU paper, and we look forward to sharing these with the Commission," said Ron Whitmire, a company spokesman.

Critics of fracking have questioned whether the industry's practices are to blame for an increase in earthquake activity in states such as Texas.

Meantime, new scientific findings released Tuesday again linked earthquakes to the practice of injecting wastewater from oil and gas operations deep underground, adding to a growing consensus among researchers that energy development is probably causing seismic activity in Oklahoma, Texas and other parts of the U.S.

In October, the Texas Railroad Commission adopted regulations on wells used to dispose of drilling fluids. Under the rules, enacted to protect against possible earthquakes caused by the wells, a new disposal well can't be sited without an evaluation of data from the U.S. Geological Survey about the earthquake history within a 100-square-miles around the proposed site.

The new rules also give regulators the power to modify, suspend, or end a disposal well permit if scientific data show that it is contributing to earthquake activity, or is likely to do so.

The commission said those amended rules are one reason it is asking questions about the XTO and EnerVest wells.

"It is incumbent upon us to apply these rules where and when appropriate for the protection of public safety and our natural environment," said Christi Craddick, chair of the commission. "In light of SMU's study linking disposal well activity to earthquakes in 2013, it is important to assess this new information in relation to the continued operational safety of the wells."

The commission previously investigated whether these disposal wells near Azle were contributing to earthquakes, but didn't uncover evidence of a definitive connection.

Write to Erin Ailworth at Erin.Ailworth@wsj.com

Credit: By Erin Ailworth

Subject: Earthquakes; Petroleum industry; Railroads; Studies; Natural gas; Hydraulic fracturing

Location: Texas Fort Worth Texas

Company / organization: Name: XTO Energy Inc; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Apr 25, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1675442050

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1675442050?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Mobil Increases Dividend; Boost is expected to cost the company $167.6 million per quarter, and will be payable June 10

Author: Chen, Angela

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Apr 2015: n/a.

ProQuest document link

Abstract:

In March, the company said that it would cut its capital spending budget by 12% to $34 billion, though it planned to boost oil and gas production volumes and start pumping fuel from 16 major projects over the next three years.

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Exxon Mobil Corp. on Wednesday raised its dividend to 73 cents from 69 cents, a month after it said it would slash capital spending.

The boost is expected to cost the oil company an extra $167.6 million per quarter. It will be payable on June 10.

Exxon Mobil, which is set to report results Thursday, is among many energy companies that have struggled afterthe sharp tumble of oil prices last year. In March, the company said that it would cut its capital spending budget by 12% to $34 billion, though it planned to boost oil and gas production volumes and start pumping fuel from 16 major projects over the next three years.

In the December quarter, the company's profit dropped 21% as production fell.

Shares were down about 5% this year through Tuesday's close.

Write to Angela Chen at angela.chen@dowjones.com

Credit: By Angela Chen

Subject: Petroleum industry; Capital expenditures

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Apr 29, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1676456047

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1676456047?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Mobil's Profits Plunge 46%, and More

Author: Anonymous

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Apr 2015: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil's first quarter earnings results are hurt by sharp slump in oil prices. Apple Watch rollout slowed by faulty key component

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Apr 30, 2015

Section: Mobile

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1676564710

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1676564710?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Oil Firms' Refining Business Softens Blow From Crude Drop; Exxon, Shell Get Boost From Downstream Units; Conoco Reels as Phillips 66 Thrives

Author: Gilbert, Daniel; Kent, Sarah

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Apr 2015: n/a.

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Exxon Mobil Corp., the biggest and richest U.S. oil company, posted a 46% drop in first-quarter profit, hurt by the sharp slump in oil prices, though results topped expectations.

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Three years ago to the day, ConocoPhillips cut loose its refining and chemicals businesses to focus on the more profitable work of pumping oil and gas. Now the spinoff, Phillips 66, is the one throwing off higher profits.

Refining is proving to be a rare bright spot in the energy industry, which has been struggling with oil prices that are 40% lower than they were a year ago.

The plunge in oil prices erased billions of dollars in profits for the companies that produce crude, battering Exxon Mobil Corp., Royal Dutch Shell PLC and Conoco, which all reported first-quarter earnings Thursday.

But refiners have benefited from the lower cost of the oil they turn into gasoline, diesel and jet fuel. American refiners in particular have prospered because U.S. crude has remained far cheaper than the global price, giving them a competitive advantage over European and Middle East rivals.

Conoco's quarterly profit plummeted 87% from a year ago, to $272 million, or 22 cents a share. Phillips 66 earned more than three times as much, reporting $987 million in profit, or $1.79 a share. Its earnings were down 37% from a year earlier, however, in part because of weakness in its chemicals business. Stripping out one-time impacts such as asset sales, they were down a modest 3.7%.

Exxon and Shell, which have retained their refining businesses, received boosts from them even as oil-production earnings collapsed.

Shell's first-quarter profit actually rose 7%, to $4.76 billion, as a result of depressed earnings a year ago; excluding a $2.86 billion impairment in 2014, profit was down 56%. Shell's refining division posted a $2.5 billion profit in the quarter, swinging from a loss of more than $1 billion a year ago.

Exxon, the biggest publicly traded Western oil company, booked $4.9 billion in profit, 46% lower than a year earlier, as its earnings from pumping oil and gas sank to the lowest level since 2003. Refining profits doubled to $1.67 billion.

In the first three months of 2015, Exxon's refining and chemicals units together made up 48% of the company's profit, excluding corporate and financing costs. A year ago, the two sectors contributed just 19% of profits, with oil-and-gas production providing the rest.

"These solid financial results demonstrate the value of our integrated businesses in a lower commodity price environment," Jeff Woodbury, Exxon's head of investor relations, said Thursday.

The company's financial strength, he noted, allows it to examine potential deals that could include "larger acquisitions that fundamentally will provide strategic value for us in the long term."

Exxon's refining and chemical holdings stretch across North America, Europe and Asia, but they receive a relatively small measure of the company's cash. Over the past decade, the company has invested about $261 billion in finding and tapping oil and gas, about five times as much as it has spent on refining and chemical operations combined.

BP PLC, which reported earnings Tuesday, said its refining and oil-trading business brought in $2.1 billion in the first quarter, up from $794 million a year earlier. France's Total SA also said Tuesday that its quarterly income from its refining and chemicals business more than tripled from last year.

The results come after European companies spent the past few years struggling to sell refining assets, which had strained to turn a profit amid a regional glut of their products, shrinking demand and growing competition from newer and more sophisticated plants in the Middle East and Asia.

Few expect this pattern to last. Earlier this month Total CEO Patrick Pouyanné said the refining industry remains in a crisis. The company is expecting refining margins to fall back in the future.

U.S. refiners also generally reported higher profits Thursday, despite a nationwide refinery strike that affected several plants and severe winter weather on the East Coast. Marathon Petroleum Corp.'s earnings surged to $891 million from $199 million a year ago. PBF Energy Inc. reported profits of $87.3 million, up from $77.4 million last year.

Phillips 66 shares are up more than 130% from three years ago, when it was spun off from Conoco. Conoco's shares have risen about 24% over that time.

Conoco on Thursday said it boosted production and made progress in its goal of cutting operating costs by $1 billion. Despite "strong production growth and good cost control," Chief Financial Officer Jeff Sheets said, "weak commodity prices overshadowed strong operational performance."

Alison Sider contributed to this article.

Write to Daniel Gilbert at daniel.gilbert@wsj.com and Sarah Kent at sarah.kent@wsj.com

Credit: By Daniel Gilbert and Sarah Kent

Subject: Petroleum industry; Chemical industry; Corporate profits

Location: United States--US

People: Tillerson, Rex W

Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140; Name: Exxon Mobil Corp; NAICS: 447110, 21111 1

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Apr 30, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Languageof publication: English

Document type: News

ProQuest document ID: 1676614828

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1676614828?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Canada's Imperial Oil Earnings Fall 55%; Imperial, Canadian subsidiary of Exxon Mobil, hurt by falling crude-oil prices

Author: McKinnon, Judy

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Apr 2015: n/a.

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Imperial Oil Ltd., the Canadian subsidiary of Exxon Mobil Corp., reported a 55% drop in first-quarter earnings on Thursday, hurt by slumping global crude-oil prices.

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Imperial Oil Ltd., the Canadian subsidiary of Exxon Mobil Corp., reported a 55% drop in first-quarter earnings on Thursday, hurt by slumping global crude-oil prices.

Still, the Calgary, Alberta, integrated energy company's results topped analyst expectations as increased production helped offset the drop in oil prices.

Imperial Oil said earnings fell to 421 million Canadian dollars ($350 million), or 50 Canadian cents a share, from C$946 million, or C$1.11 a share, a year earlier. Analysts polled by Thomson Reuters put first-quarter earnings at 40 Canadian cents.

The oil and gas producer said first-quarter production averaged 333,000 gross oil-equivalent barrels a day, a 3,000-barrel-a-day increase from the year-earlier quarter. It said it benefited in part from stronger production from its Kearl oil-sands project and continued strong refinery output.

Like its peers in the oil patch, Imperial Oil has been hit by the steep drop in oil prices since last year. Many producers have scaled back spending and staffing levels to help cut costs.

Imperial Oil said its response to lower crude prices includes "an increased selectivity in new capital investments, a sharpened scrutiny of all operating expenditures and ongoing engagement with our suppliers and contractors to improve cost efficiency and productivity."

The company is in the process of expanding its Kearl oil-sands operation and said it now targets startup by about the middle of this year. The project, which is expected to produce 110,000 barrels of oil a day, has continued to progress ahead of schedule. In February, it guided for startup in the third quarter, which was ahead of an earlier year-end target.

Write to Judy McKinnon at judy.mckinnon@wsj.com

Credit: By Judy McKinnon

Subject: Petroleum industry; Financial performance; Oil sands; Startups

Location: Calgary Alberta Canada

Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Apr 30, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1676688837

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1676688837?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Wants to Use Trucks to Move Oil After California Spill; Pipeline owned by Plains All American burst two weeks ago

Author: Molinski, Dan

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 June 2015: n/a.

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Exxon Mobil Corp. plans to ask Santa Barbara County, Calif., this week for permission to temporarily transport its crude oil in trucks after a pipeline it was using burst two weeks ago , spilling more than 100,000 gallons of oil off the coast.

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Exxon Mobil Corp. plans to ask Santa Barbara County, Calif., this week for permission to temporarily transport its crude oil in trucks after a pipeline it was using burst two weeks ago , spilling more than 100,000 gallons of oil off the coast.

"The County will consider the information provided by ExxonMobil later this week and make an informed decision, based upon our zoning codes, policies and environmental review if warranted," said Kevin Drude, who heads the county's energy division, in an emailed statement.

Mr. Drude said the pipeline, owned by Plains All American Pipeline LP, pumped about 30,000 barrels a day of crude oil from Exxon's Las Flores Canyon facility to a pumping station in Gaviota, where the crude then continued on to refineries inland. The pipeline also was used to move some 4,000 barrels a day of oil produced by private Denver-based firm Venoco, the official said.

Representatives from Exxon weren't immediately available to comment.

The amount of crude pumped in the pipeline is tiny compared with the nearly 2 million barrels a day of oil refined each day in California, analysts said.

Brad Leone, a spokesman for Plains All American Pipeline, said the pipeline has been out of service since the spill and that no timeline for restarting the pipeline has been set. Federal regulators are investigating the cause of the release of oil.

About 1,000 field workers continue cleanup efforts along the scenic Santa Barbara County coast, where some birds and marine mammals have died, and others were rescued.

Write to Dan Molinski at Dan.Molinski@wsj.com

Credit: By Dan Molinski

Subject: Pipelines; Petroleum industry; Crude oil; Deaths

Location: California Santa Barbara County California

Company / organization: Name: Plains All American Pipeline LP; NAICS: 486110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Jun 2, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1684997364

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1684997364?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon to Face Regulators' Questions Over Quakes; Texas is scrutinizing U.S. energy producers on injection wells to dispose of wastewater from hydraulic-fracturing operations

Author: Ailworth, Erin

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 June 2015: n/a.

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XTO follows a scientific protocol when siting wells, and looks forward to discussing that with regulators, said spokeswoman Suann Guthrie. [...]a few years ago, earthquakes in and around Dallas and nearby Fort Worth were rare.

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Texas regulators are scrutinizing some of the biggest U.S. energy producers in the wake of several earthquakes that have rocked the Dallas-Fort Worth area this year.

An Exxon Mobil Corp. subsidiary and EOG Resources Inc., one of the biggest shale-oil and gas pumpers, are facing questions about their use of injection wells to dispose of wastewater from hydraulic fracturing operations. The state's oil-and-gas regulator on Wednesday begins a series of hearings in Austin to assess some oil companies' role in causing the temblors.

A growing body of scientific research from federal, state and academic researchers suggests that disposal wells, often used to get rid of the dirty water leftover from fracking and brine from oil-and-gas production, may be linked to increased seismic activity.

Some in the energy industry are trying to discount those studies. The commission's seismologist, Craig Pearson, has also expressed doubts that fracking or wastewater disposal wells are to blame for a recent spate of quakes in north Texas, home to a natural-gas exploration area called the Barnett Shale.

But Ryan Lance, chief executive of ConocoPhillips, which is one of the biggest American shale drillers, concedes there is a link. "We've followed all the data and the evidence and it does appear that in some areas water disposal is creating seismic events," Mr. Lance said last month. "We're trying to understand how widespread it is."

One of the latest studies to link oil company activity to the temblors comes from Southern Methodist University in Dallas. It connects a fracking wastewater disposal well operated by XTO Energy Inc., an Exxon subsidiary, and another disposal well owned by EnerVest Operating Co. to a series of earthquakes near Fort Worth between November 2013 and January 2014. Both are scheduled to appear before state regulators between June 10 and June 16.

Researchers at SMU say these quakes, near the Fort Worth suburb of Azle, were probably the result of subsurface pressure changes caused by wastewater injections that occurred at the same time drilling operations were causing large amounts of brine to flow up to the surface and out of wells.

Those pressure changes appeared to activate a long-dead fault line in the area, said Matt Hornbach, an associate professor of geophysics at SMU. Whether more recent quakes around Dallas were caused by injection wells remains in question.

"I don't want to rush to judgment," he said.

An EnerVest spokesman said the company supports regulators' efforts to investigate a possible link, but will defend its well operations. "It's premature to reach the conclusion that SMU reached that oil and gas activities are the most likely cause of these seismic events," said spokesman Ron Whitmire. "The study doesn't support those conclusions."

XTO follows a scientific protocol when siting wells, and looks forward to discussing that with regulators, said spokeswoman Suann Guthrie.

Until a few years ago, earthquakes in and around Dallas and nearby Fort Worth were rare. Not so today. So far this year, 23 earthquakes with magnitudes of 2.5 or more have hit the densely-populated urban area that is home to 6.5 million people, according to data from the U.S. Geological Survey.

One of the latest, a 4.0 magnitude temblor near Venus, 30 miles south of Dallas, prompted regulators to request that four energy companies that operate five nearby wastewater disposal wells shut them down and run tests.

Three of the four--EOG, Bosque Disposal Systems LLC and Metro Saltwater Disposal Inc.--didn't comment. Pinnergy Ltd., which operates one of the wells that was shut, said it hired a third-party firm to run tests.

"We at Pinnergy are doing everything we can to support the efforts of the Commission," said Chief Executive Randy Taylor.

The heightened scrutiny comes six months after state regulator, the Railroad Commission of Texas, changed well permitting rules, so it can modify, suspend, or end disposal well approval if scientific data shows the well is contributing to earthquakes, or is likely to do so. The state also put a new requirement in place so that no new disposal well can be built without first evaluating historical U.S. Geological Survey data for a 100-square-mile area around the proposed site.

Questions about the energy industry's role in inciting quakes prompted the changes, and Christi Craddick, chairwoman of the commission, said she hopes the new rules will help provide answers.

"We've had a lot of conclusions come to without a lot of facts supporting them," she said. "When the data comes in, our staff will look at that and give some recommendations."

Meanwhile, Dallas Mayor Mike Rawlings has said the city may have to revise building codes to deal with the issue, and insurance agents are reporting a sudden interest in homeowner policies that cover earthquake damage.

Gregory Garrett's home is just a couple blocks from the epicenter of one of the larger quakes that has struck a Dallas suburb.

"I'm not blaming anyone as far as the oil and gas industry, but it's nerve-racking when the whole house shakes," he told city council earlier this year. "It was very frightening. We have cracks in our house because of it."

Dan Molinski and Daniel Gilbert contributed to this article.

Write to Erin Ailworth at Erin.Ailworth@wsj.com

Credit: By Erin Ailworth

Subject: Earthquakes; Petroleum industry; Studies; Natural gas; Energy industry; Hydraulic fracturing

Location: United States--US Texas Fort Worth Texas

Company / organization: Name: EOG Resources Inc; NAICS: 211111, 213112; Name: ConocoPhillips Co; NAICS: 211111; Name: XTO Energy Inc; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Jun 6, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1686214454

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1686214454?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Santa Barbara Rejects Exxon's Request to Haul Crude in Trucks; California county said Exxon could apply for a trucking permit through the normal, nonemergency process

Author: Molinski, Dan

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 June 2015: n/a.

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Abstract:

In Exxon's request for an emergency permit, it said it needed to maintain crude oil supply for California refineries so it could also maintain natural gas supplies to local utilities, providing energy to thousands of homes and businesses in the area.

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A local official in Santa Barbara, Calif., rejected Tuesday an emergency request by Exxon Mobil to use large trucks to haul its crude oil along a scenic highway until a pipeline that recently ruptured and caused a large spill is fixed.

"There is not adequate evidence that a defined emergency exists," said Dianne Black, the county's assistant director of planning and development. She was enlisted to make the decision after the county's planning director, Glenn Russell, recused himself since he recently owned stock in Exxon.

Exxon was the main customer of a pipeline owned by Plains All American Pipeline that burst three weeks ago due to corrosion, spilling 100,000 gallons of crude oil into the ocean and on beaches and killing wildlife.

Exxon was using the pipeline to haul some 30,000 barrels a day of crude oil, and is being forced to scale back production at offshore California fields as its storage facilities fill up. Last week it urged Santa Barbara to allow it temporarily use trucks to haul the oil to refineries in the region. It said trucks, each carrying some 6,700 gallons of crude oil, would make eight trips an hour, 24 hours a day, seven days a week, using Highway 101, until the pipeline is repaired and pumping resumes.

In Exxon's request for an emergency permit, it said it needed to maintain crude oil supply for California refineries so it could also maintain natural gas supplies to local utilities, providing energy to thousands of homes and businesses in the area.

In denying Exxon's request, Ms. Black also said that the request didn't fit the "comprehensive plan" of Santa Barbara county.

Environmentalist groups had urged Santa Barbara to reject the request, saying it might lead to another oil spill before the mess caused by the pipeline spill is even fully cleaned up.

Santa Barbara said Exxon could apply for a trucking permit through the normal, nonemergency process, although that process could take longer than it takes for the pipeline to return to service.

"We are disappointed in this decision, which we have not yet had the opportunity to study in detail," Richard D. Keil, an Exxon spokesman, said Tuesday. "We will explore all options before us going forward, and we will continue to focus on operating in a safe and responsible manner."

Write to Dan Molinski at Dan.Molinski@wsj.com

Credit: By Dan Molinski

Subject: Petroleum refineries; Crude oil; Oil spills; Pipelines; Petroleum industry

Location: California Santa Barbara California

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Plains All American Pipeline LP; NAICS: 486110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Jun 10, 2015

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1686866054

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1686866054?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Tells Texas Regulators Its Wells Didn't Cause Earthquakes; Sharp rise in Dallas-Fort Worth area earthquakes prompt regulator to review

Author: Ailworth, Erin

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 June 2015: n/a.

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A sharp increase in the number of earthquakes in the north Texas prompted the state's Railroad Commission, which oversees oil-and-gas industry activity, to call hearings to assess oil companies' role in causing the temblors.

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AUSTIN--Exxon Mobil Corp. rejected any role in a string of recent earthquakes hitting the Dallas-Fort Worth area, saying geological data points to natural causes, not its operations.

Officials with Exxon natural-gas subsidiary XTO Energy presented engineering and geological data to state regulators that they said show quakes that hit one suburb in 2013 originated far deeper than a nearby well it had used to dispose of wastewater from oil-and-gas operations.

"Those are deep-seated basement fault movements," Tim George, a lawyer for the company said on Wednesday. "These are naturally occurring movements, not man made."

A sharp increase in the number of earthquakes in the north Texas prompted the state's Railroad Commission, which oversees oil-and-gas industry activity, to call hearings to assess oil companies' role in causing the temblors.

Earlier this year researchers at Southern Methodist University in Dallas published a study linking a cluster of earthquakes in North Texas between November 2013 and January 2014 to wastewater wells operated by XTO and another energy producer, EnerVest Operating Co.

EnerVest, which operates a wastewater well near Fort Worth, is scheduled to appear before regulators next week. Four other companies, including EOG Resources Inc., have been asked to perform tests on several wastewater wells near Venus, 30 miles south of Dallas, where a magnitude 4.0 earthquake struck in May.

EnerVest also disputes its well's role in causing the earthquakes near the Fort Worth suburb of Azle. After reviewing geological data, the company believes some were aftershocks from a deeper, naturally occurring tremor, said Jud Walker, chief operating officer.

"The conclusions they drew were a little strong," Mr. Walker said of the SMU study.

SMU researchers stand behind that report, and said that fault networks act as paths for pressure changes to travel to critically stressed areas and trigger earthquakes.

The injection wells aren't directly connected to drilling or hydraulically fracturing oil and gas wells in the same area. Wastewater wells are used to inject dirty water back underground that is left over from fracking operations, as well as brine water that gets pumped out of oil and gas wells. Those injections, SMU researchers say, likely contributed to subsurface pressure changes that triggered earthquakes near Fort Worth.

Studies done as far back as the 1960s have linked injection wells to earthquakes deep in the ground, said Bill Ellsworth, a geophysicist with the U.S. Geological Survey who worked on the SMU research.

"That's where induced earthquakes usually occur," he said. "This is science that has been understood for 50 years."

The U.S. Geological Survey says injection wells can cause earthquakes, though not all do; such induced quakes can happen miles away from the injection site.

Earthquakes big enough to be felt were virtually unknown to the Dallas-Fort Worth area until this decade when drilling and fracking activity soared in the area, which is home to the gas-rich Barnett Shale exploration region. The quakes have become common enough that some schools in the region have begun to drill children on how to shelter under their desks.

There has been a rise in tremors across the central U.S. over the last six years, primarily caused by wastewater disposal wells, according U.S. Geological Survey data. Between 1973 and 2008, the region averaged 24 quakes of magnitude 3.0 and larger each year. But between 2009 and 2014 that rate has steadily increased to average 193 a year, peaking in 2014 with 688 earthquakes.

Texas regulators revised permitting rules last November so they could modify, suspend or even end a wastewater disposal well's approval if scientific data showed it could be contributing to earthquakes.

The Railroad Commission's scrutiny will continue said Commissioner Ryan Sitton. The increased frequency of earthquakes in Texas is a big concern, he said, noting they are happening close to and far from oil-and-gas operations.

"We need to research it," Mr. Sitton said, acknowledging that public fear of the earthquakes has led some communities to try to ban the industry from their towns. "We have an opportunity to keep this from becoming a political issue."

Write to Erin Ailworth at Erin.Ailworth@wsj.com

Credit: By Erin Ailworth

Subject: Earthquakes; Petroleum industry; Natural gas; Geology

Location: United States--US Texas Fort Worth Texas

Company / organization: Name: EOG Resources Inc; NAICS: 211111, 213112; Name: XTO Energy Inc; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Jun 10, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1687181547

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1687181547?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Mobil, Petróleos de Venezuela to Sell Jointly Owned Refinery; PBF Energy to buy Louisiana refinery for $322 million

Author: Sider, Alison; Vyas, Kejal

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 June 2015: n/a.

ProQuest document link

Abstract:

PBF Energy Inc. has agreed to buy a Louisiana refinery and other assets from Exxon Mobil Corp. and PDV Chalmette LLC for $322 million in a bid to expand in the Gulf Coast and increase its throughput capacity to over 725,000 barrels a day.

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Exxon Mobil Corp. and the national oil company of Venezuela are ending their business partnership, as they are selling a jointly owned Louisiana refinery for $322 million to PBF Energy Inc.

Once the deal closes, Exxon will no longer have any joint ventures with Petróleos de Venezuela SA. Jesus Luongo, PdVSA's vice president of refining, said the plant no longer "aligned with the commercial policies of the company and the country."

ExxonMobil Refining & Supply Co. still has six refineries across the U.S. that can process more than 1.8 million barrels of oil a day into fuels such as gasoline and diesel. Two of the biggest are located on the Gulf Coast in Texas and Louisiana.

PBF, which is based in New Jersey, runs three refineries on the East Coast and in Ohio. The company called the deal a significant step in its expansion, which allows it to plant a flag on the Gulf Coast.

The Chalmette refinery, located 10 miles southeast of New Orleans, can process up to 189,000 barrels a day of crude. It primarily runs on oil pumped from the Louisiana coast and Venezuela. Once PBF adds this fourth refinery to its U.S. portfolio of plants, the company will be able to refine more than 725,000 barrels a day of oil into fuels.

"We will have increased our refining capacity by 35%," said Tom Nimbley, chief executive of PBF.

For Exxon and PdVSA, the deal marks the end of a decadeslong rocky history.

The refinery sale comes a week after a World Bank arbitration court denied Venezuela's attempt to annul a $1.6 billion payment to Exxon for oil-and-gas properties expropriated by the South American government in 2007.

Barclays analyst Alejandro Arreaza said Venezuela might use proceeds from the sale to help pay its debt to Exxon. "Selling assets is definitely not something good for the long term because you're splitting up parts of the company," he said, adding the sale offers minor but much-needed relief for the oil-exporting nation as it grapples with a severe economic crisis amid low oil prices.

Venezuela has burned through nearly a third of its international currency reserves since the beginning of March, raising concerns of a possible debt default. The country depends on oil sales for 96% of its income, but the international price of oil has fallen more than 40% since last summer to less than $65 a barrel. Venezuelan crude, which tends to be thicker and harder to refine, sells for much less.

The Louisiana refinery's performance has been handicapped by Exxon and PdVSA's 50-50 joint-venture arrangement, PBF said. The company said it would continue to import some Venezuelan crude, but won't allow a supply agreement with PdVSA to limit its ability to run the plant more profitably. Similar heavy crude oils from Mexico and Canada are readily available in the region.

PBF also plans to buy more light, sweet crude pumped from nearby U.S. shale fields to use in the refinery.

Tom O'Malley, executive chairman of PBF, told The Wall Street Journal last year that he wanted to buy more refineries in the U.S. "We need to be bigger," he said at the time.

Shares of PBF rose nearly 14% Thursday on the news to close at $29.97.

Angela Chen contributed to this article.

Write to Alison Sider at alison.sider@wsj.com and Kejal Vyas at kejal.vyas@wsj.com

Credit: By Alison Sider and Kejal Vyas

Subject: Petroleum industry; Acquisitions & mergers; Petroleum refineries

Location: Louisiana

Company / organization: Name: PBF Energy; NAICS: 324110; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Jun 18, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1689651139

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1689651139?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Business News: Deal Marks End of Exxon-Venezuela Partnership

Author: Sider, Alison; Vyas, Kejal

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]19 June 2015: B.3.

ProQuest document link

Abstract:

Exxon Mobil Corp. and the national oil company of Venezuela are ending their business partnership, as they are selling a jointly owned Louisiana refinery for $322 million to PBF Energy Inc. Once the deal closes, Exxon will no longer have any joint ventures with Petroleos de Venezuela SA. Jesus Luongo, PdVSA's vice president of refining, said the plant no longer "aligned with the commercial policies of the company and the country."

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Exxon Mobil Corp. and the national oil company of Venezuela are ending their business partnership, as they are selling a jointly owned Louisiana refinery for $322 million to PBF Energy Inc.

Once the deal closes, Exxon will no longer have any joint ventures with Petroleos de Venezuela SA. Jesus Luongo, PdVSA's vice president of refining, said the plant no longer "aligned with the commercial policies of the company and the country."

ExxonMobil Refining & Supply Co. still has six refineries across the U.S. that can process more than 1.8 million barrels of oil a day into fuels such as gasoline and diesel. Two of the biggest are located on the Gulf Coast in Texas and Louisiana.

PBF, which is based in New Jersey, runs three refineries on the East Coast and in Ohio. The company called the deal a significant step in its expansion, which allows it to plant a flag on the Gulf Coast.

The Chalmette refinery, located 10 miles southeast of New Orleans, can process up to 189,000 barrels a day of crude. It primarily runs on oil pumped from the Louisiana coast and Venezuela. Once PBF adds this fourth refinery to its U.S. portfolio of plants, the company will be able to refine more than 725,000 barrels a day of oil into fuels.

"We will have increased our refining capacity by 35%," said Tom Nimbley, chief executive of PBF.

For Exxon and PdVSA, the deal marks the end of a decadeslong rocky history.

The refinery sale comes a week after a World Bank arbitration court denied Venezuela's attempt to annul a $1.6 billion payment to Exxon for oil-and-gas properties expropriated by the South American government in 2007.

Barclays analyst Alejandro Arreaza said Venezuela might use proceeds from the sale to help pay its debt to Exxon. "Selling assets is definitely not something good for the long term because you're splitting up parts of the company," he said, adding the sale offers minor but much-needed relief for the oil-exporting nation as it grapples with a severe economic crisis amid low oil prices.

Venezuela has burned through nearly a third of its international currency reserves since the beginning of March, raising concerns of a possible debt default. The country depends on oil sales for 96% of its income, but the international price of oil has fallen more than 40% since last summer to less than $65 a barrel. Venezuelan crude, which tends to be thicker and harder to refine, sells for much less.

The Louisiana refinery's performance has been handicapped by Exxon and PdVSA's 50-50 joint-venture arrangement, PBF said. The company said it would continue to import some Venezuelan crude, but won't allow a supply agreement with PdVSA to limit its ability to run the plant more profitably. Similar heavy crude oils from Mexico and Canada are readily available in the region.

PBF also plans to buy more light, sweet crude pumped from nearby U.S. shale fields to use in the refinery.

Tom O'Malley, executive chairman of PBF, told The Wall Street Journal last year that he wanted to buy more refineries in the U.S. "We need to be bigger," he said at the time.

---

Angela Chen contributed to this article.

Credit: By Alison Sider and Kejal Vyas

Subject: Petroleum refineries; Petroleum industry; Acquisitions & mergers; Energy policy

Location: United States--US Louisiana Texas New Jersey Venezuela

Company / organization: Name: International Bank for Reconstruction & Development--World Bank; NAICS: 928120; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 9173: Latin America; 8510: Petroleum industry

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2015

Publication date: Jun 19, 2015

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1689800231

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1689800231?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Mobil, BP Suspend Canadian Arctic Exploratory Drilling Program in Beaufort Sea; Imperial Oil to seek retroactive extension of Canadian Arctic exploration lease

Author: Dawson, Chester

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 June 2015: n/a.

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Abstract:

The three companies have since combined their Beaufort programs into an Imperial-led joint venture called Imperial Oil Resources Ventures Ltd. Imperial and Chevron have asked the NEB, Canada's national energy regulator, to ease rules designed to prevent undersea well blowouts such as the one involved in the 2010 Deepwater Horizon spill in the Gulf of Mexico.

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CALGARY--An oil industry consortium including Exxon Mobil Corp. and BP PLC on Friday suspended its Canadian arctic exploration program in the Beaufort Sea, citing insufficient time to begin test drilling before its lease expires in 2020.

The move represents a setback for oil companies active in Canada's arctic waters and follows a similar decision by Chevron Corp. in December to halt its own exploratory drilling program in the Beaufort Sea . Those projects have been stymied by regulatory hurdles and some of the world's highest extraction costs.

Imperial Oil Ltd., Exxon Mobil's Canadian affiliate, informed federal regulators in Canada of its decision to suspend its Beaufort Sea exploratory program on Friday and said it would seek to have its current lease extended retroactively to 16 years.

"If approved, the extension would provide sufficient time to undertake the necessary technical studies and develop the technology and processes to support responsible development in the Beaufort Sea," Imperial Oil said in a letter to Canada's National Energy Board.

The Arctic holds billions of barrels of untapped oil reserves, but offshore-drilling costs there are among the highest in the world because of its remote location and severe weather. The Imperial-led consortium has been planning to drill a well as deep as 6 miles beneath the floor of the Beaufort Sea, one of the deepest offshore wells in the world and the deepest by far in the Arctic.

The leases where the proposed well would be drilled are located about 110 miles off the coast of the Northwest Territories town of Tuktoyaktuk. Imperial, Exxon Mobil and BP obtained leases for the right to drill in 2007 and 2008. The three companies have since combined their Beaufort programs into an Imperial-led joint venture called Imperial Oil Resources Ventures Ltd.

Imperial and Chevron have asked the NEB, Canada's national energy regulator, to ease rules designed to prevent undersea well blowouts such as the one involved in the 2010 Deepwater Horizon spill in the Gulf of Mexico.

In Canadian Arctic waters, operators must have standby capacity ready to stop a blowout by drilling a relief well within the same season. But wells in the Beaufort Sea need to be drilled so deep it will require multiple seasons to complete, so license holders have sought an exemption allowing alternative measures.

The NEB has said it is reviewing those requests.

The Arctic holds about one-third of the world's untapped natural gas and an estimated 13% of as-yet undiscovered crude, or roughly 90 billion barrels of oil. More than three-quarters of those deposits are offshore, according to U.S. Geological Survey estimates.

Write to Chester Dawson at chester.dawson@wsj.com

Credit: By Chester Dawson

Subject: Petroleum industry; Energy policy; Drilling; Consortia

Location: Arctic region Canada Beaufort Sea

Company / organization: Name: Chevron Corp; NAICS: 324110, 211111; Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Jun 26, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1691330242

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1691330242?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Guyana Assures Exxon Venezuela Dispute Won't Slow Oil Exploration; Caracas revives century-old claim on two-thirds of Guyana, including oil find

Author: Vyas, Kejal

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 June 2015: n/a.

ProQuest document link

Abstract: None available.

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When it comes to Exxon Mobil Corp.'s recent oil discovery off the coast of Guyana, one that Venezuela claims as its own, Guyanese President David Granger has a clear message for the U.S. company: Drill away.

Mr. Granger, who took office days before Exxon announced the significant find last month, said that he met with officials from the company--which was contracted by Guyana--and offered assurances that exploration work won't be interrupted, despite Venezuela's recent revival of a century-old claim on two-thirds of Guyana's territory.

Guyana, a former British colony of 750,000 people and South America's only English-speaking nation, is counting on diplomacy and the help of regional allies to resolve the matter.

A Paris arbitration tribunal in 1899 had set the internationally recognized boundaries, but Venezuela sixty years later rejected the findings saying it was cheated.

"We're not going to send the navy out there and battle it out," Mr. Granger said in an interview Friday with The Wall Street Journal, ahead of efforts to garner international support for the country. His campaign is set to begin at an annual Caribbean summit in Barbados next week and will continue at the United Nations General Assembly in September, he said.

"We're a small nation, we have no interest in any sort of military confrontation," said Mr. Granger, a retired army brigadier.

Venezuela, which has periodically laid claim on the land, briefly detained a Malaysian-owned seafloor survey ship hired by Guyana and the U.S. oil company Anadarko along with its crew in 2013.

Tensions between the nations have risen since Exxon's discovery, with Venezuela President Nicolás Maduro issuing a May 26 decree reasserting his country's sovereignty over a Louisiana-sized swath of Guyana called the Essequibo and its Atlantic waters, where Exxon has the exploration concession from Guyana.

Mr. Maduro, who on his weekly television program Tuesday accused Exxon of "provocation," was expected to address congress on ways to confront Guyana this week, but his speech was postponed twice and is now scheduled for this coming Tuesday.

"I ask for the help of the whole country, all social and political sectors, civil and military, to defend our territory, defend our fatherland," Mr. Maduro said as he faces pressure from allies as well as political opponents to take action against Guyana.

The controversy comes at a time when Venezuela's economy is crumbling , prompting some analysts to believe he is looking to divert attention from internal problems outward.

Polls indicate that Mr. Maduro's ruling United Socialist Party is likely to suffer a major setback in National Assembly elections set for Dec. 6 , with Venezuelans punishing the country's leadership for an economic crisis marked by triple-digit inflation and chronic shortages of basic goods such as milk and detergent.

"It's primarily a distraction," said Risa Grais-Targow, an analyst at the risk consultancy Eurasia Group. She added that Mr. Maduro could be using the issue as leverage to pressure the new government in Guyana.

"I hope he will be conciliatory," Mr. Granger said in anticipation of his counterpart's address. "This issue was settled 116 years ago."

Mr. Granger said he personally told Exxon officials in Guyana in a meeting in recent days that they have nothing to worry about. "The difference is that Exxon is U.S. property and any attempt to physically interfere with U.S. property might be faced with a different response," Mr. Granger said.

Exxon declined to comment.

Exxon has had strained relations with Caracas after the country nationalized the company's heavy-oil projects in 2007, for which Venezuela has to pay the U.S. oil major $1.6 billion , an arbitration court ruled earlier this year. Exxon and Venezuela's state energy company ended their decadeslong relationship last week afterselling their joint ownership of a refinery .

Guyana, which the World Bank ranks as the Western Hemisphere's third-poorest country in terms of per capita gross national product, is trying to boost its coffers and find a share of oil off of northeastern South America after other neighbors, such as Suriname and Brazil, in recent years made significant discoveries.

Mr. Granger said oil would be a boon for the country, which relies on limited lumber, gold and diamond mining and is grappling with high levels of youth unemployment. A World Health Organization study in 2012 found Guyana to have the highest suicide rate in the world, four times the global average.

Mr. Granger, who is Afro-Guyanese, led a multiethnic coalition of political parties to victory after 23 years of a government controlled by Guyanese of East Indian descent. He says his administration can offer stability and is looking for new investors.

The prospect for oil has also attracted Spanish energy company Repsol SA, which according to Guyana's government requested a six-month extension this week on its offshore exploration license.

Venezuela's objections have grown louder with Exxon's presence, Mr. Granger said. "I can't think of any other reason for the tensions. There was no other precedent except for the presence of Exxon."

Despite the territory controversy, Guyana and Venezuela have strengthened economic ties since signing an oil-for-rice deal in 2009. Thanks to the agreement, Guyana has become the largest supplier of the grain to 29 million Venezuelans, who take in nearly half of Guyana's rice exports in exchange for refined oil.

That deal is set to expire later this year and Mr. Granger says his foreign minister is scheduled to be in Venezuela on Monday with the hopes of renewing the supply contract and securing a crucial market for Guyanese farmers.

"I don't think there will be any danger that the border matter will jeopardize the agreement," Mr. Granger said.

Write to Kejal Vyas at kejal.vyas@wsj.com

Credit: By Kejal Vyas

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Jun 26, 2015

Section: World

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1691347010

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1691347010?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Judge Considers Environmental Groups' Standing in Exxon Case; Environmental groups attempt to block $225 million settlement

Author: Haggerty, Neil

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 July 2015: n/a.

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Abstract:

Attorneys for environmental activists and a Democratic state senator told a judge Friday they should be permitted to intervene in New Jersey Gov. Chris Christie's controversial decision to settle a long-standing contamination case with Exxon Mobil Corp. for $225 million.

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Attorneys for environmental activists and a Democratic state senator told a judge Friday they should be permitted to intervene in New Jersey Gov. Chris Christie's controversial decision to settle a long-standing contamination case with Exxon Mobil Corp. for $225 million.

The arguments before Superior Court Judge Michael Hogan came after more than a decade of litigation surrounding damages, caused by Exxon's refineries, to an area spanning more than 1,500 acres of wetlands, meadows and waterways near Bayonne.

The state initially sought $8.9 billion from Exxon for the damages. But this year, Mr. Christie announced a $225 million settlement with Exxon, ending 11-years of litigation.

Environmental groups and state Sen. Raymond Lesniak argued that the settlement, which amounts to less than 3% of the amount the state originally sought, isn't in the best interest of New Jersey residents.

"I contend that the public is not being represented by the state of New Jersey," Mr. Lesniak said.

Mr. Christie's administration and the company argued that the environmental groups and the senator don't have legal standing in the case. The judge said he would issue a written decision next week.

One of the environmental groups, Natural Resources Defense Council, which also represents NY/NJ Baykeeper and New Jersey Audubon, said the settlement forfeits money needed to restore and replace resources lost and it doesn't guarantee that any money will be used for those purposes.

The public had a 60-day period to submit comments after the Christie administration's announced the settlement. More than 16,000 comments poured in.

The Christie administration has said the deal with Exxon was the largest environmental settlement in state history and makes certain that the company cannot appeal.

Allan Kanner, special counsel to the state attorney general, said the state welcomes public opinion on the settlement, but the groups don't have legal grounds to become parties in the proceedings.

A year before the settlement, Exxon donated $500,000 to the Republican Governors Association, which Mr. Christie led in 2014. The donation far exceeded donations the company has made to the Democratic Governors Association, but Exxon has said that donations had nothing to do with Mr. Christie's leadership.

Ted Wells, counsel for Exxon, said that the company doesn't believe it is gaining from the settlement. He said Exxon doesn't believe it should pay any damages.

Write to Neil Haggerty at neil.haggerty@wsj.com

Credit: By Neil Haggerty

Subject: Environmental protection; Litigation; Donations

Location: New Jersey

Company / organization: Name: Democratic Governors Association; NAICS: 813940; Name: Republican Governors Association; NAICS: 813940; Name: Natural Resources Defense Council; NAICS: 813312; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Jul 10, 2015

Section: US

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1695284261

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1695284261?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Repro duced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Environmental Activists Can't Intervene in Exxon Case, Judge Rules; Ruling marks setback in environmental groups' effort to scuttle $225 million settlement

Author: Haggerty, Neil

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 July 2015: n/a.

ProQuest document link

Abstract:

Superior Court Judge Michael Hogan ruled that the interests of the environmental groups and Sen. Raymond Lesniak were adequately represented by the state Department of Environmental Protection, the original party in the 11-year dispute.

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A judge on Monday rejected an attempt by environmental activists and a state lawmaker to intervene in New Jersey Gov. Chris Christie's decision to settle a contamination case with Exxon Mobil Corp. for $225 million, a significant setback in the effort to scuttle the deal.

Superior Court Judge Michael Hogan ruled that the interests of the environmental groups and Sen. Raymond Lesniak were adequately represented by the state Department of Environmental Protection, the original party in the 11-year dispute.

The environmental groups say the proposed $225 million settlement doesn't cover the damage caused by Exxon's refineries to an area spanning more than 1,500 acres of wetlands, meadows and waterways near Bayonne. The state initially sought $8.9 billion from Exxon.

The groups and Mr. Lesniak "have done nothing to overcome the presumption of adequate representation that arises when they share the same ultimate goal with an original party," Judge Hogan wrote in his decision.

A spokesman for the Department of Environmental Protection said, "We're pleased that this decision will allow consideration of the proposed settlement to move forward, while providing a mechanism for input from those who wish to be heard."

Jeff Tittel, director of the New Jersey Sierra Club, pledged to continue to fight. "We are looking to appeal this decision," he said.

A spokesman for Exxon declined to comment. The company opposed the environmental groups' intervention in the case.

Officials have said the settlement would be the largest environmental settlement in the state's history and it would ensure that Exxon couldn't appeal.

The groups looking to intervene have accused the state of not acting in the best interest of New Jersey residents. The settlement amounts to 2.5% of the amount the state initially sought from Exxon.

"Gov. Christie and his administration should not let this multi-billion-dollar oil corporation off the hook for the damages it rightfully owes the people of this state," Natural Resources Defense Council attorney Margaret Brown said in a news release.

Mr. Lesniak, a Democrat, said Monday that he intends to file a brief with the judge, who will decide whether to approve the settlement. "I'm optimistic that the judge is going to reject the settlement," he said.

Write to Neil Haggerty at neil.haggerty@wsj.com

Credit: By Neil Haggerty

Subject: Environmental protection; Settlements & damages

Location: New Jersey

People: Christie, Christopher J

Company / organization: Name: Natural Resources Defense Council; NAICS: 813312

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Jul 13, 2015

Section: US

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1695796382

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Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

City News: Critics of Settlement With Exxon Lose Ruling

Author: Haggerty, Neil

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]14 July 2015: A.17.

ProQuest document link

Abstract:

Superior Court Judge Michael Hogan ruled that the interests of the environmental groups and Sen. Raymond Lesniak were adequately represented by the state Department of Environmental Protection, the original party in the 11-year dispute.

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Full text:  

A judge on Monday rejected an attempt by environmental activists and a state lawmaker to intervene in New Jersey Gov. Chris Christie's decision to settle a contamination case with Exxon Mobil Corp. for $225 million, a significant setback in the effort to scuttle the deal.

Superior Court Judge Michael Hogan ruled that the interests of the environmental groups and Sen. Raymond Lesniak were adequately represented by the state Department of Environmental Protection, the original party in the 11-year dispute.

The environmental groups say the proposed $225 million settlement doesn't cover the damage caused by Exxon's refineries to an area spanning more than 1,500 acres of wetlands, meadows and waterways near Bayonne. The state initially sought $8.9 billion from Exxon.

The groups and Mr. Lesniak "have done nothing to overcome the presumption of adequate representation that arises when they share the same ultimate goal with an original party," Judge Hogan wrote in his decision.

A spokesman for the Department of Environmental Protection said, "We're pleased that this decision will allow consideration of the proposed settlement to move forward, while providing a mechanism for input from those who wish to be heard."

Jeff Tittel, director of the New Jersey Sierra Club, pledged to continue to fight. "We are looking to appeal this decision," he said.

A spokesman for Exxon declined to comment. The company opposed the environmental groups' intervention in the case.

Officials have said the settlement would be the largest environmental settlement in the state's history and it would ensure that Exxon couldn't appeal.

The groups looking to intervene have accused the state of not acting in the best interest of New Jersey residents. The settlement amounts to 2.5% of the amount the state initially sought from Exxon.

"Gov. Christie and his administration should not let this multi-billion-dollar oil corporation off the hook for the damages it rightfully owes the people of this state," Natural Resources Defense Council attorney Margaret Brown said in a news release.

Mr. Lesniak, a Democrat, said Monday that he intends to file a brief with the judge, who will decide whether to approve the settlement. "I'm optimistic that the judge is going to reject the settlement," he said.

Credit: By Neil Haggerty

Subject: Environmental protection; Settlements & damages

Location: New Jersey

People: Christie, Christopher J

Company / organization: Name: Natural Resources Defense Council; NAICS: 813312; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 9190: United States; 8510: Petroleum industry; 4330: Litigation

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.17

Publication year: 2015

Publication date: Jul 14, 2015

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1695932993

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1695932993?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Falling Crude Prices Upend Canada's Oil Sands Projects; Royal Dutch Shell, Exxon Mobil and Imperial Oil rely on deeply buried oil sands deposits to increase cash flows

Author: Dawson, Chester

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 July 2015: n/a.

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Abstract:

Some of the world's biggest oil companies, including Royal Dutch Shell PLC and Exxon Mobil Corp.'s Canadian unit, Imperial Oil Ltd., are counting on those deeply buried oil sands deposits to increase cash flows and shore up their global production levels.

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Two years ago Canadian oil sands producer Cenovus Energy Inc., buoyed by success at its flagship project and eager to cut operating expenses, halved the amount of instrumentation used to measure finicky temperature and pressure at its wells.

But that turned out to be a costly mistake that cut into its Foster Creek site's production volumes, which only have recently recovered after the company reversed course.

"We started to cut our operating costs, but in hindsight that's a lesson learned," Harbir Chhina, Cenovus' executive vice president in charge of oil sands, said in an interview. "If I compare the oil sands to a baseball game, I think we just finished the first inning," he said.

Of the roughly two million barrels a day that Canada currently produces from its oil sands, about half is mined from the surface using giant excavators and the world's tallest dump trucks. The rest is too deep to mine and must be recovered by newer technology such as injecting steam underground to leach out oil deposits. That accounts for about 80% of Canada's reserves--the world's third-largest source of untapped crude.

The global downturn in oil prices is shining a harsh light on the high cost of extracting Canada's oil sands, which are the biggest single source of U.S. crude imports. Some of the world's biggest oil companies, including Royal Dutch Shell PLC and Exxon Mobil Corp.'s Canadian unit, Imperial Oil Ltd., are counting on those deeply buried oil sands deposits to increase cash flows and shore up their global production levels.

Chronic cost overruns amid the pressure of lower oil prices are calling into question how much of those reserves can be recovered profitably.

The most common technique for extracting the deepest deposits involves drilling a pair of horizontal tunnels that bracket an underground oil formation from above and below. Steam pumped into the top chamber melts solidified oil, which gradually drips into the lower well, where it is collected and pumped to the surface.

In industry circles, it is known SAGD, or steam assisted gravity drainage and has no relation to hydraulic fracturing, which uses a single well and high-pressure injections of unheated water to release oil from shale formations.

But this method is turning out to be more technologically complex and unpredictable than billed when first deployed commercially in the early 2000s. The key unforeseen challenge with the technology has been the lack in uniformity in reservoirs of heavy crude, or bitumen, in ancient river beds that now lie buried under the boreal forests in Canada's western Alberta province.

Operators are having to drill more wells, pump more steam underground and lay more pipe above ground to meet targets, thanks to varying thickness, impermeable rock formations and high water-saturation levels. The result is a lot of trial and error as kinks are worked out.

"The technology isn't one-size-fits-all," said Reynold Tetzlaff, PricewaterhouseCoopers' Canada energy team leader, noting that the continuing capital requirements necessitate strong balance sheets. "It's getting harder and harder for smaller companies to make a go of SAGD."

Many of their projects were greenlighted when prices were higher, or believed to be heading higher. But what was tolerable a year ago at $100 a barrel has become less profitable--or unworkable--in today's world of $50 a barrel crude. The break-even point for a brand-new SAGD project, including a 9% average return on investment, requires crude prices of at least $65 a barrel, which is among the highest extraction cost in the oil industry, according to the Bank of Nova Scotia.

On Wednesday, U.S. oil prices dipped below $50 a barrel after weekly data showed an unexpected increase in U.S.supplies.

Several once-promising Canadian junior oil-sands producers that bet on this form of extraction have suspended operations and sought protection from creditors, including Connacher Oil & Gas Ltd., Ivanhoe Energy Inc., Laricina Energy Ltd. and Southern Pacific Resource Corp.

Most oil-sands startups and a few large producers--such as Cenovus--rely entirely on SAGD and most of the oil sands' multinational players also use it for some of their current output or are counting on it for their future production plans.

Cenovus, Canadian Natural Resources Ltd., Suncor Energy Inc. and Shell all announced plans earlier this year to shelve--but not abandon--plans for new or expanded subsurface oil sands projects until global oil prices rebound or costs can be reduced dramatically.

Even before the tumble in oil prices, France's Total SA and Statoil ASA of Norway indefinitely postponed a pair of underground oil sands projects last year, citing cost issues.

SAGD was developed conceptually in the late 1960s and tested in the 1970s by Exxon's Imperial unit. While it has licensed the technology broadly since then to rivals, the company has yet to deploy it beyond the test phase.

Rich Kruger, the chief executive of Imperial, said the technology holds promise but that other, more shovel-ready extraction methods have taken priority. "It's more [about] technical readiness," Mr. Kruger said. "We've invested a lot of time and energy in SAGD and are very confident in it. [But] we look to optimize it to get the most of it," he said.

Even some of the richest deposits have proved more difficult to develop than envisioned, requiring more steam per barrel to separate hockey puck-hard heavy oil embedded in sand. Suncor's biggest SAGD project, known as Firebag, uses 40% more steam per barrel than it was initially designed for, despite a decade of operation, according to a recent report by Calgary investment bank Peters & Co.

"We believe that most companies in the oil sands are drilling significantly more wells than initially planned to keep production rates stable," a recent Peters report said.

Cenovus talked boldly this time last year of introducing mass manufacturing to Canada's remote oil patch by ramping up installation of 30,000 to 50,000 barrel-a-day well-site modules. But after the crude price slump, the company slashed its 2015 spending budget, deferred new SAGD expansion phases and, in late May, ushered out half its executive leadership, including the COO.

The Calgary-based oil sands major says the personnel changes were long in the works and that it views the deferments as temporary. Cenovus executive Mr. Chhina notes Foster Creek, the industry's first large-scale SAGD project, recouped its multibillion-dollar construction cost within a decade of starting up in 2001 and is among the most efficient production sites.

"SAGD is a proven technology but it definitely still needs to be tweaked here and there," he said.

Write to Chester Dawson at chester.dawson@wsj.com

Credit: By Chester Dawson

Subject: Oil sands; Petroleum industry; Crude oil prices

Location: Canada

Company / organization: Name: Cenovus Energy Inc; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Jul 22, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1697923500

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1697923500?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Chevron and Exxon Get the Plaudits, but Some Smaller Drillers Faring Well; Choice U.S. oil-and-gas fields helping some firms weather oil price plummet

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 July 2015: n/a.

ProQuest document link

Abstract:

[...]as of this week, Cabot Oil & Gas Corp., a Houston-based shale-gas specialist, had bested all the big oil companies in stock-market performance since last summer when the price of crude first began to crash. [...]built-in hedges, combined with hefty dividends, have helped the biggest energy companies stem falling share prices better than most small and midsize U.S. drillers like Apache Corp., Marathon Oil Corp. and Hess Corp. Yet even Exxon, Chevron and Royal Dutch Shell PLC are grappling with how to improve profits when tapping new sources of oil and gas has become increasingly expensive.

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Giant oil companies are weathering the oil slump better than the average shale driller, but even their famous stability is at times being surpassed by much smaller companies that own some of the choicest U.S. oil-and-gas fields.

Take Cimarex Energy Co., which drills in Texas and Oklahoma. The oil producer's stock price has fared better than that of Chevron Corp., the second largest American oil company by revenue, since crude-oil prices started crashing last June. Shares of Diamondback Energy Inc., an eight-year-old oil producer with a $4.3 billion market value, have held up almost as well as Exxon Mobil Corp.'s over that stretch. And as of this week, Cabot Oil & Gas Corp., a Houston-based shale-gas specialist, had bested all the big oil companies in stock-market performance since last summer when the price of crude first began to crash.

Diamondback, Cabot and Cimarex tend to carry less debt than their peers and can coax fuel out of the ground at a lower cost. It is a combination that has proved at least as attractive as the deep pockets of the world's biggest oil companies over the last year as U.S. crude prices plunged by more than 50% to less than $50 a barrel.

The three shale specialists have seen their shares fall between 20% and 30% since. By contrast, an index of 21 U.S. energy companies, almost all of them oil-and-gas producers, has declined 52.3% over the same period.

"There have been a handful that have bucked the trend," Chad Mabry, an analyst at MLV & Co., said of the best-performing shale drillers.

It isn't clear how long the stars of U.S. shale drilling can rival the industry's heavyweights. These giant oil companies like Exxon and Chevron, which report quarterly profits on Friday, are helped by enormous cash flows and easy access to credit.

The share-price buoyancy of elite shale drillers, including EQT Corp., Concho Resources Inc. and EOG Resources Inc., could be a sign that investors are betting on a rebound in oil and gas prices. Or it might reflect a bet that some of the smaller, most efficient players will be bought at a premium by the big oil companies, said Doug Terreson, head of energy research at Evercore ISI.

As the oil behemoths report earnings this week, analysts expect the companies to cushion the blow of cheap crude by reaping higher profit margins from refining it into gasoline and diesel. Such built-in hedges, combined with hefty dividends, have helped the biggest energy companies stem falling share prices better than most small and midsize U.S. drillers like Apache Corp., Marathon Oil Corp. and Hess Corp.

Yet even Exxon, Chevron and Royal Dutch Shell PLC are grappling with how to improve profits when tapping new sources of oil and gas has become increasingly expensive. The three biggest Western oil firms are all running a cash-flow deficit as a result of heavy capital spending and dividend payments. Chevron has said it isn't likely to plug the gap until 2017.

An Exxon spokesman referred to comments made by its chief executive earlier this year, saying the company's business model gives it a competitive advantage. Chevron and Shell declined to comment.

Wood Mackenzie, an energy consultancy, estimates that big energy companies have delayed spending about $200 billion on big-ticket oil-and-gas developments since prices began to fall last year. If the delays continue, they may struggle to boost their output and cash flow.

"You can legitimately question the growth potential for pretty much every one" of the big oil companies, said Guy Baber, head of integrated company research at Simmons & Co. International. By contrast, investors have flocked to shale drillers that operate with the greatest efficiency and promise to increase output.

Diamondback focuses on the Permian basin, a vast oil-producing region in West Texas, and touts its fast drilling and ability to make money at oil prices as low as $30 a barrel. It booked a $6.4 million profit on $101.4 million in revenue in the first quarter of 2015, and expects to increase production by roughly 50% this year. Its shares are down about 25% since oil prices peaked last June.

Standard & Poor's upgraded Diamondback's credit rating in April as it increased oil and gas production, one of the few drillers to get such a boost amid the downdraft in oil prices.

Diamondback didn't respond to requests for comment.

Shares of Cimarex, which also drills in the Permian, are down about 25% since last June. The company lost $414.9 million in the first quarter, largely due to a $603.6 million noncash write-down on the value of its oil and gas properties, and is scheduled to report second-quarter earnings on Aug. 4.

"Our sizable portfolio has strong rates-of-return which provide us multiple opportunities to grow and add value, even in challenging times," said Tom Jorden, Cimarex's chief executive.

Cabot Oil & Gas has a sizable oil operation in South Texas but still makes most of its money tapping natural gas in Pennsylvania's Marcellus Shale, which has helped buffer it against crude's steep drop in price. Cabot pumped more gas but sold it for less money in the second quarter, posting a loss of $27.5 million; the company remains profitable for the first half of 2015. Natural-gas prices are down about 24% from a year ago, while crude-oil prices have halved over that stretch.

Analysts at Barclays praised Cabot's ability to make money in tough times, but warned that its stock is valued at a 40% premium to its average peer. The bank said it's "cautious about the size of this premium."

"The key for us at Cabot is to manage our operations and our finances so that price disruptions can be managed effectively," said George Stark, a Cabot spokesman.

Write to Daniel Gilbert at daniel.gilbert@wsj.com

Credit: By Daniel Gilbert

Subject: Petroleum industry; Acquisitions & mergers; Corporate profits; Investments; Capital expenditures; Profit margins; Crude oil prices; Energy industry

Location: United States--US Oklahoma West Texas

Company / organization: Name: EOG Resources Inc; NAICS: 211111, 213112; Name: Concho Resources Inc; NAIC S: 211111, 211112; Name: EQT Corp; NAICS: 221210; Name: Cabot Oil & Gas Corp; NAICS: 211111; Name: Diamondback Energy Inc; NAICS: 211111; Name: Hess Corp; NAICS: 447110, 324110, 211111; Name: Marathon Oil Corp; NAICS: 486110, 324110, 211111, 213112; Name: Apache Corp; NAICS: 324110, 211111, 213112

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Jul 29, 2015

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1699714509

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1699714509?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Mobil Earnings: What to Watch; Will refining rescue Exxon's profits?

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 July 2015: n/a.

ProQuest document link

Abstract:

If the effort is bearing fruit, it might show up in the company's profit margins on the oil and gas it produces.

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Exxon Mobil Corp. is scheduled to report earnings for the second quarter on Friday. Here's what you should know:

EARNINGS FORECAST: Net income of $1.12 a share is the consensus of analysts surveyed by Thomson Reuters, compared with $2.05 a share in the prior-year period.

REVENUE FORECAST: Revenue of $72.5 billion is forecast for the quarter, compared with $111.6 billion a year earlier.

WHAT TO WATCH:

--FUELS: When prices are low for oil and gas, Exxon reaps higher profits from making fuels and chemicals. In the first quarter of 2015, the company's profit from its downstream and chemicals divisions was nearly as much as it made from pumping oil and gas--which traditionally generates the most profit. Will the trend hold ?

--LAYOFFS: Exxon has yet to announce major staff layoffs since oil prices began falling last summer. But lately its peers, including Royal Dutch Shell PLC and Chevron Corp., have said they would shed thousands of workers . Will Exxon start cutting jobs more aggressively?

--COST-CUTTING: Last quarter , Exxon said it expected to "lead the cost curve" as it sought to reduce operating costs. If the effort is bearing fruit, it might show up in the company's profit margins on the oil and gas it produces.

Write to Daniel Gilbert at daniel.gilbert@wsj.com

Credit: By Daniel Gilbert

Subject: Petroleum industry; Financial performance; Corporate profits

People: Gilbert, Daniel

Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Jul 30, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1700147471

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1700147471?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Mobil, Chevron Put Squeeze on Buybacks; Dividends are a lifeline as Exxon Mobil and Chevron slash buybacks amid oil's slump.

Author: Jakab, Spencer

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 July 2015: n/a.

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Abstract:

Over the past decade, Exxon has paid out 46% of operating cash flow as buybacks compared with just 18% as dividends.

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It is easy to forget that rivals Exxon Mobil Corp. and Chevron Corp. share a founder.

It is safe to say John D. Rockefeller might scratch his head about big oil's strategy today . He didn't get to be the richest man in the world by buying high and selling low, after all.

Mr. Rockefeller, who said nothing gave him as much pleasure as seeing his dividends come in, would be surprised at how small those checks have become. The industry still throws off plenty of cash, of course, even without the quasimonopoly that Standard Oil enjoyed. Exxon alone has paid out a whopping $342 billion to shareholders since merging with Mobil in 1999. But much of that has been in the form of buybacks that reduced its shares outstanding by 40%.

With both companies on Fridayexpected to report earnings sharply lower from a year ago, it is worth considering how they distribute that smaller pie. Both have trimmed capital expenditure. But large, integrated companies can't just abandon megaprojects and don't want to see their pace of reserve replacement deteriorate.

Dividends are thorny, too. Chevron raised eyebrows just by not raising its dividend in the most recent quarter. If it fails to do so during 2015, it will forfeit its status as a "dividend aristocrat": a company that has raised payouts consistently for at least 25 years. Exxon is in the club for another year.

But both companies are slashing buybacks, something that invites less criticism. Chevron has scrapped them altogether for 2015. In the first quarter, Exxon cut its buybacks to half of the year-earlier level.

That is a shame given that the two companies' share prices were about 11% lower, on average, in 2015's first half versus a year ago. That would give each buyback buck more bang.

Over the past decade, Exxon has paid out 46% of operating cash flow as buybacks compared with just 18% as dividends. From 1995 through 2000, dividends were double buybacks. Chevron is more dividend heavy, but also has seen the ratio shift sharply.

Executives love buybacks because they can cut payouts with less outcry and bolster the value of stock options. But Exxon and Chevron investors should ask if the practice is in their best interest. Their founder certainly would.

Write to Spencer Jakab at spencer.jakab@wsj.com

Credit: By Spencer Jakab

Subject: Petroleum industry; Dividends

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Jul 30, 2015

column: Ahead of the Tape

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1700191386

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1700191386?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Mobil Earnings Cut in Half; Energy giant's revenue falls 33% as results are hurt by lower oil prices

Author: Dulaney, Chelsey

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 July 2015: n/a.

ProQuest document link

Abstract:

Chevron Corp., the second-biggest U.S. oil company in market value behind Exxon, on Friday said its profit tumbled to its lowest level since 2002 in the second quarter as the oil company took more than $2 billion in impairments and charges to suspend projects amid lower crude-oil prices.

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Exxon Mobil Corp., the biggest and richest U.S. oil company, reported its lowest earnings in six years on Friday as bigger profits from refining couldn't offset plunging earnings in its exploration and production business.

Shares of Exxon Mobil tumbled as much as 5% on Friday to their lowest level since mid-2012. Recently, shares were down 4.7% to $79.11.

Exxon also said it would again scale back its share buybacks during the current quarter to a level of $500 million. Exxon bought back $1 billion in shares in the second quarter, which was down from its previous level of about $3 billion in buybacks each quarter. Stock repurchases are popular with investors because they shrink the number of shares available and tend to make them more valuable.

In a news release, Chief Executive Rex Tillerson said results in the latest quarter "reflect the disparate impacts of the current commodity price environment."

Profit in the exploration and production, or upstream, business plunged 74% to $2.03 billion in the latest quarter, as its U.S. division swung to a loss.

The average price Exxon realized in the U.S. for crude fell to $54.06 a barrel from $98.55 a barrel a year earlier. For natural gas, average U.S. price fell to $2.31 per thousand cubic feet from $4.46 a year ago.

Exxon's production improved 3.6% to 4 million oil-equivalent barrels a day.

But the Irving, Texas, company was again been helped by fatter profits in its downstream and chemicals divisions, which are being boosted by low prices for oil and gas. In the latest quarter, Exxon made more from those divisions than from pumping oil and gas for the first time since at least 2000.

Refining and marketing earnings, or downstream, more than doubled to $1.51 billion from $711 million a year earlier. Exxon cited stronger margins for the increases. The chemical segment earnings improved 48% to $1.25 billion as lower feedstock costs boosted margins.

In all, Exxon reported a profit of $4.19 billion, or $1 a share, down from $8.78 billion, or $2.05 a share, a year earlier. Revenue fell 33% to $74.11 billion.

Analysts polled by Thomson Reuters expected a per-share profit of $1.11 and revenue of $72.48 billion.

Capital spending fell to $8.26 billion from $9.8 billion a year earlier.

Exxon has moved to conserve cash in a sign that it doesn't expect a quick rebound in crude prices. The company has announced it would slash its capital spending by this year and reduce its stock buybacks in the near term.

Chevron Corp., the second-biggest U.S. oil company in market value behind Exxon, on Friday said its profit tumbled to its lowest level since 2002 in the second quarter as the oil company took more than $2 billion in impairments and charges to suspend projects amid lower crude-oil prices.

Shares of Chevron fell 4.6% to $88.75 a share in morning trading.

Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com

Credit: By Chelsey Dulaney

Subject: Petroleum industry; Corporate profits; Prices; Capital expenditures; Natural gas

Location: United States--US

People: Tillerson, Rex W

Company / organization: Name: Chevron Corp; NAICS: 324110, 211111; Name: Thomson Reuters; NAICS: 511110, 511140; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Jul 31, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1700336425

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1700336425?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-21

Database: The Wall Street Journal

Oil Shares Weigh on Dow Industrials; Energy sector declines after disappointing results from Exxon Mobil, Chevron

Author: Josephs, Leslie

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 July 2015: n/a.

ProQuest document link

Abstract:

Big oil companies pulled the Dow Jones Industrial Average lower on Friday, on disappointing earnings reports and a sign of increased U.S. oil drilling despite a renewed slump in crude prices.

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Big oil companies pulled the Dow Jones Industrial Average lower on Friday, on disappointing earnings reports and a sign of increased U.S. oil drilling despite a renewed slump in crude prices.

The Dow Jones Industrial Average shed 56.12 points, or 0.3%, on the day to 17689.86. The index was down from an intraday high of 17783.5. The S&P 500 reversed from modest gains earlier in the session to fall 4.7 points 0.2% to 2103.84. The Nasdaq Composite Index fell less than 0.1%, or 0.5 points to 5128.28.

On the other side of the Atlantic, the Stoxx Europe 600 rose less than 0.1% to 396.37.

Shares of large U.S. oil companies, already pressured by downbeat earnings reports, fell after oil-field services firm Baker Hughes said on Friday afternoon that the number of active U.S. oil rigs rose by five this week to 664, the second consecutive weekly increase.

Oil futures prices fell after the data were released, with Nymex crude settling at $47.12 a barrel, down 2.9%, or $1.40.

Exxon Mobil Corp., the biggest U.S. oil company earlier on Friday reported a 52% decline in profit for its second quarter and its stock price fell 4.6% to $79.21. Chevron shares were down 4.9% at $88.48 on Friday, after the company reported $2.6 billion in quarterly charges tied to lower oil prices.

Together the two companies' share-price drop shaved about 56 points off the Dow. "That should not surprise anyone," Randy Frederick, managing director of trading and derivatives at Charles Schwab, said of the oil companies' results.

Still, the Dow Industrials eked out a 0.4% gain in July, the largest since May. The S&P 500 rose about 2% in the month, the biggest monthly percentage gain since February.

Friday's losses were somewhat muted by a report that showed paltry growth in U.S. wages, which cast some doubt over whether the Federal Reserve would raise interest rates in the coming months.

The U.S. employment-cost index, a measure of workers' wages and benefits, rose a seasonally adjusted 0.2% in the second quarter from the first quarter, the Labor Department reported. The gains marked the smallest quarterly rise since record-keeping began in 1982, and fell below economists' expectations of a 0.6% increase.

"I think what the markets are reading is that once again this another one in the column for "no" [for a Fed rate rise] in September," said Jeffrey Yu, head of single-stock derivatives trading at UBS Group AG.

Even if the Fed were to raise rates by a quarter percentage point, it wouldn't likely encourage investors to sell stocks and pile into other asset classes like bonds, said Gordon Charlop, managing director at Rosenblatt Securities. "What does a quarter [percentage] point do? Does it mean I'm going to sell all my equities? I don't think so," Mr. Charlop said. "It's like jumping off a snake's belly."

Shares of Coca-Cola Enterprises Inc. rallied 12.4% at $51.08 following news of merger talks with Coke bottlers Coca-Cola Iberian Partners and Germany's Coca-Cola Erfrischungsgetranke AG .

Shares of Hanesbrands Inc. dropped 9.11 % to $31.03 after the apparel maker posted second-quarter sales below analyst estimates.

The dollar weakened 0.5% against the common currency, as one euro bought $1.0981 in late-afternoon trade.

Gold futures posted their steepest monthly decline since June 2013, after investors slashed gold holdings in anticipation of higher U.S. interest rates. The most actively traded contract, for December delivery, settled up $6.40, or 0.6%, at $1,095.10 a troy ounce on the Comex division of the New York Mercantile Exchange.

Write to Leslie Josephs at leslie.josephs@wsj.com

Credit: By Leslie Josephs

Subject: Interest rates; Petroleum industry; Prices; Investments

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Jul 31, 2015

column: U.S. Markets

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1700336751

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1700336751?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Imperial Oil Profit Drops 90% on Tax Charge, Low Crude Prices; Canadian subsidiary of Exxon Mobil reports boost from stronger production levels in the quarter

Author: McKinnon, Judy

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 July 2015: n/a.

ProQuest document link

Abstract:

Imperial Oil Ltd. on Friday posted a 90% drop in its second-quarter profit, hurt by a large charge for a tax-rate increase in Alberta, slumping global oil prices and in the absence of a year-earlier gain on the sale of an asset.

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Imperial Oil Ltd. on Friday posted a 90% drop in its second-quarter profit, hurt by a large charge for a tax-rate increase in Alberta, slumping global oil prices and in the absence of a year-earlier gain on the sale of an asset.

The Calgary, Alberta, integrated energy company, the Canadian subsidiary of Exxon Mobil Corp., did get a boost from stronger production levels in the quarter, helped in part by the early startup of an oil-sands expansion project in northern Alberta.

Overall production rose nearly 20% to 344,000 barrels of oil equivalent a day, which the company said was its highest quarterly production level in nearly eight years.

In June, Imperial Oil announced that production from the Kearl oil-sands expansion project had started earlier than scheduled. The 9 billion Canadian dollar ($6.9 billion) project is expected to add 110,000 barrels a day of oil-sands production.

Imperial Oil earned C$120 million, or 14 Canadian cents a share, in its latest quarter, down from C$1.23 billion, or C$1.45 a year earlier.

Results in the latest quarter include a largely noncash charge of C$320 million, or 38 Canadian cents a share, for an increase in the corporate tax rate in Alberta. Year-earlier results got a boost from a C$478 million gain on the sale of upstream assets.

Analysts polled by Thomson Reuters expected a profit of 58 Canadian cents a share in the latest quarter.

Revenue fell to C$7.30 billion from C$10.0 billion, but was in line with analyst expectations.

The company said its average realized prices for synthetic crude oil and bitumen fell about 33% and 35%, respectively, from year-earlier levels. West Texas Intermediate prices, the main benchmark for North American crude, were down 44% from a year earlier, it said.

Imperial Oil said capital and exploration spending in the quarter declined 41% to C$819 million.

Write to Judy McKinnon at judy.mckinnon@wsj.com

Credit: By Judy McKinnon

Subject: Petroleum industry; Oil sands; Financial performance; Corporate profits; Expansion

Location: Calgary Alberta Canada

Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Jul 31, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1700361546

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Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon's M&A Edge Over Chevron Amid Low Oil Prices; Pioneer Natural Resources and Hess could be targets

Author: Denning, Liam

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 July 2015: n/a.

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Exxon Mobil ended a typically dry quarterly results presentation Friday by summing up not only its own culture but also the mantra of all the majors amid a slump in the key variable they can't manage: oil prices. Over the six years to 2008, the big four had an aggregate $130.7 billion left over after deducting capital expenditure and dividends from operating cash flow, according to S&P Capital IQ.

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"We remain focused on what we control."

Exxon Mobil ended a typically dry quarterly results presentation Friday by summing up not only its own culture but also the mantra of all the majors amid a slump in the key variable they can't manage: oil prices.

Investors run the risk of cash distributions--Big Oil's big selling point--being squeezed. The flip side, at least for Exxon, is the rising probability of big acquisitions.

With both Exxon's and Chevron's earnings misses capping off a week of results from the majors, trust is fraying. Exhibit A: trailing dividend yields. At over 3.5%, Exxon's is the highest since the 1999 merger with Mobil.

This is striking when you consider Exxon's rock solid dividend record and credit rating. And indeed, Exxon looks safer than peers. Chevron yields 4.8%, while Royal Dutch Shell and BP are both at about 6.5%.

The problem is cash flow. Over the six years to 2008, the big four had an aggregate $130.7 billion left over after deducting capital expenditure and dividends from operating cash flow, according to S&P Capital IQ. Net debt to capitalization fell to 2% from 14%.

In the following six years, aggregate operating cash flow was actually $60 billion higher. But a jump in spending left just $12 billion after investment and dividends. Leverage rose to 14%. In the 12 months through June, investment and dividends outpaced operating cash flow by $29 billion.

The most notable casualty so far: share buybacks. These have gone to zero for Chevron, Shell and BP; even Exxon has cut its projected third-quarter amount to just $500 million--demonstrating the pro-cyclicality of buybacks. Remarkably, refiner Valero Energy, which reported blowout results this week, could end up spending more on buybacks this quarter than Exxon.

Exxon is, at least, still raising its dividend. The same can't be said for Chevron. The company is at pains to emphasize its commitment to dividends, but the second quarter's payment per share was flat on the previous quarter and a year before.

Chevron's big problem is that, being close to completing several megaprojects, spending hasn't fallen quickly enough. Its 2017 targets for production and covering its dividend from cash flow, outlined in March, are predicated on $70 oil. Absent that, Chevron is leaving open the option of disposals to defend the dividend--but that, in turn, could put the production target at risk. Chevron's disposals in the trailing four quarters of roughly $9 billion were highest in the group.

Exxon is in relatively better shape. It is starting to see production come through already from earlier investments, with output rising 3.6%, year over year, in the second quarter.

The timing still isn't great: Falling energy prices wiped more than 10 times the amount off Exxon's upstream earnings in the quarter than higher production added back. And growth prospects beyond 2017 are murkier, especially with sanctions constraining progress in Russia.

This is where Exxon can actually take advantage of low oil prices. While its stock is down 19% in the past year, the U.S. exploration and production sector has fallen 47% .

Exxon insists it takes a global approach when looking at acquisition opportunities. But the U.S., with its large resource base and lower political risk, is a natural hunting ground. Pressed by Paul Sankey of Wolfe Research on Friday's call, Exxon conceded the Permian shale basin--where it has an existing position--has a "very diverse" ownership structure. And fragmented markets are made for consolidation by majors. Meanwhile, on Chevron's call, upstream chief Jay Johnson noted a very competitive U.S. oil-field services market meant even E&P firms smaller than the majors could drive down costs--an attractive proposition in straitened times. Indeed, Exxon said its U.S. onshore business has achieved 30% cost reductions from their 2014 peak.

Potential U.S. targets, by Mr. Sankey's reckoning, include Pioneer Natural Resources and Hess. Without a rebound in oil prices, it looks like Chevron may be selling even more assets. Exxon, though, looks more likely to go shopping.

Write to Liam Denning at liam.denning@wsj.com

Credit: By Liam Denning

Subject: Cash flow; Petroleum industry; Investments; Political risk; Capital expenditures

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Jul 31, 2015

column: Heard on the Street

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1700385304

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Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Pain Worsens for Oil Giants Exxon and Chevron; Companies report weakest profits in more than a decade for oil and natural-gas production

Author: Gilbert, Daniel

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Aug 2015: n/a.

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Abstract:

When prices are low, they make more money from refining inexpensive crude into fuels like gasoline and diesel that they can sell at a greater profit. [...]this year, Exxon and Chevron typically made the vast majority of their profits from oil and gas production.

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America's two biggest oil companies, Exxon Mobil Corp. and Chevron Corp., reported their worst profits from pumping oil and natural gas in more than a decade as low crude prices lopped off billions of dollars from their quarterly haul.

Exxon's second-quarter profit plunged 52% to $4.2 billion. The energy giant's division that pumps oil and gas accounted for just $2 billion of that, the lowest level since 2002. Chevron eked out a quarterly profit of $571 million thanks to its fuel-making refineries, which made up for the company's $2.2 billion loss from pumping oil and gas--the first such loss in nearly 20 years. Chevron lowered its outlook for crude prices and wrote down the value of its energy holdings by $2 billion.

The hard landing fell short of analysts' expectations, and Exxon and Chevron shares dropped nearly 5% Friday, making them the two worst performers in the Dow Jones Industrial Average.

Global oil prices have fallen more than 50% since last June, and settled Friday at $52 a barrel, the lowest since January. Exxon and Chevron have posted bigger profits during the 2009 downturn and earlier oil busts. But the world's biggest oil companies are ailing from more than low prices--problems that were masked when oil traded around $100 a barrel.

"The tide's going out and now we can see what was at the bottom," said Amy Myers Jaffe, executive director of energy and sustainability at the University of California-Davis.

The cost of unleashing new supplies of oil and gas has soared for the world's biggest oil companies, as they have spent enormous sums to harvest natural gas from Australia's remote waters and wring crude from Canada's oil sands, Ms. Jaffe noted.

Chevron is preparing to start up a massive gas-exporting project in Australia, whose costs have ballooned 45% to $54 billion. Exxon has boosted its oil output by scooping up thick, sludge-like crude from mines in the forests of Western Canada, a fuel that is expensive to unearth and sells for less than traditional oil. Royal Dutch Shell PLC on Thursday began wildcatting for oil in Alaska's Arctic waters, an undertaking that has already cost it more than $7 billion and it could take another decade before any oil flows.

As crude prices have tumbled over the past year, the three behemoths have been spending more to coax fuel from the ground and on dividends to shareholders than they have generated in cash. The companies are trying to conserve cash by laying off workers, negotiating for discounts with their suppliers and cutting spending.

Exxon plans to spend half as much on buying back its stock during the third quarter. Shell said this week it will cut 6,500 workers from its world-wide payroll. Chevron is reducing its workforce by 1,500, and didn't raise the dividend for the second quarter, as it typically does. Patricia Yarrington, Chevron's chief financial officer, said the company is committed to extending its streak of annual dividend increases for 27 years. "It is our number one priority," she said.

The companies are also seizing savings amid the downturn, particularly in the U.S. Jay Johnson, a Chevron executive vice president, said the company had been able to bring down the cost of tapping oil and gas by 20% to 50%, making it profitable to drill some new prospects even at today's oil prices. Exxon has operated at a lower cost on U.S. soil over the last three years than many smaller drillers, said Jeff Woodbury, head of investor relations. But both companies reported losses from their U.S. oil-and-gas drilling operations through the first half of the year, as have rivals BP PLC and ConocoPhillips.

The oil giants typically weather energy downturns because of their countercyclical businesses. When oil prices are high, they make richer profits from pumping crude out of the ground. When prices are low, they make more money from refining inexpensive crude into fuels like gasoline and diesel that they can sell at a greater profit.

Until this year, Exxon and Chevron typically made the vast majority of their profits from oil and gas production. Refining operations and chemical-making units have accounted for less than a quarter of Exxon's profits and barely 10% of Chevron's over the last 10 years. This year, however, is a different story.

Exxon made more money from refining crude and selling chemicals in the second quarter than it did from producing oil and gas--the first time since at least 2000. Chevron turned a $3 billion profit from its fuel-making plants, boosted by selling a stake in an Australia refiner, which accounted for the lion's share of its profits.

"I think they're largely benefiting from the integrated model," said Allen Good, a Morningstar Inc. analyst. Still, he said, they are spending more to generate cash than they used to.

Meanwhile, the price of crude continues to crater and many analysts don't see a rebound on the horizon.

IHS Energy, a research and consulting group, said the global oil glut is intensifying because the U.S., Saudi Arabia and Iraq have increased their collective output by 2 million barrels a day since November. Prices are poised to drop even further and could linger in a low $40-range for months before growing oil supplies stop swelling, according to a new report.

"Oil prices will be under downward pressure until there is evidence the glut is shrinking," IHS analysts wrote. "This will not happen quickly unless prices fall even further from recent levels."

Write to Daniel Gilbert at daniel.gilbert@wsj.com

Credit: By Daniel Gilbert

Subject: Petroleum industry; Financial performance; Corporate profits; Cost control; Losses; Natural gas; Crude oil prices

Location: United States--US Australia

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: University of California-Davis; NAICS: 611310; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Aug 1, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1700410083

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1700410083?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Pain Worsens for Oil Giants --- Exxon and Chevron report weakest profits in more than a decade for oil and natural-gas production

Author: Gilbert, Daniel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]01 Aug 2015: B.1. [Duplicate]

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Abstract:

When prices are low, they make more money from refining inexpensive crude into fuels like gasoline and diesel that they can sell at a greater profit. [...]this year, Exxon and Chevron typically made the vast majority of their profits from oil and gas production.

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Full text:  

America's two biggest oil companies, Exxon Mobil Corp. and Chevron Corp., reported their worst profits from pumping oil and natural gas in more than a decade as low crude prices lopped off billions of dollars from their quarterly haul.

Exxon's second-quarter profit plunged 52% to $4.2 billion. The energy giant's division that pumps oil and gas accounted for just $2 billion of that, the lowest level since 2002. Chevron eked out a quarterly profit of $571 million thanks to its fuel-making refineries, which made up for the company's $2.2 billion loss from pumping oil and gas -- the first such loss in nearly 20 years. Chevron lowered its outlook for crude prices and wrote down the value of its energy holdings by $2 billion.

The hard landing fell short of analysts' expectations, and Exxon and Chevron shares dropped nearly 5% Friday, making them the two worst performers in the Dow Jones Industrial Average.

Global oil prices have fallen more than 50% since last June, and settled Friday at $52 a barrel, the lowest since January. Exxon and Chevron have posted bigger profits during the 2009 downturn and earlier oil busts. But the world's biggest oil companies are ailing from more than low prices -- problems that were masked when oil traded around $100 a barrel.

"The tide's going out and now we can see what was at the bottom," said Amy Myers Jaffe, executive director of energy and sustainability at the University of California-Davis.

The cost of unleashing new supplies of oil and gas has soared for the world's biggest oil companies, as they have spent enormous sums to harvest natural gas from Australia's remote waters and wring crude from Canada's oil sands, Ms. Jaffe noted.

Chevron is preparing to start up a massive gas-exporting project in Australia, whose costs have ballooned 45% to $54 billion. Exxon has boosted its oil output by scooping up thick, sludge-like crude from mines in the forests of Western Canada, a fuel that is expensive to unearth and sells for less than traditional oil. Royal Dutch Shell PLC on Thursday began wildcatting for oil in Alaska's Arctic waters, an undertaking that has already cost it more than $7 billion and it could take another decade before any oil flows.

As crude prices have tumbled over the past year, the three behemoths have been spending more to coax fuel from the ground and on dividends to shareholders than they have generated in cash. The companies are trying to conserve cash by laying off workers, negotiating for discounts with their suppliers and cutting spending.

Exxon plans to spend half as much on buying back its stock during the third quarter. Shell said this week it will cut 6,500 workers from its world-wide payroll. Chevron is reducing its workforce by 1,500, and didn't raise the dividend for the second quarter, as it typically does. Patricia Yarrington, Chevron's chief financial officer, said the company is committed to extending its streak of annual dividend increases for 27 years. "It is our number one priority," she said.

The companies are also seizing savings amid the downturn, particularly in the U.S. Jay Johnson, a Chevron executive vice president, said the company had been able to bring down the cost of tapping oil and gas by 20% to 50%, making it profitable to drill some new prospects even at today's oil prices. Exxon has operated at a lower cost on U.S. soil over the last three years than many smaller drillers, said Jeff Woodbury, head of investor relations. But both companies reported losses from their U.S. oil-and-gas drilling operations through the first half of the year, as have rivals BP PLC and ConocoPhillips.

The oil giants typically weather energy downturns because of their countercyclical businesses. When oil prices are high, they make richer profits from pumping crude out of the ground. When prices are low, they make more money from refining inexpensive crude into fuels like gasoline and diesel that they can sell at a greater profit.

Until this year, Exxon and Chevron typically made the vast majority of their profits from oil and gas production. Refining operations and chemical-making units have accounted for less than a quarter of Exxon's profits and barely 10% of Chevron's over the last 10 years. This year, however, is a different story.

Exxon made more money from refining crude and selling chemicals in the second quarter than it did from producing oil and gas -- the first time since at least 2000. Chevron turned a $3 billion profit from its fuel-making plants, boosted by selling a stake in an Australia refiner, which accounted for the lion's share of its profits.

"I think they're largely benefiting from the integrated model," said Allen Good, a Morningstar Inc. analyst. Still, he said, they are spending more to generate cash than they used to.

Meanwhile, the price of crude continues to crater and many analysts don't see a rebound on the horizon.

IHS Energy, a research and consulting group, said the global oil glut is intensifying because the U.S., Saudi Arabia and Iraq have increased their collective output by 2 million barrels a day since November. Prices are poised to drop even further and could linger in a low $40-range for months before growing oil supplies stop swelling, according to a new report.

"Oil prices will be under downward pressure until there is evidence the glut is shrinking," IHS analysts wrote. "This will not happen quickly unless prices fall even further from recent levels."

Credit: By Daniel Gilbert

Subject: Financial performance; Crude oil prices; Company reports; Petroleum industry

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Chevron Corp; NAICS: 211111, 324110

Classification: 3100: Capital & debt management; 8510: Petroleum industry; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2015

Publication date: Aug 1, 2015

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1700435868

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1700435868?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

California Regulator Proposes $566,600 Fine Against Exxon; The regulator said Exxon ignored hazardous conditions at a Torrance refinery that exploded

Author: Sider, Alison

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Aug 2015: n/a.

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Abstract:

A California regulatory agency has proposed a $566,600 fine against Exxon Mobil Corp., saying the company knew about and ignored hazardous conditions at a refinery in Torrance that exploded and injured four workers earlier this year.

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A California regulatory agency has proposed a $566,600 fine against Exxon Mobil Corp., saying the company knew about and ignored hazardous conditions at a refinery in Torrance that exploded and injured four workers earlier this year.

California's Division of Occupational Safety and Health, the state's workplace safety regulator, concluded that Exxon failed to prevent the Feb. 18 explosion of equipment that helps reduce air pollution. The refinery's fluid catalytic cracker--a key gasoline-making unit--has been shut down since the incident, contributing to high fuel prices at the pump in the state.

Cal/OSHA said the company "did not take action to eliminate known hazardous conditions at the refinery and intentionally failed to comply with state standards."

"We are reviewing the citations to determine the appropriate administrative and legal next steps," said Exxon spokesman Todd Spitler. "We have and will continue to work cooperatively with Cal OSHA."

Exxon had known since a 2007 safety review that flammable vapor leakage was possible at the plant and didn't mitigate it, according to the agency, adding that management ignored other problems and didn't have the right procedures in place to halt operations.

In total, Cal/OSHA issued 19 citations to Exxon, 18 of which were classified as serious.

Exxon has 15 days to appeal the citations.

Write to Alison Sider at alison.sider@wsj.com

Credit: By Alison Sider

Subject: Petroleum industry; Petroleum refineries

Location: California

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Aug 13, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1703735790

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1703735790?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: Th e Wall Street Journal

Dow Turns Lower, As Wal-Mart and Exxon Mobil Drop

Author: Josephs, Leslie; Vaishampayan, Saumya

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]19 Aug 2015: C.4.

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In other earnings news, Home Depot again lifted its outlook for the year, as the U.S. housing recovery helped drive better-than-expected sales growth in its latest quarter. Range-bound action is likely to continue until the Federal Reserve provides more guidance on interest rates, said Peter Cardillo, chief market economist at broker-dealer Rockwell Global Capital.

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U.S. stocks fell as a slump in consumer and energy stocks snapped the Dow's three-session winning streak.

The Dow Jones Industrial Average slid 33.84 points, or 0.2%, to 17511.34. The S&P 500 lost 5.52 points, or 0.3% to 2096.92. The Nasdaq Composite dropped 32.35 points, or 0.6%, to 5059.35.

Shares of Wal-Mart Stores led the Dow lower, dropping $2.43, or 3.4%, to $69.48, the retailer's lowest closing price since February 2013. The move shaved 16.2 points off the Dow. Earlier Tuesday, Wal-Mart cut its earnings guidance for the year to between $4.40 and $4.70 a share, from its previous forecast of $4.70 to $5.05 a share.

For the quarter ended July 31, Wal-Mart said profit fell 15% to $3.48 billion, or $1.08 a share, from $4.09 billion, or $1.26 a share, a year earlier, citing factors including higher wages. In February, Wal-Mart said it would boost U.S. employees' wages.

Alan Konn, an senior portfolio manager at Ulhmann Price Securities LLC, a wealth-management firm, said the portfolios he manages still include Wal-Mart shares and that he approves of the higher minimum wages.

"It is the right thing to do to keep employees," Mr. Konn said. "I'll give it time. This is a monster of a company."

Shares of T.J. Maxx and Marshalls operator TJX Cos., however, soared 5.17, or 7.2%, to a record closing price of 76.78 after the company reported a 6.1% increase in quarterly earnings. Ross Stores rose 2.03, or 3.7%, to 56.53, a record close.

In other earnings news, Home Depot again lifted its outlook for the year, as the U.S. housing recovery helped drive better-than-expected sales growth in its latest quarter. Its shares rose 3.10, or 2.6%, to 122.80.

The housing market is one of the bright spots of the U.S. economy. Housing starts rose 0.2% in July from a month earlier to an annual rate of 1.21 million.

"Clearly, the optimism in Home Depot is tied to the housing market," said Randy Frederick, managing director of Trading and Derivatives at Charles Schwab.

Shares of Exxon Mobil lost 87 cents, or 1.1%, to 77.90. Walt Disney fell 2.11, or 1.9%, to 106.94.

U.S. stocks have been stuck in a range this year as investors grapple with a slowdown in global economic growth and an expected increase in U.S. interest rates. The S&P 500 has gained 1.8% in 2015 so far.

Range-bound action is likely to continue until the Federal Reserve provides more guidance on interest rates, said Peter Cardillo, chief market economist at broker-dealer Rockwell Global Capital. "It will be a bumpy ride, but going nowhere," he said.

"The U.S. economy for now is not going gangbusters, but it's certainly not falling apart," said Mr. Cardillo. "That brings us closer to a rate hike in September."

Concerns about China have also ramped up in recent weeks, rippling across markets affected by Chinese growth. The recent devaluation of China's currency was viewed as a sign of Beijing's anxiety about the country's economic slowdown.

The Shanghai Composite Index tumbled 6.1% Tuesday, ending just 240 points above its recent trough on July 8. The declines in Chinese markets came even as the central bank injected a large amount of cash into the financial system. Late morning Wednesday, the Shanghai benchmark was down a further 5%, while Hong Kong's Hang Seng Index was off 1.3% and Japan's Nikkei was down 0.5%.

Action was mixed in Europe, though moves were muted. Germany's DAX index slipped 0.2% and France's CAC 40 fell 0.3%, while the pan-European Stoxx Europe 600 rose 0.2%.

The yield on the 10-year Treasury note rose to 2.196% from 2.150%. Yields rise as prices fall.

Credit: By Leslie Josephs and Saumya Vaishampayan

Subject: Dow Jones averages; Stock prices; Daily markets (wsj)

Classification: 3400: Investment analysis & personal finance; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: C.4

Publication year: 2015

Publication date: Aug 19, 2015

column: Tuesday's Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1704937602

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1704937602?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Judge Approves N.J.-Exxon Settlement; Environmental groups vow to continue fighting the $225 million deal

Author: King, Kate

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 Aug 2015: n/a.

ProQuest document link

Abstract:

Superior Court Judge Michael Hogan described the settlement in his ruling as "fair, reasonable, in the public interest" and consistent with a state law that seeks to protect New Jersey's natural resources from contamination by petroleum products and other hazardous substances.

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A New Jersey judge approved a $225 million settlement on Tuesday between Gov. Chris Christie's administration and Exxon Mobil Corp. to end a legal battle over polluted sites, a deal environmentalists denounced as grossly inadequate.

Superior Court Judge Michael Hogan described the settlement in his ruling as "fair, reasonable, in the public interest" and consistent with a state law that seeks to protect New Jersey's natural resources from contamination by petroleum products and other hazardous substances.

Environmental groups criticized the ruling. In a statement, the New Jersey chapter of the Sierra Club accused Judge Hogan of "rubberstamp[ing] the biggest corporate subsidy in state history."

"This settlement is incomplete because it neglects to restore 1,500 acres of wetlands," said Jeff Tittel, the club's director. "We are down, but not out. We will continue to fight this sellout."

The state initially sought $8.9 billion from Exxon, and battled the oil company in court for 11 years before the parties notified the court of their proposed settlement in February. The litigation stemmed from allegations that Exxon, which owned and operated refineries in the Bayonne area for much of the 20th century, contaminated wetlands, meadows and waterways.

A spokeswoman for Mr. Christie's administration hailed the judge's decision as affirmation of what she called the state's "fair and historic settlement."

"The Christie administration has not only secured the largest environmental-damage recovery in state history, but also cemented Exxon Mobil's obligation to pay for the complete cleanup and remediation of these sites on top of this landmark payout," said Nicole Sizemore, a spokeswoman for Mr. Christie.

Tuesday's decision follows a 60-day public comment period, which ended June 5, and unsuccessful attempts by eight environmental groups and New Jersey state Sen. Raymond Lesniak to intervene in the case. The vast majority of the 16,013 public comments received by the court opposed the settlement, according to Judge Hogan's ruling.

Opponents said the settlement was far too meager to compensate for the damage done to northern New Jersey's wetlands.

"This is a multibillion-dollar gift to Exxon Mobil from Gov. Christie and his administration, at the expense of New Jersey residents," said Margaret Brown, an attorney for Natural Resources Defense Council, an environmental group.

An Exxon spokesman said the company lauds the decision.

"This settlement has brought this case to a fair and reasonable conclusion," company spokesman Alan Jeffers said in an email. "Both parties will now have the benefit of the certainty and finality that comes from this settlement."

Oil refining in Bayonne dates back to the late 1800s, when John D. Rockefeller's Standard Oil Co. constructed a pipeline from Pennsylvania to Bayonne, according to court records.

At its peak in 1936, the Bayonne refinery covered 650 acres and employed 5,000 workers.

A landmark 1911 U.S. Supreme Court decision forced the breakup of Standard Oil into 34 companies, including Jersey Standard, which changed its name to Exxon Corp. in the 1970s and continued to operate the northern New Jersey refineries.

The company began discussing environmental remediation with the state in the early 1990s, and as of December 2014 had spent more than $258 million on remediation in the Bayonne area, according to Judge Hogan's ruling.

Credit: By Kate King

Subject: Petroleum refineries; Petroleum industry; Litigation; Court decisions; Environmental protection; Wetlands; Natural resources

Location: New Jersey

Company / organization: Name: Natural Resources Defense Council; NAICS: 813312; Name: Sierra Club; NAICS: 813312

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Aug 25, 2015

Section: US

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1706908386

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Last updated: 2017-11-22

Database: The Wall Street Journal

City News: Judge Approves N.J. Settlement With Exxon Mobil

Author: King, Kate

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]26 Aug 2015: A.17.

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Superior Court Judge Michael Hogan described the settlement in his ruling as "fair, reasonable, in the public interest" and consistent with a state law that seeks to protect New Jersey's natural resources from contamination by petroleum products and other hazardous substances.

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A New Jersey judge approved a $225 million settlement on Tuesday between Gov. Chris Christie's administration and Exxon Mobil Corp. to end a legal battle over polluted sites, a deal environmentalists denounced as grossly inadequate.

Superior Court Judge Michael Hogan described the settlement in his ruling as "fair, reasonable, in the public interest" and consistent with a state law that seeks to protect New Jersey's natural resources from contamination by petroleum products and other hazardous substances.

Environmental groups criticized the ruling. In a statement, the New Jersey chapter of the Sierra Club accused Judge Hogan of "rubberstamp[ing] the biggest corporate subsidy in state history."

"This settlement is incomplete because it neglects to restore 1,500 acres of wetlands," said Jeff Tittel, the club's director. "We are down, but not out. We will continue to fight this sellout."

The state initially sought $8.9 billion from Exxon, and battled the oil company in court for 11 years before the parties notified the court of their proposed settlement in February. The litigation stemmed from allegations that Exxon, which owned and operated refineries in the Bayonne area for much of the 20th century, contaminated wetlands, meadows and waterways.

A spokeswoman for Mr. Christie's administration hailed the judge's decision as affirmation of what she called the state's "fair and historic settlement."

"The Christie administration has not only secured the largest environmental-damage recovery in state history, but also cemented Exxon Mobil's obligation to pay for the complete cleanup and remediation of these sites on top of this landmark payout," said Nicole Sizemore, a spokeswoman for Mr. Christie.

Tuesday's decision follows a 60-day public comment period, which ended June 5, and unsuccessful attempts by eight environmental groups and New Jersey state Sen. Raymond Lesniak to intervene in the case. The vast majority of the 16,013 public comments received by the court opposed the settlement, according to Judge Hogan's ruling.

Opponents said the settlement was far too meager to compensate for the damage done to northern New Jersey's wetlands.

"This is a multibillion-dollar gift to Exxon Mobil from Gov. Christie and his administration, at the expense of New Jersey residents," said Margaret Brown, an attorney for Natural Resources Defense Council, an environmental group.

An Exxon spokesman said the company lauds the decision.

"This settlement has brought this case to a fair and reasonable conclusion," company spokesman Alan Jeffers said in an email. "Both parties will now have the benefit of the certainty and finality that comes from this settlement."

Oil refining in Bayonne dates back to the late 1800s, when John D. Rockefeller's Standard Oil Co. constructed a pipeline from Pennsylvania to Bayonne, according to court records.

At its peak in 1936, the Bayonne refinery covered 650 acres and employed 5,000 workers.

A landmark 1911 U.S. Supreme Court decision forced the breakup of Standard Oil into 34 companies, including Jersey Standard, which changed its name to Exxon Corp. in the 1970s and continued to operate the northern New Jersey refineries.

The company began discussing environmental remediation with the state in the early 1990s, and as of December 2014 had spent more than $258 million on remediation in the Bayonne area, according to Judge Hogan's ruling.

Credit: By Kate King

Subject: Petroleum refineries; Petroleum industry; Litigation; Court decisions; Environmental protection; Wetlands; Natural resources; Settlements & damages

Location: New Jersey

People: Christie, Christopher J

Company / organization: Name: Natural Resources Defense Council; NAICS: 813312; Name: Sierra Club; NAICS: 813312; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 9190: United States; 4330: Litigation; 8510: Petroleum industry

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.17

Publication year: 2015

Publication date: Aug 26, 2015

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1706968349

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Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Shell, Exxon Ordered to Pay Groningen Earthquake Compensation; Earthquakes in the region began in 1991, and hundreds have been recorded in the subsequent period

Author: Maarten van Tartwijk

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Sep 2015: n/a.

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AMSTERDAM--A Dutch court ruled Wednesday that Royal Dutch Shell PLC and Exxon Mobil Corp must compensate homeowners for a drop in house prices caused by earthquakes linked to production at the Groningen gas field.

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AMSTERDAM--A Dutch court ruled Wednesday that Royal Dutch Shell PLC and Exxon Mobil Corp must compensate homeowners for a drop in house prices caused by earthquakes linked to production at the Groningen gas field.

The ruling could open the door to a wave of compensation claims against the energy companies, which operate the field through a joint-venture called the Nederlandse Aardolie Maatschappij BV, or NAM.

The court said NAM is responsible for earthquakes in the northern province of Groningen and that these have led to a decline in home values of "several percent." Homeowners should therefore be compensated even when they are not planning to sell their property, it said, adding "there is no reason not to do it now."

The lawsuit was filed by a group representing 900 homeowners and 12 housing associations.

Earthquakes in the region began in 1991, and hundreds have been recorded in the subsequent period; a total of 119 quakes were recorded in 2013 alone. Experts suggest the pumping of the Groningen field has deflated a porous gas-bearing reservoir deep below the surface, which has in turn led to a buildup of pressure along a fault zone, which is periodically released in sudden jolts.

NAM, which has acknowledged responsibility for a rise in earthquakes in the area, said it would study the ruling and consider any further steps. So far, the company has set aside [euro]1.2 billion ($1.4 billion) in part to compensate homeowners for damages to their property.

"We recognize the concerns of the residents and agree that in specific cases earthquakes can cause a decline in value," spokesman Sander van Rootselaar said.

The Groningen field is one of the world's biggest natural-gas reserves and a key source for Europe, accounting for roughly 10% of the European Union's total gas supply last year. But the Dutch government has restricted output in the area in recent years, after reports linked gas extraction to a rise in earthquakes.

In June, the government said production will be slashed to 30 billion cubic meters this year, substantially lower than a previous target of 39.4 billion cubic meters.

Write to Maarten van Tartwijk at maarten.vantartwijk@wsj.com

Credit: By Maarten van Tartwijk

Subject: Petroleum industry; Natural gas; Earthquakes

Company / organization: Name: European Union; NAICS: 926110, 928120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Sep 2, 2015

Section: World

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1708904977

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Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Mobil Begins Production at Erha North Offshore Nigeria Project; Oil giant affirms its forecast for 2% production growth this year

Author: Dulaney, Chelsey

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Sep 2015: n/a.

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Exxon Mobil Corp. said Wednesday that it has begun production at its new Erha North project offshore Nigeria five months ahead of schedule, while affirming its forecast for 2% production growth this year.

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Exxon Mobil Corp. said Wednesday that it has begun production at its new Erha North project offshore Nigeria five months ahead of schedule, while affirming its forecast for 2% production growth this year.

The deepwater project is located 60 miles offshore Nigeria and inclues seven wells, with expected peak production of 65,000 barrels of oil a day. It will be tied to an existing Erha North floating production, storage and offloading vessel, helping reduce infrastructure.

Exxon said the project came in ahead of schedule and $400 million under budget due to the performance of its Nigerian contractors.

The U.S. oil giant also on Wednesday affirmed its forecast for 2% production growth in 2015 to 4.1 million oil-equivalent barrels per day.

While Exxon's profit has tumbled in recent quarters amid the drop in crude prices, its production has continued to grow. In the second quarter , the company's profit tumbled 52%, while production improved 3.6% to 4 million oil-equivalent barrels per day.

Shares of Exxon, down 20% this year, added 1.5% to $73.98 a share in morning trading.

Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com

Credit: By Chelsey Dulaney

Subject: Petroleum industry; Oil exploration; Oilfield equipment & services

Location: Nigeria United States--US

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Sep 16, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1712600981

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Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon's Canadian Subsidiary Sees Output Gains from High-Cost Oil-Sands; Imperial Oil says new technology could double production from new oil-sands projects

Author: Dawson, Chester

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Sep 2015: n/a.

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The top executive at Exxon Mobil Corp.'s Canadian subsidiary on Wednesday said new technology has the potential to more than double production from a series of proposed oil-sands projects, a bullish signal for Canada's high-cost heavy oil operations even as it faces a slump in crude oil prices and falling investment.

Exxon subsidiary Imperial Oil Ltd. said pilot tests show a nearly 30% increase in production using a modified version of its steam-assisted gravity drainage, or SAGD, technology, which recovers deposits of heavy oil embedded in sand with injections of steam deep underground. The new techniques include adding a solvent to improve the flow of oil to surface, known as SA-SAGD, and generators that burn less natural gas to supply steam, Chief Executive Rich Krüger said.

Those innovations could boost output from each of at least seven proposed oil-sands well projects to 55,000 to 75,000 barrels a day in crude production, up from 30,000 to 40,000 barrels a day at current-generation well sites, Mr. Krüger said.

"This is bigger on a per phase basis than we've talked about in the past," Mr. Krüger told investors at a conference in Toronto, adding he sees the initiative as "a very large, long-term growth opportunity."

Aspen, the first of those planned projects, could start as soon as 2020. But Mr. Krüger said the company has yet to approve Aspen as it evaluates the business case for it and the others, each of which would cost about 2 billion Canadian dollars to develop.

The decision will come even as Imperial plans to cut its total investment budget in half over the next five years to about C$2.5 billion annually after splurging on two major oil-sands projects that recently began production. Those two operations--its Kearl surface mine and Nabiye well site--will boost the company's output by a combined 120,000 barrels of oil a day to a total of more than 400,000 barrels a day.

"We think we're commercially ready to go on SA-SAGD" technology, Mr. Krüger said, but he added the company is in no rush to make a decision on whether to move ahead. Imperial is currently assessing their cost, possible changes in Alberta's regulatory policies and the outlook for oil prices, he said.

Most new oil-sands well plants require benchmark U.S. crude prices above $67 a barrel to break even, which is well below current levels of around $45 a barrel, according to RBC Dominion Securities. Oil from Canada's oil sands is among the most expensive forms of crude to produce because it is difficult to extract, lower in quality than lighter grades and located in a remote area of northern Alberta.

Write to Chester Dawson at chester.dawson@wsj.com

Credit: By Chester Dawson

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Sep 23, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1715743698

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Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

PBF to Buy Southern California Refinery From Exxon for $537.5 Million; The 155,000-barrel-a-day refinery has been shut down since early 2015 because of fire damages

Author: Sider, Alison

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Sep 2015: n/a.

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The New Jersey-based refiner has a long history of buying ailing plants and turning them around. Since the company was founded in 2008 it has revived plants in Delaware, New Jersey and Ohio.

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PBF Energy Inc. agreed to buy a troubled refinery in southern California from Exxon Mobil Corp. for more than $537.5 million, including working capital valued at closing.

The deal is significant because the 155,000-barrel-a-day refinery in Torrance, outside of Los Angeles, was hobbled by an explosion in February that took out equipment critical to making gasoline. The plant makes 10% of California's gasoline supplies, and fuel prices in the state have soared since the refinery shut.

PBF said the refinery will be restored to full working order before the deal closes, which is expected to happen by mid-2016.

The New Jersey-based refiner has a long history of buying ailing plants and turning them around. Since the company was founded in 2008 it has revived plants in Delaware, New Jersey and Ohio.

This is the second refinery PBF has purchased from Exxon this year. In June, the company announced plans to buy a Louisiana refinery jointly owned by Exxon and Venezuela's national oil company in a $322 million deal.

Exxon said it decided to sell Torrance because the refinery no longer fit well with its other assets. The company isn't getting out of refining altogether. Exxon has five refineries in Texas, Louisiana, Illinois and Montana.

Together, PBF, which has long had its eye on acquiring plants in California, said its two Exxon refinery acquisitions will boost its overall fuel-making capacity by 60%.

They also bring new access to two large markets, the U.S. Gulf and West coasts.

The Torrance plant deal also comes with pipelines and petroleum storage terminals--assets that might be sold to an affiliated partnership, PBF Logistics LP, which owns energy infrastructure.

Tom O'Malley, the company's founder and executive chairman, told analysts last year that PBF was looking for buying opportunities in the state. "We are entering at a very attractive purchase price," he said.

California is isolated from other fuel markets by higher fuel standards aimed at curbing smog.

The state's stringent regulations on air quality make it difficult to import fuel from overseas to satisfy California's gasoline needs. Few plants outside the state make fuel that meets California standards.

Even as most American drivers have enjoyed paying at least $1 a gallon less for gasoline than they did a year ago, California drivers haven't benefited nearly as much. The explosion that damaged Torrance and other refinery maintenance work in the region helped push up fuel prices in the region. In recent weeks, prices have begun to drift lower, according to AAA's Daily Fuel Gauge Report.

California's average gasoline price was $2.97 a gallon on Wednesday, down five cents from last week, AAA data show. Only Alaska drivers pay more, with an average $2.98 a gallon. The national average gasoline price is 23% lower than California's at $2.28 a gallon.

Write to Alison Sider at alison.sider@wsj.com

Credit: By Alison Sider

Subject: Gasoline prices; Petroleum industry; Air pollution; Outdoor air quality; Petroleum refineries

Location: Louisiana California Ohio Delaware New Jersey Los Angeles California

Company / organization: Name: PBF Energy; NAICS: 324110; Name: PBF Logistics LP; NAICS: 486110, 486910, 493190

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Sep 30, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1717662973

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Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Energy Companies Face Tough Road Ahead; Exxon, Chevron, ConocoPhillips, Anadarko results likely to range from anemic profits to steep losses

Author: Cook, Lynn

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Oct 2015: n/a.

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Some of the biggest U.S. energy companies, including Exxon Mobil Corp., Chevron Corp., ConocoPhillips and Anadarko Petroleum Corp., are likely to report results that range from anemic profits to steep losses.

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Analysts expect to see a sea of red ink in the coming week as American energy producers begin reporting third-quarter financial results after a year of low oil and gas prices.

Some of the biggest U.S. energy companies, including Exxon Mobil Corp., Chevron Corp., ConocoPhillips and Anadarko Petroleum Corp., are likely to report results that range from anemic profits to steep losses. Oil prices languished under $50 a barrel for most of the three-month period that ended Sept. 30, down from over $90 in the same stretch last year.

The drop in crude prices over the past 15 months is especially challenging to small and midsize U.S. oil and gas companies, which will report between now and early November. Some won't survive this downturn, warned Paul Sankey, an energy analyst with Wolfe Research.

Even if oil and gas prices rebound early next year, as many energy mavens now predict, a full third of American oil and gas producers remain distressed because they borrowed too much money and chased too many expensive projects when prices were higher, Mr. Sankey said.

Earlier this month, Standard & Poor's downgraded ratings for 25 energy companies after cutting its assumptions on oil and gas prices. Companies that loaded up on debt when oil was trading around $100 a barrel are particularly vulnerable to having their funding cut off. Downgraded companies include major U.S. shale players Chesapeake Energy Corp., Whiting Petroleum Corp. and Denbury Resources Inc.

S&P also predicted that the future cash flow for Exxon and Chevron, which both report Friday, may not cover their debt loads at a level needed to maintain their sterling credit ratings. But Guy Baber, an analyst with energy investment bank Simmons & Company International, said Exxon's refining operations, which have been extremely profitable this year, should shield the company's earnings. He predicts Exxon will take advantage of sub-$50 oil to swallow up a struggling smaller rival with promising American shale acreage, perhaps in Texas.

"No company is better positioned to withstand and capitalize upon a prolonged down-cycle," he said.

Energy's downturn may not be as prolonged as some people think, said James West, senior managing director for Evercore ISI, an investment banking advisory firm.

"We have never been in the 'lower-for-longer' camp," Mr. West said of the analysts who now forecast that crude-oil prices could stay low for another year or two--or even longer. "Demand is rising, supply is falling," he said. "We think a shift in sentiment is imminent."

But Paal Kibsgaard, chief executive of Schlumberger Ltd., the largest oil-field service company in the world, recently told investors that despite energy's well known boom-bust cycles, this one "is shaping up to be the most severe downturn in the industry for decades."

The company helps oil-and-gas producers drill and frack wells from West Texas to western Siberia, making it an industry bellwether. Schlumberger's third-quarter profit dropped 49% to less than $1 billion as many clients--from global energy players to U.S. wildcatters--simply quit scouting for new oil prospects.

Mr. Kibsgaard predicts oil prices will rise in 2016, but said the industry has suffered a setback that will be reversed slowly. "I think the market is underestimating how long this period is going to take."

There will be a significant time lag between oil prices rising and companies investing in new drilling, Mr. Kibsgaard said, adding that energy companies will first want to use money reaped from higher prices to pay down their debts. That mentality could lead to an oil-price spike down the road if not enough new fuel supplies are tapped in the near-term.

The Week Ahead looks at coming corporate events.

Write to Lynn Cook at lynn.cook@wsj.com

Credit: By Lynn Cook

Subject: Petroleum industry; Investment banking; Crude oil prices; Energy industry; Natural gas utilities

Location: United States--US

Company / organization: Name: Schlumberger Ltd; NAICS: 541512, 334419, 334513, 511210, 213111, 213112; Name: Chevron Corp; NAICS: 324110, 211111; Name: Standard & Poors Corp; NAICS: 541519, 511120, 523999, 561450; Name: Whiting Petroleum Corp; NAICS: 211111; Name: Chesapeake Energy Corp; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Oct 23, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1725907456

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Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

It's Always Exxon's Fault; Why climate warriors keep returning to the same whipping boy.

Author: Jenkins, Holman W, Jr

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Oct 2015: n/a.

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Abstract: None available.

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In 2009, the New York Times was forced to issue a 328-word correction (a retraction in all but name) because a reporter, assailing an industry group, could not distinguish the proposition "the greenhouse effect exists" from the proposition "any and all environmentalist proposals for dealing with a possible human influence on the greenhouse effect must be met uncritically."

Here we go again, in the form of an exposé of Exxon by the website InsideClimateNews.org, echoed by the Los Angeles Times and other media organs. See if you can follow the logic exhibited in the ICN series.

Because Exxon concerned itself with how a warming Arctic might affect the safety of its pipelines and drilling structures there, Exxon is a hypocrite on climate change.

Because Exxon refrained from developing an Indonesian gas field that would have meant releasing or capturing a large amount of associated carbon dioxide, Exxon is a hypocrite on climate change.

Exxon, in the early 1980s, adapted then-existing climate models to estimate that a doubling of atmospheric carbon would lead to a temperature increase of 1.5 to 4.5 degrees Celsius. Then as now the company also judged such models not reliable enough to serve as the basis for large and costly policy actions. So Exxon is a hypocrite.

Here's the interesting part. These studies took place 35 years ago. In completely unrelated comments, nobody's idea of a "denier," Harvard's Martin Weitzman, co-author of the book "Climate Shock," recently complained about the lack of climate modeling progress in "35 years." He cited the U.N. climate panel's latest temperature forecast, which is identical (i.e., unimproved in precision) to Exxon's three decades earlier.

Through six installments ICN kept promising the goods on how Exxon's public advocacy conflicted with its private understanding of climate change. The series essentially delivered nothing.

An Exxon spokesman is quoted as saying, "The risk of climate change is real and warrants action."

Exxon's CEO in the 1990s, Lee Raymond, the villain of the series, is quoted as saying, "Many people believe that global warming is a rock-solid certainty. But it's not."

The company's position on a carbon tax is that . . . it should be revenue neutral.

The real smoking gun isn't the Exxon revelations but the climate community's hysterical reaction to them. Veteran campaigner Bill McKibben and Democratic presidential candidate Bernie Sanders demand the Obama administration launch a criminal investigation.

A Washington Monthly writer, in a blog post for the psychiatric textbooks, delivers himself of this remarkable paragraph: "ExxonMobil's deceit continues to this very day. The company still insists that it supports federal revenue-neutral carbon tax legislation. How can we possibly take their word for it, after the company spent years attacking the abundant scientific evidence pointing to the critical need for such legislation?"

Just spend a minute parsing that one.

ICN calls its Exxon series "the road not taken." Were its reporters really the free thinkers they imagine themselves to be, however, they would put aside such crass exercises in orthodoxy enforcement. They would investigate exactly when and how the climate movement itself made its ill-advised turn toward frantic exaggeration, false certainty and vilification of anybody who raises scientific caveats.

They're right: Exxon was once a respected participant in the debate. It wasn't Exxon that equated its opponents to holocaust deniers. The $16 million that Exxon spent between 1998 and 2005 to support organizations that pointed out the inadequacies of climate models would have bought less than 1% of the media attention Al Gore was getting at the time.

Talk about a road not taken. A calmer discussion based on uncertainties, risks and benefits might long ago have allowed the introduction of a modest carbon tax in the only way it would be politically salable--by using the proceeds to reduce taxes on investment and work.

Washington might have set itself a clear if modest agenda to fund basic battery research, rather than squander taxpayer dollars on Tesla and Solyndra.

All this might have been below-the-fold, inside-the-paper news, rather than turning climate science into another polarizing proxy for irreconcilable left-right partisan differences on economics.

But the truth is, people like Mr. McKibben can't afford practical, meaningful progress--because it would be unnoticeable and undramatic. Modest tweaks to incentives, then seeing how energy technology and the energy economy adapted over time, would not fulfill their need for a pressing global crisis that casts them as moral warriors (well-funded ones) whose victory over deniers and climate criminals is always just around the corner--and must remain so in order to keep the money, media attention and political fealty flowing.

Credit: By Holman W. Jenkins, Jr.

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Oct 27, 2015

column: Business World

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1727468471

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Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Results Slide Less Than Expected; Revenue and profit decline, but shares rise premarket

Author: Dulaney, Chelsey

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Oct 2015: n/a.

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Exxon Mobil Corp. said revenue and profit slid in its third quarter as commodity prices tumbled, but results came in above Wall Street expectations as the largest U.S. oil company cut back on spending.

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Exxon Mobil Corp. said revenue and profit slid in its third quarter as commodity prices tumbled, but results came in above Wall Street expectations as the largest U.S. oil company cut back on spending.

Shares of Exxon, down 11% this year, added 1.7% in premarket trading.

The Irving, Texas, company reported a profit of $4.24 billion, or $1.01 a share, down from $8.07 billion, or $1.89 a share, a year earlier.

Revenue fell 37% to $67.34 billion.

Analysts polled by Thomson Reuters expected a per-share profit of 89 cents and revenue of $63.75 billion.

Profit in the exploration and production, or upstream, business plunged 79% to $1.36 billion in the latest quarter, as its U.S. division swung to a loss of $422 million.

But Exxon was again helped by fatter profit in its downstream and chemicals divisions, which are helped by low prices for oil and gas. In the latest quarter, refining and marketing earnings, or downstream, essentially doubled to $2.03 billion. Exxon cited higher margins.

Chemical earnings edged up to $1.23 billion from $1.20 billion a year earlier, with growth moderated by foreign exchange impacts.

Exxon said it cut its capital spending by 22% from the prior year to $7.67 billion.

Exxon has moved to conserve cash in a sign that it doesn't expect a quick rebound in crude prices. The company has announced it would slash its capital spending by this year and reduce its stock buybacks in the near term.

Exxon said it plans to spend about $500 million on share buybacks in the current quarter, matching the reduced level it targeted in the third quarter.

Meanwhile, the company continues to grow its production. On an oil-equivalent basis, upstream production grew 2.3% from the prior year.

Chevron Corp., the second-biggest U.S. oil company in market value behind Exxon, is also set to report its earnings on Friday. On Thursday, ConocoPhillips reported a loss of $1.1 billion amid heavy impairments and announced plans to trim its spending further.

Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com

Credit: By Chelsey Dulaney

Subject: Petroleum industry; Corporate profits; Capital expenditures; Losses

Location: Texas United States--US

Company / organization: Name: ConocoPhillips Co; NAICS: 211111; Name: Chevron Corp; NAICS: 324110, 211111; Name: Thomson Reuters; NAICS: 511110, 511140

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Oct 30, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1728255795

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1728255795?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Chevron, Exxon Cut Spending on Oil Price Slide; Oil majors slash costs, cut jobs to stay ahead of plunging revenues

Author: Spindle, Bill

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Oct 2015: n/a.

ProQuest document link

Abstract:

Chevron Corp. said it would cut up to 10% of its workforce and, along with Exxon Mobil Corp., cut its future capital spending further as the two oil giants try to weather a 50% drop in oil prices over the past year. Royal Dutch Shell posted a $6.1 billion loss in the third quarter after its decision to walk away from exploring the Arctic for oil and exploiting Canada's oil sands resulted in $7.9 billion in charges.

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Chevron Corp. said it would cut up to 10% of its workforce and, along with Exxon Mobil Corp., cut its future capital spending further as the two oil giants try to weather a 50% drop in oil prices over the past year.

Both companies managed to make a profit during the third quarter, bolstered by refining operations and chemical divisions that are helped by low oil prices. But the two biggest U.S. energy companies were forced to slash costs to stay ahead of plunging revenues from their oil-and-gas production businesses.

Chevron, the second-largest energy company in the U.S. by revenue, said it would lay off between 6,000 and 7,000 employees. The San Ramon, Calif., company is trying to dial back its capital spending by 25% next year to between $25 billion and $28 billion.

John Watson, Chevron's chief executive, told analysts that job reductions would be concentrated in Australia as the company completes construction of two giant, liquefied natural-gas projects. Some cuts also will come from West Africa as Chevron reorganizes operations in Angola.

Chevron also predicted further spending cuts in 2017 and 2018 that would bring its capital expenditures down to as low as $20 billion. That is a dramatic shift from a year ago, when Chevron was booking the most profit per barrel among the world's top publicly-traded oil firms, with its sights set on generating more cash than larger rivals Exxon and Royal Dutch Shell PLC.

Still, results for the quarter fell less than Wall Street had expected. Chevron reported earnings of $2.04 billion, or $1.09 a share, down 64% from $5.6 billion a year earlier. Revenue for the period dropped 37% to $34.32 billion.

"The grim reality is that when you have prices in the mid-$40s as we did in the third quarter, it's tough sledding," Mr. Watson said. "It's a challenge, but we're taking it on."

Guy Baber, an analyst with energy investment bank Simmons & Company International, said Chevron is not alone. So far this year the 14 major oil companies he follows are collectively spending more on dividends and capital expenditures than their cash flow generation by $90 billion, or 11 percent, he said. "They'll be outspending significantly next year as well in a $50 per barrel oil price world," he said. "That is forcing them to make difficult decisions, and significant cuts to capital spending. And it will have an impact on production," he said.

Chevron, for example, revised its oil production target for 2017 down by between 100,000 and 200,000 barrels a day, Mr. Watson told analysts.

The company said it still plans to be able to meet its dividend payment with cash flow for 2017.

Meanwhile, Exxon confirmed it had cut third-quarter capital spending by 22% from the prior year to $7.67 billion. As costs to drill and pump oil and gas continue to fall in the low-price oil environment, the biggest U.S. oil company said it expects to shave another $1 billion off its capital expenses and $7 billion from its operating expenditures.

"We're always working to reduce the structural cost on our business," Jeff Woodbury, the company's head of investor relations, told analysts.

The Irving, Texas, company reported a profit of $4.24 billion, or $1.01 a share, down 48% from $8.07 billion a year prior. Revenue fell 27% to $67.34 billion.

Exxon's profit in the exploration and production division fell 79% to $1.36 billion in the latest quarter, and its U.S. division became unprofitable, booking a loss of $422 million. Still, with fatter profits from its fuel refineries that doubled to $2.03 billion, Exxon managed to beat Wall Street expectations.

Chevron's stock, down 20% this year, gained 1% to $90.88 while Exxon was up less than 1% to $82.74, both in 4 p.m. trading on Friday.

Other large global oil companies also reported sharply lower earnings earlier this week as they gave up on some ventures that no longer make sense when crude-oil prices are under $50 a barrel.

Royal Dutch Shell posted a $6.1 billion loss in the third quarter after its decision to walk away from exploring the Arctic for oil and exploiting Canada's oil sands resulted in $7.9 billion in charges. ConocoPhillips, the biggest U.S. shale driller, reported a loss of $1.1 billion and announced new plans to trim spending.

Smaller companies continue to shed jobs , too. Calgary-based Husky Energy Inc., which operates oil sand mines and runs refineries in the U.S. and Canada, told investors on Friday that it cut 1,400 workers and will extend a companywide salary freeze.

Forecasts for oil prices vary, but many banks and analysts predict that prices will stay lower for longer through next year. Goldman Sachs Group has said oil prices may need to drop as low as $20 a barrel before the supply glut that is putting pressure on the market is cleared. The investment bank expects Brent crude, which is considering the global oil benchmark price, to trade under $50 a barrel next year.

Chelsey Dulaney contributed to this article.

Corrections & Amplifications

Chevron Corp. said it plans to cover its 2017 dividend from cash flow. An earlier version of this article said the target was next year.

Write to Bill Spindle at bill.spindle@wsj.com

Credit: By Bill Spindle

Subject: Petroleum industry; Capital expenditures; Cash flow; Corporate profits; Prices; Energy economics; Natural gas; Petroleum production; Energy industry

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Oct 30, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1728299122

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1728299122?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permissio n.

Last updated: 2017-11-22

Database: The Wall Street Journal

How Big Oil Can Swing Big Dividends; Exxon Mobil, Chevron can weather low oil prices but there's always a catch

Author: Jakab, Spencer

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Oct 2015: n/a.

ProQuest document link

Abstract:

Integrated oil and gas companies the world over are tightening belts by slashing staff and spending and even contemplating selling the family silver as oil prices remain low.

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Someone forgot to tell Exxon Mobil and Chevron that aristocrats are supposed to live on the other side of the pond.

Not only did the stock market doff its hat to both companies on Friday when they reported third-quarter results that handily beat expectations. It is signaling that it doesn't mind those companies putting on airs--for now, at least.

Integrated oil and gas companies the world over are tightening belts by slashing staff and spending and even contemplating selling the family silver as oil prices remain low. But the two big U.S. supermajors still can call themselves "dividend aristocrats" by surpassing the quarter century mark in raising their dividends annually. Though neither Royal Dutch Shell nor BP are in the S&P 500, disqualifying them from that distinction, their payout policies would have kept them from becoming peers anyway.

The fear is that the peasants may become restless on both sides of the Atlantic if big oil companies continue to distribute more cash than they earn while allowing opportunities to pass them by. All are committed to multiyear projects, but the cost of obtaining a barrel of oil or a cubic foot of gas reserves is cheaper than it has been in years through the checkbook than the drill bit. An index of oil and gas exploration companies maintained by S&P Dow Jones Indices is off by 56% since June 2014.

Doing deals and maintaining chunky dividends may be difficult for some, though. Moody's said in September that integrated oil producers globally will have an $80 billion cash shortfall this year. Even so, Shell's chief said recently he was "pulling out all the stops" to protect the payout and Chevron's chief said Friday that the producer's "first priority is to maintain the dividend."

In that respect, the U.S. majors would appear to be at a disadvantage since they actually are committed to raising and not just maintaining dividends. But appearances can be deceiving.

Their growing reliance on share buybacks in recent years means slashing those--Chevron stopped them entirely and Exxon has cut them by about 85%--can preserve cash and the favor of coupon-clippers. Between 1995 and 2000, a weak period for energy prices, Exxon and Chevron paid about 30% of operating cash flow as dividends. In the past 10 years both averaged under 20%. Assuming cost savings and a slight rebound in prices, both will pay out a third of operating cash flow as dividends in 2016.

Noblesse oblige is less of a burden than it seems.

Write to Spencer Jakab at spencer.jakab@wsj.com

Credit: By Spencer Jakab

Subject: Petroleum industry; Cash flow; Cost control; Dividends; Natural gas utilities

Location: United States--US

Company / organization: Name: Moodys Investors Service Inc; NAICS: 522110, 523930, 561450; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Oct 30, 2015

column: Heard on the Street

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1728304205

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1728304205?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Business News: Chevron, Exxon Retrench Again

Author: Spindle, Bill

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]31 Oct 2015: B.3.

ProQuest document link

Abstract:

Chevron Corp. said it would cut up to 10% of its workforce and, along with Exxon Mobil Corp., reduced its future capital spending further as the two oil giants try to weather the drop in oil prices over the past year.

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Full text:  

Chevron Corp. said it would cut up to 10% of its workforce and, along with Exxon Mobil Corp., reduced its future capital spending further as the two oil giants try to weather the drop in oil prices over the past year.

Both companies managed to make a profit during the third quarter, bolstered by refining operations and chemical divisions that are helped by low oil prices. But the two biggest U.S. energy companies were forced to slash costs to stay ahead of declining revenues from oil-and-gas production businesses.

Chevron, the second-largest energy company in the U.S. by revenue, said it would lay off between 6,000 and 7,000 employees. The San Ramon, Calif., company is trying to dial back its capital spending by 25% next year to between $25 billion and $28 billion.

John Watson, Chevron's chief executive, told analysts that job reductions would be concentrated in Australia as the company completes construction of two giant, liquefied natural-gas projects. Some cuts also will come from West Africa as Chevron reorganizes operations in Angola.

Chevron also predicted further spending cuts in 2017 and 2018 that would bring its capital expenditures down to as low as $20 billion. That is a dramatic shift from a year ago, when Chevron was booking the most profit per barrel among the world's top publicly traded oil firms, with its sights set on generating more cash than larger rivals Exxon and Royal Dutch Shell PLC.

Still, results for the quarter fell less than Wall Street had expected. Chevron reported earnings of $2.04 billion, or $1.09 a share, down 64% from $5.6 billion a year earlier. Revenue for the period dropped 37% to $34.32 billion.

"The grim reality is that when you have prices in the mid-$40s as we did in the third quarter, it's tough sledding," Mr. Watson said.

Chevron revised down its oil production target for 2017 by between 100,000 and 200,000 barrels a day, Mr. Watson told analysts. The company said it still planned to be able to meet its dividend payment with cash flow for 2017.

Meanwhile, Exxon confirmed it had cut third-quarter capital spending by 22% from the prior year to $7.67 billion. As costs to drill and pump oil and gas continue to fall, the biggest U.S. oil company said it expected to shave another $1 billion off its capital expenses and $7 billion from its operating expenditures. The company reported a profit of $4.24 billion, or $1.01 a share, down 48% from $8.07 billion a year prior. Revenue fell 27% to $67.34 billion.

Exxon's profit in the exploration and production division fell 79% to $1.36 billion.

Credit: By Bill Spindle

Subject: Petroleum industry; Capital expenditures; Layoffs

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Chevron Corp; NAICS: 211111, 324110

Classification: 8510: Petroleum industry; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2015

Publication date: Oct 31, 2015

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1729061576

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1729061576?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Mobil Gets Subpoena From N.Y. Regarding Climate-Change Research; Attorney General Schneiderman seeks information about research and response to climate change

Author: Cook, Lynn

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Nov 2015: n/a.

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Abstract:

Exxon Mobil Corp. has received a subpoena from the New York attorney general's office seeking information about the company's research on and response to climate change over several decades, the company said Thursday.

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Exxon Mobil Corp. has received a subpoena from the New York attorney general's office seeking information about the company's research on and response to climate change over several decades, the company said Thursday.

The investigation was confirmed by New York Attorney General Eric Schneiderman's office, which declined further comment. The probe is focused on potential consumer and securities fraud stemming from Exxon's public statements on global warming.

The company is weighing how to respond, according to spokesman Alan Jeffers, who said Exxon has long disclosed information about the business risk of climate change in its reports to shareholders and regulators. The company is among the world's largest oil and gas producers.

"We unequivocally reject allegations that Exxon Mobil suppressed climate change research contained in media reports that are inaccurate distortions of Exxon Mobil's nearly 40-year history of climate research," Mr. Jeffers said in an emailed statement.

InsideClimate News, a nonprofit journalism organization that specializes in environmental and energy coverage, and other news media have published reports since September detailing Exxon's early research on global warming in the 1970s and noting that the company later supported groups trying to raise questions about climate science.

"Exxon has said that it's inaccurate and yet they have not asked for any corrections," said Neela Banerjee, one of the authors of the InsideClimate series.

In recent years, Exxon has said the risks of climate change are real and should be addressed.

"We have been engaged in a two-pronged approach: One is working to improve scientific understanding and the other is we've been involved in policy discussions," said Kenneth Cohen, vice president of public and government affairs for Exxon. The subpoena was reported earlier Thursday by the New York Times.

New York's investigation into climate-change disclosures started with Peabody Energy Corp., one of the largest coal companies in the world, which first told investors about its subpoena last year.

Vic Svec, a spokesman for Peabody, said the company "continues to work with the New York Attorney General's office regarding our disclosures, which have evolved over the years."

The probe could expand to involve more companies, according to a person familiar with the matter.

Write to Lynn Cook at lynn.cook@wsj.com

Credit: By Lynn Cook

Subject: Attorneys general; Climate change

Location: New York

People: Schneiderman, Eric

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: New York Times Co; NAICS: 511110, 511120, 515112, 515120; Name: Peabody Energy Corp; NAICS: 212112; Name: InsideClimate News; NAICS: 519130

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Nov 5, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1730324341

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Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Business News: Exxon Gets Subpoena On Climate

Author: Cook, Lynn

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]06 Nov 2015: B.6.

ProQuest document link

Abstract:

Exxon Mobil Corp. has received a subpoena from the New York attorney general's office seeking information about the company's research on and response to climate change over several decades, the company said Thursday.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. has received a subpoena from the New York attorney general's office seeking information about the company's research on and response to climate change over several decades, the company said Thursday.

The investigation was confirmed by New York Attorney General Eric Schneiderman's office, which declined further comment. The probe is focused on potential consumer and securities fraud stemming from Exxon's public statements on global warming.

The company is weighing how to respond, according to spokesman Alan Jeffers, who said Exxon has long disclosed information about the business risk of climate change in its reports to shareholders and regulators. The company is among the world's largest oil and gas producers.

"We unequivocally reject allegations that Exxon Mobil suppressed climate change research contained in media reports that are inaccurate distortions of Exxon Mobil's nearly 40-year history of climate research," Mr. Jeffers said in an emailed statement.

InsideClimate News, a nonprofit journalism organization and other news media have published reports since September detailing Exxon's early research on global warming in the 1970s and noting that the company later supported groups trying to raise questions about climate science.

"Exxon has said that it's inaccurate and yet they have not asked for any corrections," said Neela Banerjee, one of the authors of the InsideClimate series.

In recent years, Exxon has said the risks of climate change are real and should be addressed.

Credit: By Lynn Cook

Subject: Climate change; Petroleum industry; Investigations; Fraud; Global warming

Location: New York City New York

People: Schneiderman, Eric

Company / organization: Name: InsideClimate News; NAICS: 519130; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 8510: Petroleum industry; 9190: United States; 4300: Law

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.6

Publication year: 2015

Publication date: Nov 6, 2015

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1730555130

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1730555130?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

In Exxon War, Bamboozled by Greenies; Journalists discover (and misrepresent) what the oil giant has been trying to tell them for years.

Author: Jenkins, Holman, Jr

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Nov 2015: n/a.

ProQuest document link

Abstract: None available.

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Scurry on board the Exxon prosecution express. Lest they be left behind and called "deniers," Bernie Sanders, Martin O'Malley, the attorney general of New York and Al Gore this week all demanded criminal investigation of Exxon Mobil as a result of recent media "exposés."

Hillary Clinton in New Hampshire on Thursday agreed, saying, "There's a lot of evidence that they misled people."

Not one of these worthies likely examined the evidence, which tells a story quite different from the claim that Exxon somehow concealed its understanding of the climate debate. But the hurdle rate for "investigative" journalism has apparently become low. The allegedly damning documents that the Los Angeles Times and the website Inside Climate News (ICN) claim to have unearthed were published by Exxon itself, in peer-reviewed journals, on its website, and in archives created by Exxon for public use.

Technically, the reporters wallow in the equivocation fallacy. Uncertainty about whether X=2 is not the same as uncertainty about whether 2+2=4. Acknowledging and even studying man's impact on the climate, as Exxon has done and continues to do, is not tantamount to endorsing a green policy agenda of highly questionable value.

And that's the real problem. Read closely and the accusation isn't really that Exxon misled the public by emphasizing the uncertainties of climate science, which are real. It's that Exxon refused to sign up for a vision of climate doom that would justify large and immediate costs to reduce fossil fuel use.

This fantasy is summed up in the ICN series by Penn State climatologist Michael Mann, who is quoted as saying, "All it would've taken is for one prominent fossil fuel CEO to know this was about more than just shareholder profits."

But wait, hasn't this experiment been run? In the early 2000s, BP CEO John Browne began sounding a climate alarm. Ron Oxburgh, the chairman of Shell, gave a speech warning of planetary doom. In 2007, Alcoa, GE, Duke Energy, Ford, DuPont and others endorsed a U.S. cap-and-trade bill. All this failed to move the ball in two successive congresses, though, because Senate Democrats (the second time joined by President Obama) didn't want to be blamed for jacking up gasoline prices.

The same experiment has also been run globally. Out of 196 countries, 196 have concluded that there is no way, with current technology, to take a big enough whack out of carbon-dioxide emissions at a cost their societies would be prepared to bear.

Even Mr. Obama's decision on Friday to nix the Keystone XL pipeline came at a time of low gas prices when he will never face voters again, and in full knowledge that his decision won't impede Canada's development of its oil sands.

The narrative of Exxon's supposedly criminal deceit may be loopy, but save your real contempt for the climate lawyers now rubbing their hands over a Big Tobacco-style lawsuit. In effect, their cynical reasoning is that Exxon can be punished for failing to conceal its awareness of the climate debate.

But why stop at Exxon? President Obama is aware of the threat of climate change--he talks about it all the time--yet has presided over an expansion of oil and gas leasing. Vice President Al Gore endlessly harped on climate change--yet when confronted with a modest uptick in gasoline prices during his presidential run, insisted that President Clinton open the strategic reserve to keep gas prices low.

Maybe the tobacco analogy is apt after all. Recall that the result of government lawsuits wasn't to ban tobacco use but to make government (and organized crime) the main beneficiary of tobacco revenues. The U.S. government controls 31% of America's mineral rights, and has 42,000 drilling leases in effect covering 80 million acres. Federal lands produce 41% of America's coal output. Elsewhere, governments control 100% of mineral rights. Wherever it operates these days, Exxon is mainly an agent for governments determined to realize oil revenues regardless of any climate fears.

But the big lie here is that any Exxon spectacle would be aimed at advancing the cause of climate policy anyway. Especially sad is the decision by Fred Krupp of the Environmental Defense Fund to sign a group letter calling for a criminal inquiry, though he mealy-mouthed his participation by saying "We don't have all the facts. We're not prejudging what happened."

Mr. Krupp was last seen blaming the "shrillness that has permeated our advocacy" for the Senate defeats, and calling for a "more reasoned" and "calmer discussion" that is diametrically the opposite of the Exxon witch trial now being whipped up.

At least until this week, Mr. Krupp was an outlier, devoting himself to the coalition-building that is indispensable for real policy progress (and Exxon for the past six years has been a public supporter of a carbon tax). But Mr. Krupp's fellow climate campaigners clearly have other priorities.

Credit: By Holman Jenkins, Jr.

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Nov 6, 2015

column: Business World

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1731128701

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1731128701?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Prosecuting Climate Dissent; Progressives target Exxon for punishment over its research.

Author: Anonymous

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Nov 2015: n/a.

ProQuest document link

Abstract:

[...]regarding climate change, there isn't a single death anywhere in the world that can be proven to result from an increase in global temperatures caused by the burning of fossil fuels, never mind fuels marketed specifically by Exxon.

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Sheldon Whitehouse got his man. The Rhode Island Senator has been lobbying for prosecutions of oil and gas companies over climate change, and New York Attorney General and progressive activist Eric Schneiderman has now obliged by opening a subpoena assault on Exxon Mobil. This marks a dangerous new escalation of the left's attempt to stamp out all disagreement on global-warming science and policy.

Progressives have been losing the political debate over climate change, failing to pass cap and trade even when Democrats had a supermajority in Congress. So they have turned to the force of the state through President Obama's executive diktats and now with the threat of prosecution. This assault won't stop with Exxon. Climate change is the new religion on the left, and progressives are going to treat heretics like Cromwell did Catholics.

***

We mention Mr. Whitehouse because he has been the lead Cromwell in calling for the use of the RICO (Racketeer Influenced and Corrupt Organizations) statute, a law created to prosecute the mafia, to bring civil cases against companies that fund climate research of which he disapproves. After we called him out in a recent editorial, Mr. Whitehouse denounced us on the Senate floor and compared everyone who disagrees with him to tobacco companies.

The tobacco analogy is instructive, though not in the way Mr. Whitehouse intends. The Centers for Disease Control and Prevention says that cigarette smoking causes more than 480,000 deaths each year in the United States. The harm from tobacco is manifest and has been for decades. These columns have always acknowledged this reality, albeit that it's also a legal product that individuals can choose to use at their own risk.

When government in the 1990s forced tobacco companies to pay for the Medicaid costs of smoking-related diseases, the result was to make politicians business partners with the Marlboro Man in steering hundreds of billions of dollars in smoking revenues to federal and state coffers. Mr. Whitehouse may covet a similar revenue gusher in the oil patch.

But regarding climate change, there isn't a single death anywhere in the world that can be proven to result from an increase in global temperatures caused by the burning of fossil fuels, never mind fuels marketed specifically by Exxon. If human use of fossil fuels is responsible for deaths, then prosecutors should go after Al Gore for flying private jets and Mr. Obama for taking credit for the shale-drilling boom. Even the corrupt American tort system still requires some evidence of harm and specific cause.

This may explain why we're told that Mr. Schneiderman doesn't see how he can prove harm from fossil fuels. So instead of RICO he appears to be focused on the Martin Act, the appalling New York state law enacted in 1921 to prosecute stock-sale boiler rooms. The Martin Act doesn't require prosecutors to prove intent to defraud, which is why it was a favorite tool of the Empire State's disgraced former AG Eliot Spitzer.

The law also doesn't require the AG to prove that any particular Exxon investor was harmed and he doesn't need probable cause to commence an investigation. So Mr. Schneiderman seems to be searching for anything from the Exxon files to suggest the company knew more than it was telling investors about the risks of climate change. He's demanding Exxon's documents on climate research from 1977 to 2015, including how the research was used in business projections, how it was described to investors and the public, and how the company communicated on this topic with outside groups such as trade associations.

The Schneiderman investigation follows recent reports in the progressive website Inside Climate News and the Los Angeles Times suggesting that Exxon scientists have known for years that doom is at hand but have not shared this information with the public. The press reports selectively quote from internal Exxon documents to make their case. Exxon has responded by posting quoted documents in their entirety on its website to allow the public to judge.

For example, the L.A. Times characterized an Exxon employee's presentation to the board in 1989 as reporting that "scientists generally agreed gases released by burning fossil fuels could raise global temperatures significantly." But the newspaper didn't quote the part where the Exxon employee noted, "In spite of the rush by participants in the greenhouse debate to declare that the science has demonstrated the existence" of an increase in the natural greenhouse effect due to human activities, "I do not believe such is the case."

***

Even with the fearsome power of the Martin Act, this investigation appears built for media consumption more than courtroom success. There are no "facts" about the eventual extent and impact of climate change that Exxon or anyone else can hide, because inside or outside the company there are only estimates based largely on computer models.

And if the Exxon files reveal various competing conjectures, even in New York it still isn't illegal to conduct scientific research. Exxon says its scientists have published more than 50 papers on climate-related research in peer-reviewed publications. Exxon has also been explicit in its financial disclosures that the politics of climate change poses potential risks to investors.

By the way, in 2013 the United Nations Intergovernmental Panel on Climate Change reduced the lower end of its forecasted range of global temperature increases due to carbon emissions. Will Mr. Schneiderman subpoena the U.N. to find out when officials first learned that climate change might not be as dramatic as they expected?

Subject: Fossil fuels; Climate change; Global warming; Investments; Smoking; Tobacco; Natural gas utilities

Location: New York

People: Gore, Albert Jr

Company / organization: Name: Congress; NAICS: 921120; Name: Los Angeles Times; NAICS: 511110; Name: Centers for Disease Control & Prevention--CDC; NAICS: 923120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Nov 8, 2015

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1731707897

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1731707897?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

We Seek the Facts on Exxon's Climate Studies; I took the rare step of endorsing a civil probe because the stakes are extraordinarily high, and I don't see any other way to get those facts on the table.

Author: Anonymous

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Nov 2015: n/a.

ProQuest document link

Abstract:

In his "In Exxon War, Bamboozled by Greenies" (Business World, Nov. 7), Holman Jenkins, Jr. accuses me and the organization I lead, the Environmental Defense Fund, of turning our backs on our core philosophy of coalition-building because I endorsed a federal probe of Exxon Mobil.

Links: 360 Link to Full Text

Full text:  

In his "In Exxon War, Bamboozled by Greenies " (Business World, Nov. 7), Holman Jenkins, Jr. accuses me and the organization I lead, the Environmental Defense Fund, of turning our backs on our core philosophy of coalition-building because I endorsed a federal probe of Exxon Mobil. I did not call for a criminal investigation, as Mr. Jenkins claims, and the company's opposition to climate solutions isn't the issue here.

I called for a civil fact-finding probe because I am troubled by detailed news reports which strongly suggest that since the late 1970s Exxon Mobil's staff scientists have been privately briefing top executives on the realities of climate change, and that the executives have been making business decisions based on those realities, while spending tens of millions of dollars to actively mislead the public and investors. The public deserves to know the facts. I took the rare step of endorsing a civil probe because the stakes are extraordinarily high, and I don't see any other way to get those facts on the table.

The EDF's commitment to corporate partnerships, which has led to groundbreaking alliances with McDonald's, FedEx, Wal-Mart, AT&T and many others, gives us a responsibility to speak up when this kind of serious allegation surfaces. Mr. Jenkins accuses me of joining a rush to judgment and dismisses my public statement which made clear that is not the case. But I meant what I said. We don't have all the facts about what Exxon knew, and we are not prejudging what happened.

Fred Krupp

President

Environmental Defense Fund

Washington

Subject: Chemical industry; Environmental regulations

People: Krupp, Fred

Company / organization: Name: FedEx Corp; NAICS: 484110, 492110, 551114; Name: Wal-Mart Stores Inc; NAICS: 452112, 452910; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Nov 13, 2015

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1732873672

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1732873672?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Mobil Top Public Affairs Executive to Retire in January; Ken Cohen, who has held his post since 1999, reaching mandatory retirement age

Author: Armental, Maria

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Nov 2015: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp.'s Ken Cohen, who was the public face and voice for the largest energy producer in the U.S., plans to retire on Jan. 1, the company said Friday.

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Exxon Mobil Corp.'s Ken Cohen, who was the public face and voice for the largest energy producer in the U.S., plans to retire on Jan. 1, the company said Friday.

Mr. Cohen, who joined Exxon in 1977, had held his current post as vice president of public and government affairs, since 1999. He will turn 65 in January, the company's mandatory retirement age.

Mr. Cohen made the company's case on such matters as the environment and domestic oil exports . He also runs the company's ExxonMobil Perspectives blog.

Suzanne McCarron, general manager for public and government affairs and president of Exxon's philanthropic arm ExxonMobil Foundation, is expected to succeed him, the company said. Ms. McCarron joined Mobil Canada as public affairs manager in 1998.

Write to Maria Armental at maria.armental@wsj.com

Credit: By Maria Armental

Subject: Petroleum industry; Mandatory retirement

Location: United States--US

Company / organization: Name: ExxonMobil Foundation; NAICS: 813211

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Nov 13, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1732878254

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1732878254?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

We Seek the Facts on Exxon's Climate Studies

Author: Anonymous

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]14 Nov 2015: A.10.

ProQuest document link

Abstract:

In his "In Exxon War, Bamboozled by Greenies" (Business World, Nov. 7), Holman Jenkins, Jr. accuses me and the organization I lead, the Environmental Defense Fund, of turning our backs on our core philosophy of coalition-building because I endorsed a federal probe of Exxon Mobil.

Links: 360 Link to Full Text

Full text:  

In his "In Exxon War, Bamboozled by Greenies" (Business World, Nov. 7), Holman Jenkins, Jr. accuses me and the organization I lead, the Environmental Defense Fund, of turning our backs on our core philosophy of coalition-building because I endorsed a federal probe of Exxon Mobil. I did not call for a criminal investigation, as Mr. Jenkins claims, and the company's opposition to climate solutions isn't the issue here.

I called for a civil fact-finding probe because I am troubled by detailed news reports which strongly suggest that since the late 1970s Exxon Mobil's staff scientists have been privately briefing top executives on the realities of climate change, and that the executives have been making business decisions based on those realities, while spending tens of millions of dollars to actively mislead the public and investors. The public deserves to know the facts. I took the rare step of endorsing a civil probe because the stakes are extraordinarily high, and I don't see any other way to get those facts on the table.

The EDF's commitment to corporate partnerships, which has led to groundbreaking alliances with McDonald's, FedEx, Wal-Mart, AT&T and many others, gives us a responsibility to speak up when this kind of serious allegation surfaces. Mr. Jenkins accuses me of joining a rush to judgment and dismisses my public statement which made clear that is not the case. But I meant what I said. We don't have all the facts about what Exxon knew, and we are not prejudging what happened.

Fred Krupp

President

Environmental Defense Fund

Washington

(See related letter: "Letters to the Editor: Exxon's Research on Climate Is Transparent" -- WSJ November 24, 2015)

Subject: Chemical industry; Climate change; Environmental regulations

People: Krupp, Fred

Company / organization: Name: FedEx Corp; NAICS: 484110, 492110, 551114; Name: Wal-Mart Stores Inc; NAICS: 452112, 452910; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.10

Publication year: 2015

Publication date: Nov 14, 2015

Section: Letters to the Editor

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1732912322

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1732912322?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

A Misguided Campaign Against Exxon; Accusations about the company's handling of its climate-change research ignore the facts.

Author: Ford, Harold, Jr

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Nov 2015: n/a.

ProQuest document link

Abstract:

[...]Exxon donated its corporate papers to the University of Texas for public viewing.

Links: 360 Link to Full Text

Full text:  

Over the past few weeks a tempest has been swirling around one of America's most successful companies, with claims that the company found, ignored and then hid evidence that human activity causes climate change.

Conjectures about Exxon Mobil make good headlines, but the facts are more important, and here they are: Exxon has always been transparent about its climate-change research, and has shared that research with the scientific community from the beginning. In fact, Exxon donated its corporate papers to the University of Texas for public viewing. This is a model of transparency.

Further, Exxon has consistently stated the risks of climate change, and has long supported a carbon tax as the most effective and transparent way for government to reduce carbon emissions. For this, Exxon has been criticized by some who deny the effects of climate change.

The company also has helped lead the development of clean-energy technology. Its partnerships with the nation's premier research institutions, including Stanford and MIT, for researching energy efficiency and future technologies have been widely acclaimed. Exxon scientists helped develop the lithium ion battery, an important component of the electric car. The company is investing more than $500 million into research on next- generation biofuels from sources such as algae.

We must address climate change. But attacking companies that are creating jobs, growing the economy and providing valuable research isn't progress. Policy makers should recognize that private companies have played, and will continue to play, a vital role in developing the clean-energy technologies that help achieve greater energy efficiency and improve our lives.

During a 2012 speech in Oklahoma, President Obama said: "If we're going to end our dependence on foreign oil, if we're going to bring gas prices down once and for all, as opposed to just playing politics with it every single year, then what we're going to have to do is to develop every single source of energy that we've got, every new technology that can help us become more efficient."

When I listen to recent statements about Exxon from some of my Democratic friends, it's clear that the "all of the above" strategy that has served the country so well has vanished from the discussion about energy, climate change and economic growth. But we need everybody on board--including oil and gas companies--to provide the country with the energy it needs, and to develop the next generation of energy solutions.

America's oil and natural-gas industry supports more than nine million jobs in the U.S. and contributes nearly $600 billion to the economy. The energy industry flourished during the Great Recession thanks to technological advances that allowed energy development in shale rock formations throughout Pennsylvania, Ohio, Colorado and the Dakotas. As a result, consumers are enjoying lower energy costs.

Bill Clinton put it perhaps most powerfully in 2011 when he reminded us why America has made progress against climate change: "We've done as well as we have because of America's enormous capacity to generate energy from clean sources and to improve efficiency; the large number of entrepreneurs, innovators and financiers committed to a clean-energy future." We should follow President Clinton's example.

Mr. Ford was a Democratic congressman from Tennessee from 1997 to 2007.

Credit: By Harold Ford Jr.

Subject: Climate change; Algae; Clean technology; Recessions; Energy efficiency; Energy industry; Natural gas utilities

Location: United States--US

People: Obama, Barack

Company / organization: Name: Massachusetts Institute of Technology; NAICS: 611310; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: University of Texas; NAICS: 611310

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Nov 17, 2015

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1733688035

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1733688035?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon's Research on Climate Is Transparent; Beginning in the 1970s, company scientists began examining the question of anthropogenic contributions to climate change.

Author: Anonymous

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Nov 2015: n/a.

ProQuest document link

Abstract:

While we have worked to advance the scientific underpinnings, collaborating with the U.N.'s Intergovernmental Panel on Climate Change and with research institutions such as MIT, Princeton and Stanford, we have also worked to advance a responsible policy framework for addressing the risks of climate change.

Links: 360 Link to Full Text

Full text:  

Fred Krupp of the Environmental Defense Fund defends his call for government probes into Exxon Mobil's climate research based on inaccurate reporting in InsideClimate News and the Los Angeles Times, by saying there is no other way to get the facts (Letters , Nov. 14). Yet the facts are readily available.

Beginning in the 1970s, company scientists began examining the question of anthropogenic contributions to climate change. Our company's work to help understand the role that man-made CO2 emissions play in climate fluctuations has continued unabated for four decades.

There are many aspects to consider in assessing the wide range of predictions on how serious the impact of increasing amounts of anthropogenic emissions might be in the future. These include various policy proposals to drive investment to combat climate change and the economic and social effects of those efforts, not to mention the pace of technology development.

While we have worked to advance the scientific underpinnings, collaborating with the U.N.'s Intergovernmental Panel on Climate Change and with research institutions such as MIT, Princeton and Stanford, we have also worked to advance a responsible policy framework for addressing the risks of climate change. We believe the risks of climate change are serious and warrant thoughtful action.

At times our policy advocacy has put us at odds with some in the climate-activist community. For example, we opposed the Kyoto Protocol because it would have exempted two-thirds of the world's emissions while doing grave damage to the U.S. economy. The U.S. Senate felt similarly; in 1997 it voted 95-0 to oppose this ineffective and costly policy proposal.

Kenneth P. Cohen

Exxon Mobil Corporation

Irving, Texas

Subject: Climate change; Emissions; Global warming

People: Krupp, Fred

Company / organization: Name: Massachusetts Institute of Technology; NAICS: 611310; Name: Intergovernmental Panel on Climate Change; NAICS: 928120, 541712; Name: Senate; NAICS: 921120; Name: Los Angeles Times; NAICS: 511110; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: InsideClimate News; NAICS: 519130; Name: Environmental Defense Fund; NAICS: 813312, 541720

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Nov 23, 2015

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1735395815

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1735395815?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon's Research on Climate Is Transparent

Author: Anonymous

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]24 Nov 2015: A.12.

ProQuest document link

Abstract:

While we have worked to advance the scientific underpinnings, collaborating with the U.N.'s Intergovernmental Panel on Climate Change and with research institutions such as MIT, Princeton and Stanford, we have also worked to advance a responsible policy framework for addressing the risks of climate change.

Links: 360 Link to Full Text

Full text:  

Fred Krupp of the Environmental Defense Fund defends his call for government probes into Exxon Mobil's climate research based on inaccurate reporting in InsideClimate News and the Los Angeles Times, by saying there is no other way to get the facts (Letters, Nov. 14). Yet the facts are readily available.

Beginning in the 1970s, company scientists began examining the question of anthropogenic contributions to climate change. Our company's work to help understand the role that man-made CO2 emissions play in climate fluctuations has continued unabated for four decades.

There are many aspects to consider in assessing the wide range of predictions on how serious the impact of increasing amounts of anthropogenic emissions might be in the future. These include various policy proposals to drive investment to combat climate change and the economic and social effects of those efforts, not to mention the pace of technology development.

While we have worked to advance the scientific underpinnings, collaborating with the U.N.'s Intergovernmental Panel on Climate Change and with research institutions such as MIT, Princeton and Stanford, we have also worked to advance a responsible policy framework for addressing the risks of climate change. We believe the risks of climate change are serious and warrant thoughtful action.

At times our policy advocacy has put us at odds with some in the climate-activist community. For example, we opposed the Kyoto Protocol because it would have exempted two-thirds of the world's emissions while doing grave damage to the U.S. economy. The U.S. Senate felt similarly; in 1997 it voted 95-0 to oppose this ineffective and costly policy proposal.

Kenneth P. Cohen

Exxon Mobil Corporation

Irving, Texas

Subject: Climate change; Emissions; Global warming

People: Krupp, Fred

Company / organization: Name: Massachusetts Institute of Technology; NAICS: 611310; Name: Intergovernmental Panel on Climate Change; NAICS: 928120, 541712; Name: Senate; NAICS: 921120; Name: Los Angeles Times; NAICS: 511110; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: InsideClimate News; NAICS: 519130; Name: Environmental Defense Fund; NAICS: 813312, 541720

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.12

Publication year: 2015

Publication date: Nov 24, 2015

Section: Letters to the Editor

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1735561538

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1735561538?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

U.S. Stocks Fall as Oil Keeps Sliding; Exxon, Chevron log biggest declines in the Dow after OPEC opts not to cut production

Author: Strumpf, Dan; Gold, Riva

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Dec 2015: n/a.

ProQuest document link

Abstract:

The losses in European stock markets on Thursday and Friday "reflected a massive overreaction" to ECB policy, said Ben Kumar, investment manager at Seven Investment Management, noting the bank still cut rates and extended its stimulus program.

Links: 360 Link to Full Text

Full text:  

A selloff in energy shares dragged the broader stock market lower Monday, as oil prices tumbled.

The Dow Jones Industrial Average lost 117 points, or 0.7%, to 17731. The S&P 500 dropped 0.7%. The Nasdaq Composite declined 0.8%.

Energy companies posted the sharpest losses among major sectors, with energy stocks in the S&P 500 shedding 3.7%.

Crude-oil futures in New York fell 5.8% to $37.65 a barrel, extending last week's rout after a meeting of the Organization of Petroleum Exporting Countriesended with no agreement to cut production .

In the Dow, Exxon Mobil and Chevron posted the sharpest losses.

"Oil down in the $38 range is the bulk of what you see equity-market weakness from," said Michael Antonelli, equity sales trader at Robert W. Baird."You've seen a lot of people over the last three or four months looking for a low in energy, but it just remains elusive."

Stocks rose sharply Friday after a stronger-than-expected U.S. jobs report helped cement expectations that the Federal Reserve will start raising rates at its Dec. 15-16 meeting.

"Friday's rally seemed like just a response to the jobs number and not a long-term break-out," said Tom Carter, managing director at JonesTrading.

While ultralow interest rates have boosted equity markets in recent years, investors have been reassured by comments from Fed Chairwoman Janet Yellen suggesting monetary policy in the U.S. will tighten at a gradual pace.

"The Fed is still pretty dovish," said Sanjiv Shah, chief investment officer at Sun Global Investments. The jobs report left investors thinking that the U.S. economy was doing reasonably well, Mr. Shah said, but noted that Ms. Yellen has signaled policy will still normalize slowly.

The Dow industrials rose 2.1% to cap a tumultuous week, pushing the index back into positive territory for the year.

The yield on the 10-year Treasury note fell to 2.222% Monday as prices rose.

Shares of Chipotle Mexican Grill fell 1.7% after the restaurant chain said late Friday that its recent E. coli outbreak would cut deeply into sales and earnings from the current quarter.

Keurig Green Mountain shares soared 72% after the maker of coffee pods and machines agreed to be bought by an investor group led by JAB Holding for $13.9 billion, a sizeable premium.

The Stoxx Europe 600 Index edged up 0.5% after rising more than 1% earlier in the session. Stocks in Europe fell late last week after the European Central Bankannounced stimulus measures that left many investors disappointed.

ECB President Mario Draghi sought to reassure investors on Friday that the central bank would "no doubt" step up its stimulus program if needed. The comments came after European markets closed for the weekend.

The losses in European stock markets on Thursday and Friday "reflected a massive overreaction" to ECB policy, said Ben Kumar, investment manager at Seven Investment Management, noting the bank still cut rates and extended its stimulus program.

"I think everyone believes payrolls data Friday was the last thing that could change the Fed's mind," Mr. Kumar said. "We're all set for a rate rise."

The euro was down 0.3% against the dollar at $1.08472. It had surged after Thursday's ECB announcement.

Japan's Nikkei 225 Stock Average rose 1% Monday.

Concerns about Chinese data due later in the week and a fall in energy stocks kept a lid on gains elsewhere in Asia. Australia's S&P/ASX 200 rose 0.1% and the Shanghai Composite added 0.3%.

Gold declined 0.75% at $1,076.40 an ounce.

Write to Dan Strumpf at daniel.strumpf@wsj.com and Riva Gold at riva.gold@wsj.com

Credit: By Dan Strumpf And Riva Gold

Subject: Stock exchanges; Dow Jones averages; Interest rates; American dollar; Investments; Equity; Energy industry

Location: United States--US New York

Company / organization: Name: Keurig Green Mountain Inc; NAICS: 424490, 311920; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Chipotle Mexican Grill; NAICS: 722513

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Dec 7, 2015

column: U.S. Markets

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1744611629

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1744611629?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

U.S. Stocks Fall as Oil Keeps Sliding; Exxon, Chevron log biggest declines in the Dow after OPEC opts not to cut production

Author: Strumpf, Dan

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Dec 2015: n/a.

ProQuest document link

Abstract:

Crude-oil futures in New York fell $2.32, or 5.8%, to $37.65 a barrel as fears of a global supply glut deepened after a meeting of the Organization of the Petroleum Exporting Countries ended last week with no agreement to cut production .

Links: 360 Link to Full Text

Full text:  

A selloff in energy shares dragged the broader stock market lower Monday, as oil prices tumbled to an almost seven-year low.

The Dow Jones Industrial Average lost 117.12 points, or 0.7%, to 17730.51. The S&P 500 declined 14.62, or 0.7%, to 2077.07. The Nasdaq Composite declined 40.46, or 0.8%, to 5101.81.

Energy companies posted the sharpest losses among major sectors, with energy stocks in the S&P 500 shedding 3.7%. They have lost 11% over the past month amid renewed selling in the oil market.

"You've seen a lot of people over the last three or four months looking for a low in energy, but it just remains elusive," said Michael Antonelli, equity sales trader at Robert W. Baird.

Crude-oil futures in New York fell $2.32, or 5.8%, to $37.65 a barrel as fears of a global supply glut deepened after a meeting of the Organization of the Petroleum Exporting Countries ended last week with no agreement to cut production .

In the Dow, Chevron and Exxon Mobil posted the sharpest losses, shaving 30 points off the index. Chevron fell $2.43, or 2.7%, to $87.28. Exxon declined 2.06, or 2.6%, to 76.80.

Monday's slide marks the latest swing as expectations build for the first interest-rate increase in nearly a decade later this month. On Friday, stocks rose sharply after a stronger-than-expected U.S. jobs report firmed expectations that the Fed will start raising rates at its Dec. 15-16 meeting.

"Friday's rally seemed like just a response to the jobs number and not a long-term breakout," said Tom Carter, managing director at JonesTrading.

The swings have left the S&P 500 with a loss of 0.2% so far in December and a gain of 0.9% so far this year.

Ultralow interest rates have boosted equity markets in recent years. Many investors say they have been assured by comments from Fed Chairwoman Janet Yellen suggesting monetary policy in the U.S. will tighten at a gradual pace.

"The Fed is still pretty dovish," said Sanjiv Shah, chief investment officer at Sun Global Investments. The jobs report left investors thinking that the U.S. economy was doing reasonably well, Mr. Shah said, but he noted that Ms. Yellen has signaled that policy will still normalize slowly.

The yield on the 10-year Treasury note fell to 2.222%, from 2.275%, Friday as prices rose.

Shares of Chipotle Mexican Grill fell 9.45, or 1.7%, to 551.75 after the restaurant chain said late Friday that its recent E. coli outbreak would cut deeply into sales and earnings from the current quarter.

Staples declined 1.70, or 14%, to 10.66 after U.S. antitrust enforcers filed a lawsuit seeking to block the office-supply chain from buying rival Office Depot. The shares of Office Depot dropped 1.04, or 14%, to 5.59.

Keurig Green Mountain shares soared 37.19, or 72%, to 88.89--its largest one-day gain ever--after the maker of coffee pods and machines agreed to be bought by an investor group led by JAB Holding for $13.9 billion, a sizable premium.

The Stoxx Europe 600 Index closed up 0.5% after rising more than 1% earlier in the session. Stocks in Europe fell late last week after the European Central Bankannounced stimulus measures that left many investors disappointed.

The euro was down 0.4% against the dollar at $1.0838.

Japan's Nikkei Stock Average rose 1% Monday. A fall in energy stocks kept a lid on gains elsewhere in Asia. Australia's S&P/ASX 200 rose 0.1% and the Shanghai Composite added 0.3%.

Gold declined 0.7% to $1,076.40 an ounce.

Riva Gold contributed to this article.

Write to Dan Strumpf at daniel.strumpf@wsj.com

Credit: By Dan Strumpf

Subject: Stock exchanges; American dollar; Investments; Energy industry

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Chipotle Mexican Grill; NAICS: 722513; Name: Office Depot Inc; NAICS: 453210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Dec 8, 2015

column: U.S. Markets

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1744833837

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1744833837?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Mobil Promotes Darren Woods to President; Executive is company's senior vice president

Author: Armental, Maria

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Dec 2015: n/a.

ProQuest document link

Abstract:

Chief Executive Rex W. Tillerson--who like his predecessor Lee Raymond held the president title before being promoted to chief executive--will turn 65, Exxon's mandatory retirement age, in 2017.

Links: 360 Link to Full Text

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Exxon Mobil Corp. has promoted Darren W. Woods to president and named him a director, expanding its board to 13 members, the company said.

Mr. Woods, 50 years old, is to take on his new post on Jan. 1.

The Wichita, Kan., native joined the oil giant in 1992 as a planning analyst. He was promoted to his current post of senior vice president in 2014.

Exxon shares closed Friday at $74.34, down 20% for the year.

Write to Maria Armental at maria.armental@wsj.com

Credit: By Maria Armental

Subject: Executives; Mandatory retirement; Presidents

People: Tillerson, Rex W

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Dec 11, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1748044534

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1748044534?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon's Heir Apparent Emerges From Oil Giant's Ranks; Darren Woods, who becomes president Jan. 1, faces an array of challenges amid oil downturn

Author: Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2015: n/a.

ProQuest document link

Abstract:

New York Attorney General Eric Schneiderman launched a probe of Exxon's public stance on the matter with investors after several investigative reports called attention to its early history of research on global warming and its opposition to certain policy reforms.

Links: 360 Link to Full Text

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The next in line for Exxon Mobil Corp.'s top job has emerged from the oil giant's ranks.

Exxonon Friday named Darren Woods, 50, president of the company and gave him a seat on the board of directors. Mr. Woods, a 23-year Exxon employee, has most recently been at the helm of the company's extensive oil refining and chemical operations. He will take his new position Jan. 1.

The move to elevate Mr. Woods, an electrical engineer by training, mirrors previous CEO successions, including that of current chief Rex Tillerson and his predecessor Lee Raymond. The Irving, Texas-based energy behemoth has consistently promoted from within its ranks and favored smooth executive transitions, elevating future leaders to the role of president before they take over.

Mr. Tillerson, Exxon's chief executive since 2006, isn't required to retire until 2017 when he turns 65. But the promotion puts Mr. Woods in a position to run the company for more than a decade.

As heir apparent Mr. Woods is poised to have a front-row seat as Exxon deals with the loss of its stature as the world's largest publicly traded corporation. An array of challenges await him, including the worst commodities glut in a generation, an investigation into the company's record on climate change and the specter of continued uncertainty in some of the oil giant's most important strategic global outposts, such as Russia.

"There is no question in my mind that he will probably face more problems and more issues than his predecessors," said Fadel Gheit, an energy analyst at Oppenheimer & Co. "This downturn is going to be a lot more serious than many people think. And climate change will have to be taken very seriously as it will impact Exxon's business."

Alan Jeffers, a spokesman for Exxon, said Mr. Woods wasn't available for an interview. He declined to comment about whether Mr. Woods will succeed Mr. Tillerson.

Little is known about the winnowing process through which Mr. Woods was selected. Members of Exxon's senior ranks, who are groomed in leadership positions in business units all over the world, usually avoid the public spotlight. Mr. Tillerson became CEO in similar fashion, first joining the management committee along with another executive, then advancing to president and finally taking over for Mr. Raymond, who followed a similar process as well.

Unlike Mr. Tillerson, who earned his stripes by exploring for new oil and gas finds and had a long history doing business in Russia, Mr. Woods comes from the fuels and pipelines side of the business. Exxon's sprawling network of plants and pipes is global, refining oil into gasoline and diesel and manufacturing chemicals that can be turned into plastics and used in products from tires to toys.

A native of Kansas, Mr. Woods has degrees from Texas A&M University and Northwestern University. He joined Exxon in 1992 as a planning analyst before moving into various refining and chemicals positions. Earlier this year he was elected a member of the board of the U.S.-China Business Council.

Given his relatively low profile, many company observers see his potential responses to Exxon's biggest challenges as an unknown.

The company has recently been beset with questions about its record on climate change, dating back decades. New York Attorney General Eric Schneiderman launched a probe of Exxon's public stance on the matter with investors after several investigative reports called attention to its early history of research on global warming and its opposition to certain policy reforms. The company has denied any wrongdoing.

The 18-month long crash in oil and fuel prices has crimped Exxon's profits and shaved off nearly $50 billion in value of its shares in the market. Like other companies that pump oil and process it, Exxon has been bolstered by profits from its refinery business this year, a trend that may change as world-wide growth in demand for fuel shrinks.

Credit: By Bradley Olson

Subject: Climate change; Petroleum industry; Appointments & personnel changes; Chief executive officers

Location: Russia

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2015

Publication date: Dec 14, 2015

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1748418220

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1748418220?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Business News: Exxon's Heir Apparent Emerges From Ranks

Author: Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]14 Dec 2015: B.2.

ProQuest document link

Abstract:

An array of challenges await him, including the worst commodities glut in a generation, an investigation into the company's record on climate change and the specter of continued uncertainty in some of the oil giant's most important strategic global outposts, such as Russia.

Links: 360 Link to Full Text

Full text:  

The next in line for Exxon Mobil Corp.'s top job has emerged from the oil giant's ranks.

Exxon on Friday named Darren Woods, 50, president of the company and gave him a seat on the board of directors. Mr. Woods, a 23-year Exxon employee, has most recently been at the helm of the company's extensive oil refining and chemical operations. He will take his new position Jan. 1.

The move to elevate Mr. Woods, an electrical engineer by training, mirrors previous CEO successions, including that of current chief Rex Tillerson and his predecessor Lee Raymond. The Irving, Texas-based energy behemoth has consistently promoted from within its ranks and favored smooth executive transitions, elevating future leaders to the role of president before they take over.

Mr. Tillerson, Exxon's chief executive since 2006, isn't required to retire until 2017 when he turns 65. But the promotion puts Mr. Woods in a position to run the company for more than a decade.

As heir apparent Mr. Woods is poised to have a front-row seat as Exxon deals with the loss of its stature as the world's largest publicly traded corporation. An array of challenges await him, including the worst commodities glut in a generation, an investigation into the company's record on climate change and the specter of continued uncertainty in some of the oil giant's most important strategic global outposts, such as Russia.

"There is no question in my mind that he will probably face more problems and more issues than his predecessors," said Fadel Gheit, an energy analyst at Oppenheimer & Co. "This downturn is going to be a lot more serious than many people think. And climate change will have to be taken very seriously as it will impact Exxon's business."

Alan Jeffers, a spokesman for Exxon, said Mr. Woods wasn't available for an interview. He declined to comment about whether Mr. Woods will succeed Mr. Tillerson.

Little is known about the winnowing process through which Mr. Woods was selected. Members of Exxon's senior ranks usually avoid the public spotlight.

Unlike Mr. Tillerson, who earned his stripes by exploring for new oil and gas finds and had a long history doing business in Russia, Mr. Woods comes from the fuels and pipelines side of the business. Exxon's sprawling network of plants and pipes is global, refining oil into gasoline and diesel and manufacturing chemicals that can be turned into plastics and used in products from tires to toys.

A Kansas native, Mr. Woods has degrees from Texas A&M University and Northwestern University. He joined Exxon in 1992 as a planning analyst before moving into refining and chemicals positions. Earlier this year, he was elected a member of the board of the U.S.-China Business Council.

Credit: By Bradley Olson

Subject: Petroleum industry

Location: United States--US

People: Woods, Darren

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 8510: Petroleum industry; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.2

Publication year: 2015

Publication date: Dec 14, 2015

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1748541640

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1748541640?accountid=7117

Copyright: (c) 2015 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without per mission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Could Saudi Aramco Be Worth 20 Times Exxon? Potential sale of shares in oil giant raises question of just how valuable company would be

Author: Baxter, Kevin; Said, Summer

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Jan 2016: n/a.

ProQuest document link

Abstract:

Just using proved oil reserves as a benchmark for valuation, Saudi Aramco could be worth up to 20 times as much as Exxon Mobil Corp., the largest non-state-controlled publicly listed oil company with a market valuation of $317 billion.

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LONDON--Saudi Arabia's potential sale of shares in its state-owned oil giant raises the question of just how valuable that publicly listed company would be, with estimates of market valuations ranging into the trillions of dollars.

Saudi Arabian Oil Co., better known as Saudi Aramco, produces more than 10% of the world's oil supply every day and has built a large chain of refineries and petrochemical facilities to complement its exploration and production operations.

Just using proved oil reserves as a benchmark for valuation, Saudi Aramco could be worth up to 20 times as much as Exxon Mobil Corp., the largest non-state-controlled publicly listed oil company with a market valuation of $317 billion. Saudi Aramco has 261 billion barrels of proved crude-oil reserves, according to its 2014 annual report, compared with less than 14 billion barrels of proved liquid reserves reported at the same time by Exxon.

"Aramco's value is more than $10 trillion," said Mohammad al-Sabban, a former senior adviser to the Saudi oil ministry who is now an independent oil analyst.

But Mr. Sabban and other observers said it was unlikely the Saudi kingdom would list the entire company. That could open up scrutiny about financial controls and open a veil on information the royal family regards as state secrets.

Instead, Saudi Aramco is likely to put up a small percentage of the company or just list its refining and chemical operations, Mr. Sabban said. Aramco indicated similar sentiments in its own statement Friday, revealing it was considering "the listing in capital markets of an appropriate percentages of the company's shares and/or the listing of a bundle of its downstream subsidiaries."

To give some idea of the scale of Aramco's domestic downstream operations, consider the Sadara Chemical Co. complex in the eastern city of Jubail--the largest single-phase petrochemicals project ever built when it starts full operations in 2017. Built in partnership with Dow Chemical, it has already been earmarked for an IPO this year to raise the necessary funds to pay its $20 billion price-tag.

if the Sadara complex was floated in the U.S. on its own it would immediately become a Fortune 500 company, the company says. If added to all of Aramco's other domestic refinery and petrochemical facilities then the resultant company would be one of the largest of its type in the world.

The idea of a float was still under review and would have to be approved by the company's board of directors and its supreme council, which includes oil minister Ali al-Naimi and Mohammad bin Salman Al Saud, Saudi Arabia's powerful deputy crown prince who first revealed the plans in an interview with The Economist.

The initial idea of floating Saudi Aramco shares on the Saudi Arabian stock exchange, known as the Tadawul, may sound like a radical move by Riyadh, but if it decides to go with the second option of bundling up its downstream operations then there is a precedent.

Saudi Aramco has already held an initial public offering for one of its domestic downstream facilities. The Rabigh Refining and Petrochemical Company, known as PetroRabigh, offered 25% of its shares to investors in 2008. The complex, located north of Jeddah on the Red Sea coast, is co-owned by Saudi Aramco and Japan's Sumitomo Chemical, which each hold a 37.5% share.

PetroRabigh was completed in 2009 and since then, Saudi Aramco has accelerated its ramping up its domestic downstream operations with investments totaling tens of billions of dollars.

"An IPO even if it is very small will make Aramco more efficient and more cost effective through transparency," Mr. Sabban said. "Aramco will have to put out more disclosures, and for instance if their project delays or updates they will have to disclose that and that will put an end to the current mystery in Aramco."

Write to Kevin Baxter at Kevin.Baxter@wsj.com and Summer Said at summer.said@wsj.com

Corrections & Amplifications

Khalid al-Falih is the chairman of Saudi Aramco. A photo caption in an earlier version of this article incorrectly named him as chief executive. (Jan. 8, 2016)

Credit: By Kevin Baxter and Summer Said

Subject: Oil reserves; Petroleum industry; Chemical industry; Initial public offerings

Location: Saudi Arabia

People: Naimi, Ali I

Company / organization: Name: Sadara Chemical Co; NAICS: 325199; Name: Saudi Arabian Oil Co; NAICS: 211111; Name: Dow Chemical Co; NAICS: 325199, 325211, 325180; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jan 8, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1754515208

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1754515208?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Could Saudi Aramco Be Worth 20 Times Exxon? Potential sale of shares in oil giant raises question of just how valuable company would be

Author: Baxter, Kevin; Said, Summer

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Jan 2016: n/a.

ProQuest document link

Abstract:

The notion of a public share offering was still under review and would have to be approved by the company's board of directors and its supreme council, which includes oil minister Ali al-Naimi and Mohammad bin Salman Al Saud, Saudi Arabia's powerful deputy crown prince who first revealed the idea in an interview with the Economist.

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Full text:  

LONDON--Saudi Arabia's potential sale of shares in its state-owned oil giant could lead to a publicly listed company valued in the trillions of dollars, more than 10 times Apple Inc.'s peak of about $756 billion.

Saudi Arabian Oil Co., better known as Saudi Aramco, on Friday held out the prospect of an IPO on the Saudi stock exchange. Aramco said it was considering "the listing in capital markets of an appropriate percentage of the company's shares and/or the listing of a bundle of its downstream subsidiaries."

That potential drew attention because the company produces more than 10% of the world's oil supply every day and controls a large chain of refineries and petrochemical facilities to complement its exploration and production operations. Taken together the business could be valued at more than $10 trillion by some estimates. Exxon Mobil Corp., the largest non-state-controlled oil company, has a market value of $317 billion.

Mohammad al-Sabban, an independent oil analyst and former senior adviser to the Saudi oil ministry, said it was unlikely the Saudi kingdom would list shares in the parent. That could open it up to scrutiny about financial controls and lift a veil on information that the royal family regards as state secrets.

More likely is a Saudi Aramco listing of parts of its refining and chemical operations, Mr. Sabban and others said. That would still be significant given the size of those businesses.

A person familiar with the national oil company said Western banks likely are months away from hearing what the Saudis' decision will be. There hasn't been serious discussions with banks about the particulars of any stock offering, that person added.

One clue to the scale of Aramco's domestic refining operations is its Sadara Chemical Co. complex in the eastern city of Jubail. It will be the largest petrochemicals project ever built at one time when it starts full operations in 2017. Built in partnership with Dow Chemical Co., it has already been earmarked for an IPO this year to raise the funds to pay its $20 billion price-tag.

If the Sadara complex was floated in the U.S., it would immediately become a Fortune 500 company, the company has said. If added to all of Aramco's other domestic refinery and petrochemical facilities, the resulting company would be one of the largest of its type in the world.

The notion of a public share offering was still under review and would have to be approved by the company's board of directors and its supreme council, which includes oil minister Ali al-Naimi and Mohammad bin Salman Al Saud, Saudi Arabia's powerful deputy crown prince who first revealed the idea in an interview with the Economist. Prince Mohammad said a decision would be made within months.

Floating Saudi Aramco shares on the Saudi Arabian stock exchange, known as the Tadawul, may sound like a radical move by Riyadh, but if it chooses the second option--bundling its refining and processing operations--then there is a precedent.

Saudi Aramco has already held an initial public offering for one of its domestic downstream facilities. The Rabigh Refining and Petrochemical Company, known as PetroRabigh, offered 25% of its shares to investors in 2008. The complex, located north of Jeddah along the Red Sea, is co-owned by Saudi Aramco and Japan's Sumitomo Chemical Co., which each hold a 37.5% share.

Some analysts said it would be strange for Saudi Aramco to list its shares when the oil market is in the midst of a deep price collapse, dropping more than two-thirds over the past 18 months to the lowest levels in more than a decade.

But the sale would help bolster the kingdom's coffers as it copes with a slump in income from oil sales. Saudi Arabia ran a record deficit of nearly $98 billion last year, and late last month it announced expenditure and subsidy cuts for 2016 to keep its widening deficit in check.

The kingdom's foreign reserves are shrinking--down 15% to $635.5 billion at the end of November, from a peak of $746 billion in August last year--limiting the government's ability to continue its massive spending at home, where people are accustomed to state assistance.

Raising a large sum of money would allow the energy giant to weather low crude prices for a few more years, said Chad Mabry, a senior energy analyst at brokerage FBR & Co.

He also said that the longer the Saudi government refrains from production cuts, the longer global prices will remain low. A sizable and successful public offering could have an impact on U.S. oil competitors now struggling at current prices, he said.

Saudi Aramco has 261 billion barrels of proved crude-oil reserves, according to its 2014 annual report, compared with less than 14 billion barrels of proved liquid reserves, excluding natural gas, reported at the same time by Exxon.

Ahmed Al Omran, Ryan Dezember, Erin Ailworth and Selina Williams contributed to this article.

Write to Kevin Baxter at Kevin.Baxter@wsj.com and Summer Said at summer.said@wsj.com

Credit: By Kevin Baxter and Summer Said

Subject: Petroleum industry; Chemical industry; Initial public offerings

Location: Saudi Arabia

People: Mohamed bin Salman, Prince of Saudi Arabia Naimi, Ali I

Company / organization: Name: Sadara Chemical Co; NAICS: 325199; Name: Apple Inc; NAICS: 511210, 334111, 334220; Name: Saudi Arabian Oil Co; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Dow Chemical Co; NAICS: 325199, 325211, 325180

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jan 9, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1754644789

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1754644789?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Amid Weak Oil Prices, Pemex Touts Its Rock-Bottom Production Costs; Petróleos Mexicanos says its costs are less than Exxon Mobil, Chevron, BP and Brazil's Petrobras

Author: Iliff, Laurence

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Jan 2016: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:  

MEXICO CITY--With oil prices sinking to levels not seen in more than a decade, Mexican national oil company Petróleos Mexicanos said Tuesday that its production costs are among the lowest in the world, averaging under $10 per barrel among currently producing fields and less than $7 a barrel for its cheapest fields.

Furthermore, Pemex said its production costs are actually falling because of the recent devaluation of the peso, since oil is sold in dollars and service contracts and other costs are paid in pesos. "This cost level means that Pemex production activities continue to be profitable even with the recent fall in hydrocarbon prices," the company said in a statement.

U.S. oil prices were about $30 a barrel on Tuesday, while Pemex said that the average price for its basket of mostly heavy export oils was $21.50 a barrel.

Pemex said that its production costs were lower than counterparts like Exxon Mobil, Chevron, BP and Brazil's Petrobras, citing company reports filed with the U.S. Securities and Exchange Commission.

Pemex said that media reports putting its cost-per-barrel at $23 had included a series of future costs in that calculation, such as exploration, drilling, new infrastructure and production in new fields. Those costs are likely to be reduced in the current price climate, the company said, since service providers must lower their prices to Pemex to keep their contracts.

Mexico's two-year-old oil reform, opening up the sector to private and foreign companies for the first time in eight decades, also allows Pemex to open new lines of business across the value chain that will benefit the bottom line, the company said.

Pemex reported an after-tax loss of $9.5 billion in the third-quarter of last year and is shaving billions of dollars from its yearly budgets on orders from the federal government. The company's oil production has also fallen every year since 2004 with no recovery in sight, and it needs to borrow billions of dollar a year in order to pay its tax bill and make needed investments.

A key reason that legislators approved the controversial 2013 constitutional amendment allowing foreign participation in the oil sector was because of Pemex's inability to develop more complicated oil fields in deep waters offshore and in nonconventional resources. The government needs oil production to stay relatively high in order to meet its budget needs.

Write to Laurence Iliff at laurence.iliff@wsj.com

Credit: By Laurence Iliff

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jan 13, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1755941088

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1755941088?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Church of England and New York State Fund to Press Exxon on Climate Change; Potential carbon taxes could affect viability of long-term investment plans

Author: Samuel, Juliet

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 Jan 2016: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:  

New York's state pension fund and the Church of England, both investors in Exxon Mobil Corp., plan to file a shareholder resolution demanding the largest U.S. oil company assess the impact on its business of climate change policy.

The shareholder resolution would require Exxon to conduct an assessment of how its business would fare in the event governments take various actions to limit global warming. Government attempts to tax or put a price on carbon, for example, could affect the viability of some of Exxon's long-term investment plans, said Edward Mason, head of responsible investing for the Church of England, which has a portfolio of about £10 billion ($14.44 billion).

The resolution is evidence of a growing trend in Europe crossing the Atlantic. Large European investment companies have become increasingly vocal about climate change business risks in the last year. Governments agreed to limit carbon emissions following U.N. talks in Paris, and Mark Carney, governor of the Bank of England, warned investors must start taking carbon emissions policy risks into account.

"A lot of this is about capital allocation," Mr. Mason said. "To say [no policy changes are] going to happen is an absurdly risky bet."

"The company should look at the possibility of governments around the world imposing a 'carbon tax'," said Patrick Doherty, director of corporate governance at the New York pension fund. "It will help inform investors in helping us to determine where we should put our money."

A spokesman for Exxon said the company wouldn't comment on the shareholder resolution but that it would be considered by the board. The company already attaches a carbon price to its emissions as part of its financial modeling.

The New York State Common Retirement Fund is the third largest U.S. public pension plan and manages assets worth $184.5 billion. Exxon is its second biggest single investment.

Together, the Church, New York State and several other co-filers of the resolution own shares worth over $1 billion. The company is worth about $329 billion in total. Similar resolutions targeting BP PLC and Royal Dutch Shell, which were filed by the Church, were endorsed by their boards and passed last year.

Mr. Mason said he believes the Church has a duty to push company management to spend more time considering risks associated with climate change. The Church excludes investment in some sectors, such as gambling, thermal coal and pornography, but for oil producers it takes an activist approach instead.

"It's about stewardship of creation, the planet and life," he said.

Write to Juliet Samuel at juliet.samuel@wsj.com

Credit: By Juliet Samuel

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jan 15, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1757062042

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1757062042?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

China Slowdown Stokes Fears of Peak Oil Demand; Exxon cuts China energy demand forecast to 2025

Author: Olson, Bradley; Spegele, Brian

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 Jan 2016: n/a.

ProQuest document link

Abstract:

A highly anticipated new energy demand projection from Exxon Mobil Corp. released Monday revises down the company's expectations for China. [...]a slew of data is emerging that points to the toll a weakened economy has taken on Chinese energy demand, which is among the most important factors in determining the price of crude oil.

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Full text:  

A bedrock belief among oil forecasters has been that China's voracious appetite for fossil fuels would stoke global energy demand for decades to come. That assumption now appears increasingly shaky.

A highly anticipated new energy demand projection from Exxon Mobil Corp. released Monday revises down the company's expectations for China. And a slew of data is emerging that points to the toll a weakened economy has taken on Chinese energy demand, which is among the most important factors in determining the price of crude oil.

Exxon cut its forecast for annual energy demand growth in China by almost a tenth to 2.2% a year through 2025. Over a decade, the revision amounts to more than Brazil's current annual oil consumption. Exxon also predicts that China's thirst for energy will peak by 2030.

The company played down the change to its figures based on its previously held view that China's working population is reaching its apex, said Bill Colton, vice president of corporate strategic planning.

"Countries sometimes have to go through transitions," he said. "One thing about economics, it's never a straight line."

A study issued last week by consultancy ESAI Energy said that the pace of Chinese oil demand growth would slow down 60% between now and 2030 when compared with the previous 15-year period.

"If demand won't come from China, who will step in to fill China's shoes?" said Erica Downs, a senior analyst for the Eurasia Group who focuses on the country's energy sector.

Chinese energy consumption rose just 0.9% last year, according to government estimates, as gross domestic product increased 6.9%, the worst annual rate in a quarter century. The unexpected short-term drop casts a shadow over the prospect of an oil price rally this year. U.S. and global benchmark crude prices fell below $27 a barrel last week for the first time since 2003.

The oil glut in the market today was initially spurred by technology breakthroughs that unlocked more fuel reserves from the ground. But the oversupply is being prolonged and deepened by weaker-than-expected demand. That confluence of factors has made this oil downturn particularly difficult to resolve. If tepid Chinese energy consumption continues, it could raise profound questions about the future stability of oil and gas producers around the world, analysts say.

Future expectations of robust energy demand have always been about more than just China. India, Asian tiger countries and other emerging economies with vast populations eager to move into the middle class were supposed to follow China's lead economically and on the energy demand front. Once-prominent fears that the world would soon run out of oil have been upended by plentiful supplies unleashed in recent years. Now emerging concerns about peak demand are starting to percolate.

From 2000 to 2010, China's rapid industrialization created soaring demand for oil to power an economy tied to manufacturing and exports. Over that decade, China accounted for more than 40% of the growth in global demand for crude oil.

The seemingly insatiable need caught the market by surprise, helping push oil prices to a record $147 a barrel in 2008. But since 2010, China's energy demand growth has fallen far more precipitously than its increases in GDP. In 2012, for instance, China's GDP rose at nearly double the rate of energy consumption growth. In 2014, it was more than triple. And last year, China's GDP grew six times faster than energy demand growth, according to figures from China and the World Bank.

Some analysts believe the numbers reflect uncertainty around the accuracy of data coming out of China. Yet even accounting for the possibility that GDP data is inflated, the decoupling of economic and energy growth suggests that China's transformation simply may not require as much fossil fuels as many have predicted.

Just as energy companies underestimated Chinese demand in the first decade of this century, they may be overestimating it now, said Anthony Barone, senior vice president for deals and restructuring at Argo, a Chicago-based consulting firm.

"Their growth has slowed, and the belief that they are going to be the top country providing stable, long-term demand for energy is looking optimistic," he said.

BP PLC's 2015 energy outlook forecast 3.9% energy demand growth for China through 2020, more than four times higher than the actual increase seen in the country's consumption. Last year's forecast growth for China by the International Energy Agency was nearly double the actual demand figure.

Predictions of a tremendous wave of energy growth from China, India and other fast-growing countries are based on a very real trend. As those economies mature, hundreds of millions of people will enter the middle class and use more energy, driving cars or using air conditioning. That is why Exxon still believes that from 2014 to 2040, global energy demand will grow by 25%, according to the company's Energy Outlook, released Monday.

No doubt middle-class Chinese are using more gasoline and electricity to power their homes and cars, but so far it isn't enough to make up for stagnating industrial activity.

All forecasts that seek to predict the supply and demand of oil or other commodities decades into the future make use of history and emerging trends, as well as informed "guesswork," said Citigroup commodities analyst Eric Lee.

"China isn't going to keep sucking up oil voraciously," he said. "No matter what, China will have its own unique development moving forward."

Write to Brian Spegele at brian.spegele@wsj.com

Credit: By Bradley Olson and Brian Spegele

Subject: Petroleum industry; Energy consumption; Crude oil prices; Economic growth; Gross Domestic Product--GDP; Energy industry

Location: China

Company / organization: Name: Eurasia Group; NAICS: 523930; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jan 25, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1759419796

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1759419796?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

China Slowdown Stokes Fears of Peak Oil Demand; Exxon cuts China energy demand forecast to 2025

Author: Olson, Bradley; Spegele, Brian

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 Jan 2016: n/a.

ProQuest document link

Abstract:

A bedrock belief among oil forecasters has been that China's voracious appetite for fossil fuels would stoke global energy demand for decades to come. [...]a slew of data is emerging that points to the toll a weakened economy has taken on Chinese energy demand, which is among the most important factors in determining the price of crude oil. Royal Dutch Shell PLC, Chevron Corp. and others have pursued multibillion-dollar projects that hinge on natural gas, which emits less carbon than oil and is cheaper or more lucrative to use in power generation.

Links: 360 Link to Full Text

Full text:  

A bedrock belief among oil forecasters has been that China's voracious appetite for fossil fuels would stoke global energy demand for decades to come. That assumption now appears increasingly shaky.

A highly anticipated new energy-demand projection from Exxon Mobil Corp. released Monday cuts the company's expectations for China. And a slew of data is emerging that points to the toll a weakened economy has taken on Chinese energy demand, which is among the most important factors in determining the price of crude oil.

Exxon cut its forecast for annual energy-demand growth in China by almost a 10th to 2.2% a year through 2025. Over a decade, the revision amounts to more than Brazil's current annual oil consumption. Exxon also predicts that China's thirst for energy will peak by 2030.

The company played down the change to its figures based on its previously held view that China's working population is reaching its apex, said Bill Colton, vice president of corporate strategic planning.

"Countries sometimes have to go through transitions," he said. "One thing about economics, it's never a straight line."

Oil prices fell 7.4% to $29.80 a barrel after Chinese data released Monday showed that diesel fuel use fell in 2015 from a year earlier.

A study issued last week by consultancy ESAI Energy said China's oil-demand growth rate between now and 2030 would be less than half that of the previous 15-year period.

"If demand won't come from China, who will step in to fill China's shoes?" said Erica Downs, a senior analyst for the Eurasia Group who focuses on the country's energy sector.

Some energy companies have already taken concrete steps to pivot from oil because China's economic transformation and global efforts to reduce carbon emissions make its future less certain.

Royal Dutch Shell PLC, Chevron Corp. and others have pursued multibillion-dollar projects that hinge on natural gas, which emits less carbon than oil and is cheaper or more lucrative to use in power generation. Some analysts believe gas will eventually overtake oil as the world's most dominant source of fuel.

Shell is in the finishing stages of acquiring global gas powerhouse BG Group PLC for $50 billion, while Chevron and partners are spending more than $80 billion to build two massive plants in Australia that will liquefy natural gas so it can be shipped overseas to Asia and beyond.

But those steps may prove problematic if energy demand doesn't pick up in emerging economies.

Chinese energy consumption rose just 0.9% last year, according to government estimates, as gross domestic product increased 6.9%, the weakest annual rate in a quarter century. The unexpected short-term drop casts a shadow over the prospect of an oil-price rally this year. U.S. and global benchmark crude prices fell below $27 a barrel last week for the first time since 2003.

The current oil glut was initially spurred by technology breakthroughs that unlocked more fuel reserves from the ground. But the oversupply is being prolonged and deepened by weaker-than-expected demand.

That confluence of factors has made this oil downturn particularly difficult to resolve. If tepid Chinese energy consumption continues, it could raise profound questions about the stability of oil and gas producers around the world, analysts say.

Expectations of robust energy demand have always been about more than just China. India, Asian tiger countries and other emerging economies with vast populations eager to move into the middle class were supposed to follow China's lead economically and on the energy-demand front. Once-prominent fears that the world would soon run out of oil have been upended by plentiful supplies unleashed in recent years. Now emerging concerns about peak demand are starting to percolate.

From 2000 to 2010, China's rapid industrialization created soaring demand for oil to power an economy tied to manufacturing and exports. Over that decade, China accounted for more than 40% of the growth in global demand for crude oil.

The seemingly insatiable need caught the market by surprise, helping push oil prices to a record $147 a barrel in 2008. But since 2010, China's energy demand growth has slowed faster than its GDP. In 2012, for instance, China's GDP rose at nearly double the rate of energy-consumption growth. Last year, China's GDP grew six times faster than energy-demand growth, according to figures from China and the World Bank.

Some analysts believe the numbers reflect uncertainty around the accuracy of data coming out of China. Yet even accounting for the possibility that GDP data is inflated, the decoupling of economic and energy growth suggests that China's transformation simply may not require as much fossil fuels as many have predicted.

Just as energy companies underestimated Chinese demand in the first decade of this century, they may be overestimating it now, said Anthony Barone, senior vice president for deals and restructuring at Argo, a Chicago-based consulting firm.

"Their growth has slowed, and the belief that they are going to be the top country providing stable long-term demand for energy is looking optimistic," he said.

BP PLC's 2015 energy outlook forecast 3.9% energy demand growth for China through 2020, more than four times higher than last year's actual increase in the country's consumption.

The International Energy Agency's 2015 energy-growth forecast was nearly double the actual demand figure.

Predictions of a tremendous wave of energy growth from China, India and other fast-expanding countries are based on a very real trend. As those economies mature, hundreds of millions of people will enter the middle class and use more energy, driving cars or using air conditioning. That is why Exxon still believes that from 2014 to 2040, global energy demand will grow by 25%, according to the company's Energy Outlook, released Monday.

No doubt middle-class Chinese are using more gasoline and electricity to power their homes and cars, but so far it isn't enough to make up for stagnating industrial activity.

All forecasts that seek to predict the supply and demand of oil or other commodities decades into the future make use of history and emerging trends, as well as informed "guesswork," said Citigroup commodities analyst Eric Lee.

"China isn't going to keep sucking up oil voraciously," he said. "No matter what, China will have its own unique development."

Write to Bradley Olson at Bradley.Olson@wsj.com and Brian Spegele at brian.spegele@wsj.com

Credit: By Bradley Olson and Brian Spegele

Subject: Petroleum industry; Natural gas; Crude oil prices; Economic growth; Gross Domestic Product--GDP; Energy industry; Emerging markets

Location: China

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: BG Group PLC; NAICS: 486210, 211111, 221210; Name: Chevron Corp; NAICS: 324110, 211111; Name: Eurasia Group; NAICS: 523930; Name : Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jan 26, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1759601445

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1759601445?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Why Exxon Is the Get-Rich-Slow Oil Play; Value hunters picking through the oil-industry rubble may do better with Exxon Mobil

Author: Jakab, Spencer

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Jan 2016: n/a.

ProQuest document link

Abstract:

[...]investors shouldn't lose sight of the get-rich-slow nature of a company that seems to emerge from each industry washout a bit stronger. Since 1970, through four booms and four busts in petroleum prices, $100 invested in Exxon has turned into $33,000, including dividends, nearly four times the gain of the S&P 500.

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Investors buying beaten-down energy stocks have been repeatedly bitten by renewed, vicious plunges in oil . A safer and possibly more-rewarding approach is to put a tiger in their tank with Exxon Mobil.

Value seekers might balk at how little Exxon actually has been affected by the industry rout. While dozens of energy-related companies fetch under half or even a 10th of their peak 2014 values, often due to fears of financial distress, the integrated giant is off by less than a third. On Thursday, when a quickly discredited Russian news report of an emergency meeting of oil producers briefly sent crude surging, Exxon shares rallied by a little over 3%. An index of pure-play exploration and production companies jumped 7%.

So buying Exxon shares, even if an investor timed the bottom in oil prices perfectly, hardly would be a get-rich-quick move. But investors shouldn't lose sight of the get-rich-slow nature of a company that seems to emerge from each industry washout a bit stronger.

Since 1970, through four booms and four busts in petroleum prices, $100 invested in Exxon has turned into $33,000, including dividends, nearly four times the gain of the S&P 500.

Part of that success has been due to Exxon's penchant for shoveling cash to shareholders rather than investing aggressively during booms. So far this century, it has paid out over $380 billion through buybacks and dividends, enough to buy rivals BP, Chevron and Total combined at today's values and have $30 billion left over.

Those capital returns left less for investing in its business. True, in 2014 Exxon marked the 21st consecutive year in which it added more hydrocarbon reserves than it produced, averaging a replacement ratio of 123%. Much of that growth has come through the checkbook, though, not the drill bit. It has mostly done so when oil prices were near a trough such as its merger with Mobil announced in 1999 and the acquisition of XTO Energy in 2009.

With the industry in a rut again, it is only natural to speculate that Exxon will once again pull the trigger. Another reason is that its reserve base isn't as attractive as it seems.

Of 25 billion barrels of oil equivalent at the end of 2014, less than nine billion is in liquids and nearly five billion is in high-cost bitumen and synthetic crude . And, highlighting that Exxon isn't quite so prescient, the XTO deal added plenty of natural gas at a time when the fuel was cheap and continued to get cheaper.

Raising the odds of a cash deal is that Exxon's preference for buybacks in recent years over dividends gives it some financial flexibility. At its recent pace, it has been paying out just $2 billion annually to repurchase its own shares, down from nearly $13 billion in 2013.

While its cash flows are much lower, too, Exxon has the ability to write larger checks than anyone in the industry. The main constraints are retaining its status as one of three U.S. companies with a triple-A credit rating and as a dividend aristocrat, a group that has managed to boost payouts annually for at least a quarter century.

But those constraints also are attractions that have helped Exxon's share price hold up better than any other large, integrated oil company globally. And that has preserved the value of its stock as an acquisition currency.

Targets discussed by analysts include EOG Resources, Anadarko Petroleum and Whiting Petroleum, down between 45% and 90% from peaks hit in 2014.

This tiger may be preparing to pounce again. Investors can, too.

Write to Spencer Jakab at spencer.jakab@wsj.com

Credit: By Spencer Jakab

Subject: Petroleum industry; Prices; Investments

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jan 28, 2016

column: Heard on the Street

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1760965585

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1760965585?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wa ll Street Journal

Exxon Mobil Profit Tumbles 58%; Bottom line comes in at lowest level since 2002

Author: Olson, Bradley; Dulaney, Chelsey

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Feb 2016: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp., the world's largest publicly traded oil company, said fourth-quarter profit tumbled 58%, to the lowest level since 2002, as the worst oil crash in decades hampered drilling operations.

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Exxon Mobil Corp., the world's largest publicly traded oil company, said fourth-quarter profit tumbled 58%, to the lowest level since 2002, as the worst oil crash in decades hampered drilling operations.

The Irving, Texas company disclosed plans to put its share buyback plan on hold to preserve cash, an unexpected step after the company spent $3 billion in 2015 to reduce its share count.

Rex Tillerson, chief executive, said the company would slash spending by 25% this year. That is much more than some analysts expected, said Guy Baber, an analyst at Simmons & Company International.

Exxon joins BP PLC and Chevron Corp. in reporting losses or sharply lower profits for the fourth-quarter and full-year of 2015. BP Tuesday announced a $5.2 billion loss for last year, an amount comparable to 2010 when it lost billions after the Deepwater Horizon oil spill in the Gulf of Mexico. The London-based oil giant plans to cut 7,000 jobs by 2017. Chevron Corp. of San Ramon, Calif. said last week it would cut spending by $9 billion and lay off 4,000 workers this year after reporting a surprise fourth-quarter loss of more than half a billion dollars.

Investors took the diminished profits or losses as a sign that the oil rout has battered even the biggest oil companies, which have business models that were more insulated against price crashes in the past. Exxon shares fell 2.8% to $74.13 by midday, a decline that was less steep than the drop in crude prices. The U.S. benchmark price of oil fell 4.4% to $30.24, though earlier in the day crude traded below $30. BP's American depositary receipts fell 7.6% to $29.29.

"No doubt profitability is compressed in this environment," Jeff Woodbury, Exxon's vice president, told investors on a call to discuss results. "We remain very focused on the fundamentals."

Exxon plans to continue investing even as prices fall, and the company has avoided mass layoffs in favor of constantly evaluating the productivity of its workers, as it has done since the 1999 merger with Mobil Corp., he said.

The global oil market is oversupplied by 1.5 million barrels a day, an amount that the company expects will diminish in the latter part of this year as seasonal demand increases, Mr. Woodbury said.

Still, significant amounts of oil in storage would have be put to use "before you see real growth in prices," he said.

Like many peers that tap shale fields from Texas to North Dakota, Exxon's U.S. production unit lost $538 million in the period, compared with a profit of $1.5 billion in the last three months of 2014. Around the world, profits from exploring for and producing oil and gas plunged to $857 million, down from $5.47 billion in the prior-year period.

One bright spot: Exxon's divisions that create chemicals and turn oil into fuels such as gasoline improved. Profits from refineries and chemical plants more than doubled to $1.35 billion.

The company also pumped more oil and gas in the fourth quarter than in the corresponding period of 2014. Output rose 4.8% from 2014 to the equivalent of 4.25 million barrels of oil and natural gas a day.

Exxon beat analyst expectations, booking a per-share profit that was better than the 63 cents a share in earnings Wall Street had expected. The company earned $2.78 billion, or 67 cents a share, down from $6.57 billion, or $1.56 a share, a year earlier.

This year the oil giant has earmarked $23.2 billion for capital spending, a 40% reduction since 2014 when oil was trading over $100 a barrel.

In the current quarter, Exxon will buy back shares to offset dilution of its stock, but the company doesn't plan to make any repurchases to reduce shares outstanding. In the fourth quarter, the company bought back $500 million in stock for that purpose.

Exxon last year began scaling back its quarterly buybacks, which used to total about $3 billion every 90 days. Stock repurchases are popular with investors because they shrink the number of shares available and tend to make them more valuable.

Write to Bradley Olson at Bradley.Olson@wsj.com and Chelsey Dulaney at Chelsey.Dulaney@wsj.com

Credit: By Bradley Olson and Chelsey Dulaney

Subject: Petroleum industry; Financial performance; Corporate profits; Prices; Capital expenditures; Profitability; Natural gas

Location: United States--US Texas

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Feb 2, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1761661489

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1761661489?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Rep roduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Gets OK to Truck Crude Oil on California Highway; Exxon Mobil allowed to truck hundreds of thousands of barrels of crude oil on a scenic California highway.

Author: Molinski, Dan

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Feb 2016: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. (XOM) has been given permission to truck hundreds of thousands of barrels of crude oil on a scenic California highway after the oil was left stranded in storage tanks following a pipeline rupture last year.

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Exxon Mobil Corp. (XOM) has been given permission to truck hundreds of thousands of barrels of crude oil on a scenic California highway after the oil was left stranded in storage tanks following a pipeline rupture last year.

"The approval is limited to trucking the total of approximately 425,000 barrels of oil currently in two storage tanks at the Exxon Mobil facility at Las Flores Canyon," Santa Barbara County said in a press release late Monday.

It said was only allowing Exxon to use crude tanker trucks on Highway 101, a move environmentalists had long opposed, "to mitigate the risks associated with long term storage of oil since the pipeline is expected to be inoperable for a prolonged period of time, in excess of at least six months."

Exxon, in an emailed statement Tuesday, expressed appreciation to Santa Barbara county, and said it "will continue to work closely with local officials as we prepare to safely remove inventory from our storage tanks."

In May 2015, a Plains All American Pipeline used by Exxon to haul some 30,000 barrels a day of crude suddenly burst due to corrosion, spilling a large amount of crude oil into the ocean and on beaches, killing wildlife.

That left Exxon with no way to get its crude oil to refineries and facing the prospect of halting production at its offshore California fields.

At that time, it asked the county for permission to use trucks to move its crude oil while the pipeline was being fixed. It said up to eight loaded oil-tanker trucks would use the 101 highway each hour, 24 hours a day, seven days a week. The county rejected that plan in June amid cheers from environmentalists, saying it didn't fit the county's "comprehensive plan."

Santa Barbara said in the press release that Exxon will begin moving the crude in about three weeks, and it will take up to six months to empty the tanks, at no more than 30 truck trips a day. Exxon won't be allowed to refill the tanks.

Write to Dan Molinski at Dan.Molinski@wsj.com

Credit: By Dan Molinski

Subject: Crude oil; Petroleum industry; Pipelines; Trucks; Environmentalists

Location: California Santa Barbara County California

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Plains All American Pipeline LP; NAICS: 486110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Feb 2, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1761774668

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1761774668?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Mobil: When Bad Oil News Isn't So Bad; Results weren't good enough to pierce renewed gloom about oil

Author: Jakab, Spencer

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Feb 2016: n/a.

ProQuest document link

Abstract:

Chevron is reeling from its worst quarterly loss in 13 years, BP from its worst annual loss ever, and Shell from a credit-rating downgrade. xxon, one of three triple-A-rated U.S. companies in any industry (though it was placed on credit watch with negative implications Tuesday by Standard & Poor's) doesn't just have staying power.

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It wasn't much of a surprise party for Exxon Mobil shareholders--a reminder that not everything is relative.

Following downbeat results from fellow supermajors BP and Chevron, the granddaddy of them all reported profits on Tuesday that beat analyst expectations for the fourth quarter and full year. Its stock promptly fell by more than 3% as the 10%-plus drop in oil prices so far this week trumped any sense of relief.

Shareholders suffered the further ignominy of learning that Exxon, once the most valuable company on the planet, was overtaken by Facebook for fourth place overall on Monday.

The fact that Exxon, even in an awful 2015, earned more than twice as much as the social media company has in its entire history is small solace. It is the direction of those profits--down 58% in the fourth quarter from a year earlier--that has set the tone.

The first quarter should be even bleaker. Exxon indicated it is further battening down the hatches, eliminating already reduced net share buybacks. It paid out nearly $13 billion that way in 2013.

Management minces no words about what it can and can't control and commodity prices clearly fall into the latter category. In the fourth quarter alone, it earned a whopping $4.6 billion less than a year earlier in its upstream business and similar plunges lie ahead. At these prices, even eliminating buybacks won't allow it to meet its cash needs without borrowing or touching its sacrosanct dividend.

But no oil company can thrive, and some can't survive, at $30-a-barrel crude. What is striking about Exxon is how well it can cope.

That relative distinction may make an absolute difference for its shareholders when the environment improves for oil companies. Chevron is reeling from its worst quarterly loss in 13 years, BP from its worst annual loss ever, and Shell from a credit-rating downgrade.

xxon, one of three triple-A-rated U.S. companies in any industry (though it was placed on credit watch with negative implications Tuesday by Standard & Poor's) doesn't just have staying power. It also has buying power in what may turn into the sale of the century for hydrocarbon reserves.

The party hasn't even started.

Write to Spencer Jakab at spencer.jakab@wsj.com

Credit: By Spencer Jakab

Subject: Corporate profits; Social networks; Financial performance; Petroleum industry

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Standard & Poors Corp; NAICS: 541519, 511120, 523999, 561450

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Feb 2, 2016

column: Heard on the Street

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1761786862

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1761786862?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Oil Slump Pressures Exxon, BP Results; BP's $5.2 billion loss on par with 2010; Exxon puts share-buyback plan on hold

Author: Kent, Sarah; Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Feb 2016: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. posted its weakest annual results in more than a decade and BP PLC suffered a loss as big as that booked in the aftermath of the worst offshore oil spill in its history, showing the extent of the damage that the 20-month crude-price slump can inflict on even the biggest and most secure oil companies.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. posted its weakest annual results in more than a decade and BP PLC suffered a loss as big as that booked in the aftermath of the worst offshore oil spill in its history, showing the extent of the damage that the 20-month crude-price slump can inflict on even the biggest and most secure oil companies.

BP posted a loss of $5.2 billion for 2015 --on par with 2010, when one of its Gulf of Mexico oil rigs exploded, killing 11 workers and spilling 3.2 million barrels of oil. And Exxon's annual earnings were cut in half to $16.2 billion , forcing the Irving, Texas, company to put its share-buyback plan on hold to preserve cash.

As oil prices have fallen 70% since June 2014, the effect on the most resilient energy firms has touched a nerve with investors, contributing to anxiety over the ties between the global economy and the oil market. The Dow Jones Industrial Average fell 1.8% Tuesday, dragged down by energy firms like Exxon.

"2016 is going to be tough," said BP Chief Executive Bob Dudley at a news conference in London.

BP, Exxon and their rivals have been smacked by oil prices that fell below $30 a barrel on Tuesday. Chevron Corp. said it would cut spending by $9 billion and lay off 4,000 workers this year after reporting a surprise fourth-quarter loss of more than half a billion dollars. Anglo-Dutch energy giant Royal Dutch Shell PLC indicated last month that its adjusted earnings fell 50% in 2015.

Those four oil giants are on track to report their lowest annual profits since 1998, according to S&P Capital IQ, when there was a similar oil-price downturn. It was a year or two before many of the firms nearly doubled in size through acquisitions of rivals, including the tie ups of Exxon and Mobil and BP and Amoco.

The oil slump has brought pressure to bear on oil companies' relatively high credit ratings. Standard & Poor's downgraded Chevron and Shell and said it would review the latter company's status again once its roughly $50 billion acquisition of smaller rival BG Group PLC is completed. The ratings agency also placed Exxon and others on credit watch. Exxon is one of only a handful of corporations in the world that holds a triple-A rating.

A downgrade is unlikely to affect the companies' ability to operate, but it does shine a spotlight on their spending.

Exxon Chief Executive Rex Tillerson said in a news release that the company would slash spending by 25% this year. That is more than some analysts expected, said Guy Baber, an analyst at Simmons & Company International.

Exxon's decision to pause its buyback program is a major departure from its long-standing practice given that the company has long seen reducing share count as a way to return cash to shareholders.

Excluding years when Exxon did major deals such as for Mobil in 1998 and XTO in 2010, the company has bought back more than 3 billion shares in the last 25 years, according to data compiled by S&P Capital IQ.

Exxon said it plans to continue investing even as prices fall, and the company has avoided mass layoffs in favor of constantly evaluating the productivity of its workers, said Jeff Woodbury, Exxon's vice president and corporate secretary, in a call today with investors.

The long-term damage lower spending could have on the big oil companies' businesses was evident in BP's failure to replace all the oil it pumped this year with new reserves. The company's reserve replacement ratio--an important measure that illustrates the extent an oil company is replenishing the barrels of crude produces every year--was just 61%.

Exxon has yet to disclose any details about its reserve replacement, typically reserving that for later in the year. Chevron, however, was able to replace the oil and gas it pumped at a ratio of 107%.

The prolonged downturn follows a period of frenzied spending from 2004 to 2014, when oil prices were generally on the rise and often broke over $100 a barrel. French energy titan Total SA, for example, has said the oil price at which the company broke even was $110 a barrel in 2014.

Last month, Brent crude prices fell to $27 a barrel.

"This is a cyclical industry, and some of these companies lost sight of that when they built multibillion-dollar projects all over the world," said Amy Myers Jaffe, executive director for energy and sustainability at the University of California, Davis. "No one was prepared for how low this trough could be and how much it would hurt them if prices went down."

Energy conglomerates such as BP and Exxon have long sold themselves to investors as a safe haven during price crashes. They are buffered by hefty balance sheets and refining operations that turn oil into products like gasoline and see higher demand when prices fall. But BP's refining, chemical and retail arm, known as downstream, was significantly weaker in the fourth quarter than earlier in the year, hurt by a poor performance in its trading business.

BP said Tuesday it would reduce the head count in its refining and marketing arm by 3,000 by the end of 2017, bringing the total number of job reductions announced this year to 7,000.

BP also is struggling to emerge from the shadow of the Gulf of Mexico spill, which it said Tuesday has cost the company $55.5 billion before tax over five years. The company is finalizing a settlement with U.S. governments for $20.8 billion.

The pressure is expected to remain on the oil sector as the glut in supply that has caused the downturn in prices shows no sign of letting up. Analysts and banks have cut their price outlooks for 2016 to an average of $50 a barrel, down from $57 a barrel.

BP's Mr. Dudley, who was among the most vocal last year saying oil prices would remain "lower for longer," said Tuesday that prices won't remain "lower forever."

Write to Sarah Kent at sarah.kent@wsj.com and Bradley Olson at Bradley.Olson@wsj.com

Credit: By Sarah Kent And Bradley Olson

Subject: Petroleum industry; Oil reserves; Prices; Losses

Location: Gulf of Mexico

People: Tillerson, Rex W Dudley, Bob

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Standard & Poors Corp; NAICS: 541519, 511120, 523999, 561450; Name: BG Group PLC; NAICS: 486210, 211111, 221210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Feb 3, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1761853511

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1761853511?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Crude Slump Pressures Exxon, BP

Author: Kent, Sarah; Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]03 Feb 2016: B.1.

ProQuest document link

Abstract:

Exxon Mobil Corp. posted its weakest annual results in more than a decade and BP PLC suffered a loss as big as that booked in the aftermath of the worst offshore oil spill in its history, showing the extent of the damage that the 20-month crude-price slump can inflict on even the biggest and most secure oil companies.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. posted its weakest annual results in more than a decade and BP PLC suffered a loss as big as that booked in the aftermath of the worst offshore oil spill in its history, showing the extent of the damage that the 20-month crude-price slump can inflict on even the biggest and most secure oil companies.

BP posted a loss of $5.2 billion for 2015 -- on par with 2010, when one of its Gulf of Mexico oil rigs exploded, killing 11 workers and spilling 3.2 million barrels of oil. And Exxon's annual earnings were cut in half to $16.2 billion, forcing the Irving, Texas, company to put its share buyback plan on hold to preserve cash.

As oil prices have fallen 70% since June 2014, the effect on the most resilient energy firms has touched a nerve with investors, contributing to anxiety over the ties between the global economy and the oil market. The Dow Jones Industrial Average fell 1.8% Tuesday, dragged down by energy firms like Exxon.

"2016 is going to be tough," said BP Chief Executive Bob Dudley at a news conference in London.

BP, Exxon and their rivals have been smacked by oil prices that fell below $30 a barrel on Tuesday. Chevron Corp. said it would cut spending by $9 billion and lay off 4,000 workers this year after reporting a surprise fourth-quarter loss of more than half a billion dollars. Anglo-Dutch energy giant Royal Dutch Shell PLC indicated last month that its adjusted earnings fell 50% in 2015.

Those four oil giants are on track to report their lowest annual profits since 1998, according to S&P Capital IQ, when there was a similar oil-price downturn. It was a year or two before many of the firms nearly doubled in size through acquisitions of rivals, including the tie ups of Exxon and Mobil and BP and Amoco.

The oil slump has brought pressure to bear on oil companies' relatively high credit ratings. Standard & Poor's downgraded Chevron and Shell and said it would review the latter company's status again once its roughly $50 billion acquisition of smaller rival BG Group PLC is completed. The ratings agency also placed Exxon and others on credit watch. Exxon is one of only a handful of corporations in the world that holds a triple-A rating.

A downgrade is unlikely to affect the companies' ability to operate, but it does shine a spotlight on their spending.

Exxon Chief Executive Rex Tillerson said in a news release that the company would slash spending by 25% this year. That is more than some analysts expected, said Guy Baber, an analyst at Simmons & Company International.

Exxon's decision to pause its buyback program is a major departure from its long-standing practice given that the company has long seen reducing share count as a way to return cash to shareholders.

Excluding years when Exxon did major deals such as for Mobil in 1998 and XTO in 2010, the company has bought back more than 3 billion shares in the last 25 years, according to data compiled by S&P Capital IQ.

Exxon said it plans to continue investing even as prices fall, and the company has avoided mass layoffs in favor of constantly evaluating the productivity of its workers, said Jeff Woodbury, Exxon's vice president and corporate secretary, in a call today with investors.

The long-term damage lower spending could have on the big oil companies' businesses was evident in BP's failure to replace all the oil it pumped this year with new reserves. The company's reserve replacement ratio -- an important measure that illustrates the extent an oil company is replenishing the barrels of crude produces every year -- was just 61%.

Exxon has yet to disclose any details about its reserve replacement, typically reserving that for later in the year. Chevron, however, was able to replace the oil and gas it pumped at a ratio of 107%.

The prolonged downturn follows a period of frenzied spending from 2004 to 2014, when oil prices were generally on the rise and often broke over $100 a barrel. French energy titan Total SA, for example, has said the oil price at which the company broke even was $110 a barrel in 2014.

Last month, Brent crude prices fell to $27 a barrel.

"This is a cyclical industry, and some of these companies lost sight of that when they built multibillion-dollar projects all over the world," said Amy Myers Jaffe, executive director for energy and sustainability at the University of California, Davis. "No one was prepared for how low this trough could be and how much it would hurt them if prices went down."

Energy conglomerates such as BP and Exxon have long sold themselves to investors as a safe haven during price crashes. They are buffered by hefty balance sheets and refining operations that turn oil into products like gasoline and see higher demand when prices fall. But BP's refining, chemical and retail arm, known as downstream, was significantly weaker in the fourth quarter.

BP said Tuesday it would reduce the head count in its refining and marketing arm by 3,000 by the end of 2017, bringing the total number of job reductions announced this year to 7,000.

BP also is struggling to emerge from the shadow of the Gulf of Mexico spill, which it said Tuesday has cost the company $55.5 billion before tax over five years. The company is finalizing a settlement with U.S. governments for $20.8 billion.

The pressure is expected to remain on the oil sector as the glut in supply that has caused the downturn in prices shows no sign of letting up. Analysts and banks have cut their price outlooks for 2016 to an average of $50 a barrel, down from $57 a barrel.

BP's Mr. Dudley, who was among the most vocal last year saying oil prices would remain "lower for longer," said Tuesday that prices won't remain "lower forever."

Credit: By Sarah Kent and Bradley Olson

Subject: Petroleum industry; Oil reserves; Prices; Losses; Securities buybacks; Financial performance

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Standard & Poors Corp; NAICS: 541519, 511120, 523999, 561450; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: BP PLC; NAICS: 211111, 324110, 447110

Classification: 9180: International; 8510: Petroleum industry; 3400: Investment analysis & personal finance

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2016

Publication date: Feb 3, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1761996196

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1761996196?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Fails to Replace Oil, Gas Production for First Time in 22 Years; Development speaks to depth and power of price crash that has intensified this year

Author: Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Feb 2016: n/a.

ProQuest document link

Abstract:

Exxon leaders such as former Chief Executive Lee Raymond have described replacing the company's own oil and gas production as one of their most significant day-to-day concerns. Because Exxon is about double the size or more of any of its Western peers such as Shell or Chevron Corp., it has always had to find far more oil and gas every year.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. disclosed Friday that for the first time since 1994, it failed to find enough new oil and gas to replace what it produced last year.

The company said it replaced only two-thirds of its 2015 oil and gas output, joining energy conglomerates such as Royal Dutch Shell PLC and BP PLC in failing to replace 100% of its reserves.

The development speaks to the depth and power of a price crash that has intensified this year as crude continues to sell for around $30 a barrel.

Related Coverage

* Oil Slump Pressures Exxon -- Energy Journal (Feb. 3)

* S&P Cuts Ratings of 10 U.S. Oil Companies (Feb. 2)

* Exxon Mobil: When Bad Oil News Isn't So Bad (Feb. 2)

Finding new oil and gas is a major indicator of the future prospects of energy conglomerates like Exxon. Reserve barrels have long acted as a signal to investors about the stability of the business model. When prices fall, some wells can no longer turn a profit, and companies must recognize the loss of value on their balance sheets.

Much of the decline for Exxon came from U.S. natural gas wells , which the company said it expects will eventually be developed and produced. Exxon's proved reserves totaled 24.8 billion barrels of oil and natural gas at the end of 2015, enough to last 16 years at the rate of its current output. In the past 10 years, Exxon has replaced an average of 115% of the oil and gas it has tapped every year.

Exxon leaders such as former Chief Executive Lee Raymond have described replacing the company's own oil and gas production as one of their most significant day-to-day concerns. Because Exxon is about double the size or more of any of its Western peers such as Shell or Chevron Corp., it has always had to find far more oil and gas every year.

"This is one of the drawbacks for Exxon, it's just too big," said Fadel Gheit, an energy analyst with Oppenheimer & Co. "It's very difficult for the company to grow, especially at these price levels."

It was the first time in 22 years that Exxon hasn't been able to find enough oil and gas to replace its annual output. BP replaced only 61% of production. Shell's reserves declined by more than the company's 2015 output, a rare negative replacement ratio.

Chevron and French oil giant Total SA said they found more oil and gas than they drilled for last year, each replacing 107% of reserves.

Write to Bradley Olson at Bradley.Olson@wsj.com

Credit: By Bradley Olson

Subject: Petroleum industry; Natural gas reserves; Oil reserves; Natural gas

Company / organization: Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Total SA; NAICS: 447190, 324110, 211111; Name: Chevron Corp; NAICS: 324110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Feb 20, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1766588877

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1766588877?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Fails to Replace Oil, Gas Production for First Time in 22 Years; Development speaks to depth and power of price crash that has intensified this year

Author: Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Feb 2016: n/a.

ProQuest document link

Abstract:

Exxon leaders such as former Chief Executive Lee Raymond have described replacing the company's own oil and gas production as one of their most significant day-to-day concerns. Because Exxon is about double the size or more of any of its Western peers such as Shell or Chevron Corp., it has always had to find far more oil and gas every year.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. disclosed Friday that for the first time since 1994, it failed to find enough new oil and gas to replace what it produced last year.

The company said it replaced only two-thirds of its 2015 oil and gas output, joining energy conglomerates such as Royal Dutch Shell PLC and BP PLC in failing to replace 100% of its reserves.

The development speaks to the depth and power of a price crash that has intensified this year as crude continues to sell for around $30 a barrel.

Finding new oil and gas is a major indicator of the future prospects of energy conglomerates like Exxon. Reserve barrels have long acted as a signal to investors about the stability of the business model. When prices fall, some wells can no longer turn a profit, and companies must recognize the loss of value on their balance sheets.

Much of the decline for Exxon came from U.S. natural gas wells , which the company said it expects will eventually be developed and produced. Exxon's proved reserves totaled 24.8 billion barrels of oil and natural gas at the end of 2015, enough to last 16 years at the rate of its current output. In the past 10 years, Exxon has replaced an average of 115% of the oil and gas it has tapped every year.

Related

* Oil Slump Pressures Exxon -- Energy Journal (Feb. 3)

* S&P Cuts Ratings of 10 U.S. Oil Companies (Feb. 2)

* Exxon Mobil: When Bad Oil News Isn't So Bad (Feb. 2)

Exxon leaders such as former Chief Executive Lee Raymond have described replacing the company's own oil and gas production as one of their most significant day-to-day concerns. Because Exxon is about double the size or more of any of its Western peers such as Shell or Chevron Corp., it has always had to find far more oil and gas every year.

"This is one of the drawbacks for Exxon, it's just too big," said Fadel Gheit, an energy analyst with Oppenheimer & Co. "It's very difficult for the company to grow, especially at these price levels."

It was the first time in 22 years that Exxon hasn't been able to find enough oil and gas to replace its annual output. BP replaced only 61% of production. Shell's reserves declined by more than the company's 2015 output, a rare negative replacement ratio.

Chevron and French oil giant Total SA said they found more oil and gas than they drilled for last year, each replacing 107% of reserves.

Write to Bradley Olson at Bradley.Olson@wsj.com

Credit: By Bradley Olson

Subject: Petroleum industry; Natural gas reserves; Oil reserves; Natural gas

Company / organization: Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Total SA; NAICS: 447190, 324110, 211111; Name: Chevron Corp; NAICS: 324110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Feb 22, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1766929451

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1766929451?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Business News: Exxon Fails To Replace Its Output

Author: Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]22 Feb 2016: B.5.

ProQuest document link

Abstract:

Exxon leaders such as former Chief Executive Lee Raymond have described replacing the company's own oil and gas productionas one of their most significant concerns. Because Exxon is about double the size or more of any of its Western peers, it has always had to find far more oil and gas every year.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. disclosed that for the first time since 1994, it failed to find enough new oil and gas to replace what it produced last year.

The company said Friday it replaced only two-thirds of its 2015 oil and gas output, joining energy conglomerates such as Royal Dutch Shell PLC and BP PLC in failing to replace 100% of reserves.

The development speaks to the depth of a price crash that has intensified as crude continues to sell for about $30 a barrel.

Finding new oil and gas is a major indicator of the future prospects of energy conglomerates like Exxon. Reserve barrels have long acted as a signal to investors about the stability of the business model. When prices fall, some wells can no longer turn a profit, and companies must recognize the loss of value on their balance sheets.

Much of the decline for Exxon came from U.S. natural gas wells, which the company said it expects will eventually be developed and produced.Exxon's proved reserves totaled 24.8 billion barrels of oil and natural gas at the end of 2015, enough to last 16 years at the rate of its current output. In the past 10 years, Exxon has replaced an average of 115% of the oil and gas it has tapped every year.

Exxon leaders such as former Chief Executive Lee Raymond have described replacing the company's own oil and gas productionas one of their most significant concerns. Because Exxon is about double the size or more of any of its Western peers, it has always had to find far more oil and gas every year.

Credit: By Bradley Olson

Subject: Petroleum industry; Natural gas

Location: United States--US

Company / organization: Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.5

Publication year: 2016

Publication date: Feb 22, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1766945205

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1766945205?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Offers $12 Billion Bond Issue; The oil company bond sale suggests steady investor appetite for debt from quality issuers

Author: Cherney, Mike

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Feb 2016: n/a.

ProQuest document link

Abstract:

More * Pressed, U.S. Oil Producers Cut Back * Tankers Wait to Unload Oil * Banks Brace for Potential Energy Losses * Market Turmoil Eases, but Investors Remain Wary * Consumer-Focused Companies' Bonds Buck Drop by Their Stocks Exxon Mobil's borrowing costs relative to market benchmarks have risen since it sold bonds last year.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp., the oil giant that still has pristine triple-A ratings, sold $12 billion of new bonds Monday, one of the biggest corporate-debt deals of the year and a sign investors remain willing to lend to higher-quality companies despite concerns about global economic weakness.

Financial markets have been roiled this year by anxiety over the pace of economic growth in China, a prolonged bust in commodity prices and concerns that the U.S. could be headed toward recession. The debt market, even for highly rated companies, was largely shut in the first part of February as U.S. stocks were hit with a selloff.

But market tone has improved in recent weeks amid some more encouraging economic data about the strength of the U.S. consumer, a major driver of economic activity. Debt markets opened up again, allowing companies like Apple Inc. to sell new bonds, and the stock market has bounced back from its mid-February lows.

Exxon Mobil's debt sale indicates the bond boom of recent years isn't letting up yet, and that the debt markets still are available for highly rated companies that need to sell bonds to pay for debt refinancing, capital spending or share buybacks. Several other firms sold bonds Monday, including Hyatt Hotels Corp. and SunTrust Banks Inc., according to S&P Capital IQ LCD.

Still, the Exxon Mobil deal illustrates how the decline in energy prices since mid-2014 is hitting even the big multinational companies.

More

* Pressed, U.S. Oil Producers Cut Back

* Tankers Wait to Unload Oil

* Banks Brace for Potential Energy Losses

* Market Turmoil Eases, but Investors Remain Wary

* Consumer-Focused Companies' Bonds Buck Drop by Their Stocks

Exxon Mobil's borrowing costs relative to market benchmarks have risen since it sold bonds last year. A 10-year bond, for example, was priced to yield 1.3 percentage points more than Treasurys, compared with 0.58 percentage point for a 10-year bond last year, according to S&P Capital IQ LCD. A higher gap in yield means that investors are demanding additional compensation to own the company's bonds.

The company, which plans to use proceeds of its sale for general corporate purposes, is at risk of losing its triple-A rating. Standard & Poor's Ratings Services on Feb. 2 said it was reviewing the company's rating and could downgrade it by one notch within 90 days. On Feb. 25, Moody's Investors Service changed its outlook on the company to negative from stable, saying it expects low oil and gas prices to persist for the next few years, though it still affirmed the triple-A rating for now.

A big company like Exxon Mobil can withstand an increase in borrowing costs or a small credit-rating downgrade. But lower-rated, financially strapped energy companies are finding investors reluctant to buy new bonds, sending the price of existing bonds tumbling and prompting some firms to file for bankruptcy. Others are seeking to restructure their debt loads to buy more time for oil prices to recover, but analysts expect defaults to increase in the coming months.

Exxon Mobil's sale on Monday ties Apple Inc.'s debt deal as the second largest of the year, according to S&P Capital IQ LCD. They trail a $46 billion deal from Anheuser-Busch InBev NV, which sold the bonds in January to help pay for its acquisition of SABMiller PLC.

Bank of America Merrill Lynch, Citigroup Inc. and J.P. Morgan Chase & Co. led Exxon Mobil's sale on Monday.

Write to Mike Cherney at mike.cherney@wsj.com

Credit: By Mike Cherney

Subject: Bond issues; Petroleum industry; Stock exchanges; Prices; Breweries; Investments; Capital expenditures; Bond ratings; Energy industry

Location: United States--US China

Company / organization: Name: Hyatt Hotels Corp; NAICS: 721110; Name: Moodys Investors Service Inc; NAICS: 522110, 523930, 561450; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Standard & Poors Corp; NAICS: 541519, 511120, 523999, 561450; Name: SunTrust Banks Inc; NAICS: 551111; Name: Apple Inc; NAICS: 511210, 334111, 334220

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Feb 29, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1768633249

Document URL: https://login.ezproxy.uta.edu/login?url=https://search.proq uest.com/docview/1768633249?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Global Finance: Exxon Mobil Sells Bonds But Cost Has Increased

Author: Cherney, Mike

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]01 Mar 2016: C.3.

ProQuest document link

Abstract:

Exxon Mobil Corp., the oil giant that still has pristine triple-A ratings, sold $12 billion of new bonds Monday, one of the biggest corporate-debt deals of the year and a sign investors remain willing to lend to higher-quality companies despite concerns about global economic weakness.

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Exxon Mobil Corp., the oil giant that still has pristine triple-A ratings, sold $12 billion of new bonds Monday, one of the biggest corporate-debt deals of the year and a sign investors remain willing to lend to higher-quality companies despite concerns about global economic weakness.

Financial markets have been roiled this year by anxiety over the pace of economic growth in China, a prolonged bust in commodity prices and concerns that the U.S. could be headed toward recession. The debt market, even for highly rated companies, was largely shut in the first part of February as U.S. stocks were hit with a selloff.

But market tone has improved in recent weeks amid some more encouraging economic data about the strength of the U.S. consumer, a major driver of economic activity. Debt markets opened up again, allowing companies like Apple Inc. to sell new bonds, and the stock market has bounced back from its mid-February lows.

Exxon Mobil's debt sale indicates the bond boom of recent years isn't letting up yet, and that the debt markets still are available for highly rated companies that need to sell bonds to pay for debt refinancing, capital spending or share buybacks. Several other firms sold bonds Monday, including Hyatt Hotels Corp. and SunTrust Banks Inc., according to S&P Capital IQ LCD.

Still, the Exxon Mobil deal illustrates how the decline in energy prices since mid-2014 is hitting even the big multinational companies.

Exxon Mobil's borrowing costs relative to market benchmarks have risen since it sold bonds last year. A 10-year bond, for example, was priced to yield 1.3 percentage points more than Treasurys, compared with 0.58 percentage point for a 10-year bond last year, according to S&P Capital IQ LCD. A higher gap in yield means that investors are demanding additional compensation to own the company's bonds.

The company, which plans to use proceeds of its sale for general corporate purposes, is at risk of losing its triple-A rating. Standard & Poor's Ratings Services on Feb. 2 said it was reviewing the company's rating and could downgrade it by one notch within 90 days. On Feb. 25, Moody's Investors Service changed its outlook on the company to negative from stable, saying it expects low oil and gas prices to persist for the next few years, though it still affirmed the triple-A rating for now.

A big company like Exxon Mobil can withstand an increase in borrowing costs or a small credit-rating downgrade. But lower-rated, financially strapped energy companies are finding investors reluctant to buy new bonds, sending the price of existing bonds tumbling and prompting some firms to file for bankruptcy. Others are seeking to restructure their debt loads to buy more time for oil prices to recover, but analysts expect defaults to increase in the coming months.

Exxon Mobil's sale on Monday ties Apple Inc.'s debt deal as the second largest of the year, according to S&P Capital IQ LCD. They trail a $46 billion deal from Anheuser-Busch InBev NV, which sold the bonds in January to help pay for its acquisition of SABMiller PLC.

Bank of America Merrill Lynch, Citigroup Inc. and J.P. Morgan Chase & Co. led Exxon Mobil's sale on Monday.

Credit: By Mike Cherney

Subject: Bond issues; Petroleum industry

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 8510: Petroleum industry; 3400: Investment analysis & personal finance; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: C.3

Publication year: 2016

Publication date: Mar 1, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1768780015

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1768780015?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Reaffirms Plans to Cut 2016 Capital Spending; Oil giant plans capital expenditures of roughly $23 billion this year

Author: Stynes, Tess

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Mar 2016: n/a.

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Abstract:

In prepared remarks Wednesday, Exxon Mobil Chairman and Chief Executive Rex W. Tillerson said, "We have the financial flexibility to pursue attractive opportunities and can adjust our investment program based on market demand fundamentals."

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Exxon Mobil Corp. reaffirmed plans to cut capital spending 25% this year, as the oil giant met with analysts Wednesday in New York.

The company's annual analyst meeting comes a month after Exxon Mobil posted its weakest annual results in more than a decade , making it one of several global oil giants to get smacked by a prolonged commodities rout. Exxon's annual earnings were cut in half to $16.2 billion, forcing the Irving, Texas, company to put its share-buyback plan on hold to preserve cash.

Exxon Mobil on Wednesday reiterated that it plans capital expenditures of roughly $23 billion this year, down from a reduced $31.1 billion in 2015 . About a year ago, Exxon had projected its 2015 capital spending budget at $34 billion, a decline of 12% from 2014, but reined in spending as the year progressed.

In prepared remarks Wednesday, Exxon Mobil Chairman and Chief Executive Rex W. Tillerson said, "We have the financial flexibility to pursue attractive opportunities and can adjust our investment program based on market demand fundamentals."

The comment comes two days after Exxon Mobil on Monday sold $12 billion of new bonds , one of the biggest corporate-debt deals of the year and a sign investors remain willing to lend to higher-quality companies. However Exxon Mobil's borrowing costs relative to market benchmarks have risen since it sold bonds last year.

Exxon Mobil also said it is on track to start up 10 exploration-and-production projects in 2016 and 2017, and that the company is advancing several projects in other business segments.

The company also noted that its reduced its capital and operating costs by a net $12 billion last year, including a 9% decrease in unit costs in its exploration-and-production business.

Write to Tess Stynes at tess.stynes@wsj.com

Credit: By Tess Stynes

Subject: Petroleum industry; Capital expenditures; Financial performance

Location: Texas New York

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Mar 2, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1769713961

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1769713961?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited wit hout permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Business News: Exxon Backs '16 Spending Decrease

Author: Stynes, Tess

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]03 Mar 2016: B.2.

ProQuest document link

Abstract:

In prepared remarks Wednesday, Exxon Mobil Chairman and Chief Executive Rex W. Tillerson said, "We have the financial flexibility to pursue attractive opportunities and can adjust our investment program based on market demand fundamentals."

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Exxon Mobil Corp. reaffirmed plans to cut capital spending 25% this year, as the oil giant met with analysts Wednesday in New York.

The company's annual analyst meeting comes a month after Exxon Mobil posted its weakest annual results in more than a decade, making it one of several global oil giants to get smacked by a prolonged commodities rout. Exxon's annual earnings were cut in half to $16.2 billion, forcing the Irving, Texas, company to put its share-buyback plan on hold to preserve cash.

Exxon Mobil on Wednesday reiterated that it plans capital expenditures of roughly $23 billion this year, down from a reduced $31.1 billion in 2015. About a year ago, Exxon had projected its 2015 capital spending budget at $34 billion, a decline of 12% from 2014, but reined in spending as the year progressed.

In prepared remarks Wednesday, Exxon Mobil Chairman and Chief Executive Rex W. Tillerson said, "We have the financial flexibility to pursue attractive opportunities and can adjust our investment program based on market demand fundamentals."

The comment comes two days after Exxon Mobil sold $12 billion of new bonds, one of the biggest corporate-debt deals of the year and a sign investors remain willing to lend to higher-quality companies.

Credit: By Tess Stynes

Subject: Petroleum industry; Capital expenditures; Financial performance

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 9190: United States; 8510: Petroleum industry; 3100: Capital & debt management

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.2

Publication year: 2016

Publication date: Mar 3, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1769886621

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1769886621?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon's Canadian Unit Sells Gas Stations for $2.1 Billion; Almost 500 Esso outlets are divvied up between five fuel distributors

Author: Dawson, Chester

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Mar 2016: n/a.

ProQuest document link

Abstract: None available.

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CALGARY, Alberta--The Canadian unit of Exxon Mobil Corp. said Tuesday it has agreed to sell its remaining company-owned retail gas stations in Canada to five fuel distributors.

Imperial Oil Ltd. said the deal for 497 Esso-branded outlets across Canada is worth 2.8 billion Canadian dollars ($2.1 billion). The transaction is expected to close at the end of the year subject to regulatory approvals.

The buyers include Alimentation Couche-Tard Inc. for stations in Ontario and Quebec, 7-Eleven Canada Inc. for sites in Alberta and British Columbia, Harnois Groupe pétrolier Inc. for sites in Quebec, Parkland Fuel Corp. for Saskatchewan and Manitoba and Wilson Fuel Co. for sites in Nova Scotia and Newfoundland.

"We believe these agreements represent the best way for Imperial to grow in the highly competitive Canadian fuels marketing business," Imperial Chief Executive Rich Kruger said in a statement.

The stations involved in the deal are among 1,700 Esso retail outlets in Canada that are supplied by Imperial, which acts as a wholesaler.

The deal concludes a sale process that Imperial initiated early last year.

Write to Chester Dawson at chester.dawson@wsj.com

Credit: By Chester Dawson

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Mar 8, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1771 297353

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1771297353?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon's Imperial Oil Seeks Approval for New Canadian Oil-Sands Project; Company says Midzaghe project in Alberta could eventually produce 50,000 barrels daily

Author: Dawson, Chester

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Mar 2016: n/a.

ProQuest document link

Abstract:

Rich Kruger, Imperial's chief executive, told investors at a meeting in September that this innovation, called SA-SAGD, could double the volume of output from at least seven proposed oil sands projects, including Aspen and Midzaghe Raising production while lowering greenhouse gas emissions may help Imperial cope with new regulations and taxes designed to limit the industry's carbon footprint.

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CALGARY, Alberta--Exxon Mobil Corp.'s Canadian unit said Friday it has applied for regulatory approval of an oil-sands project that could start daily production of 50,000 barrels early in the next decade.

The proposed project, valued at 2 billion Canadian dollars ($1.5 billion), appears to buck a broader industry trend in which many oil-sands producers have canceled or postponed planned development of projects due to sliding crude prices and uncertainty about the impact of new environmental policies in Canada.

Imperial Oil Ltd., in which Exxon owns a controlling 69.6% stake, said the new Midzaghe project would use a new technology designed to reduce greenhouse gas emissions by 25% and potentially double production levels in comparison with existing extraction methods.

The company remains undecided on whether it will proceed with construction even if the government approves the project. "The filing for regulatory approval is a preliminary step and no investment decision has been made," said spokeswoman Lisa Schmidt.

That decision will be based on a number of factors, including the outlook for commodity prices and how its ability to provide a return on capital compares with the potential of competing projects in the company's portfolio, she said.

New oil-sands well projects typically require benchmark West Texas Intermediate crude prices to trade above $65 a barrel to break even. Current prices below $40 a barrel have made it challenging to justify investment to develop projects in Canada's oil sands.

Imperial had previously said it planned to seek permission for the Midzaghe in northeastern Alberta from the provincial government in early 2016. And the company said last fall that it planned to use the promising new extraction technique at another proposed oil sands site called Aspen.

A decision on construction of Aspen is expected as soon as next year, pending regulatory approval. if it moves ahead, it would be the first commercial use of the new technology, Imperial said.

Pilot tests conducted by the company using a modified form of its steam-assisted gravity drainage, or SAGD, technology showed a nearly 30% increase in production of heavy crude leached out of underground oil sands wells. The new technique involves adding a chemical solvent to improve the flow of oil to the surface and reduce the need for steam made with generators fired by natural gas.

Rich Kruger, Imperial's chief executive, told investors at a meeting in September that this innovation, called SA-SAGD, could double the volume of output from at least seven proposed oil sands projects, including Aspen and Midzaghe

Raising production while lowering greenhouse gas emissions may help Imperial cope with new regulations and taxes designed to limit the industry's carbon footprint. The government of Alberta has raised its carbon tax on large-scale emitters and vowed to impose a 100 million metric-ton cap on such emissions from oil sands production.

The industry currently emits 70 million metric tons of greenhouse gases a year and the Canadian environmental ministry has projected that emissions from oil-sands productions will hit 103 million metric tons annually as soon as 2020.

Write to Chester Dawson at chester.dawson@wsj.com

Credit: By Chester Dawson

Subject: Oil sands; Emissions; Petroleum industry; Emission standards; Environmental policy; Natural gas; Regulatory approval

Location: Canada

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Imperial Oil Ltd; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Mar 11, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1772356260

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1772356260?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Mobil in Talks to Buy Stake in Big Mozambique Gas Project From Eni SpA; Shows major oil companies are again hunting for deals after energy prices crashed in 2014

Author: Bradley Olson; Dana Mattioli; Shayndi Raice; Olson, Bradley; Mattioli, Dana; Shayndi Raice

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Mar 2016: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. is in advanced talks to acquire a stake in a giant Mozambique natural gas development project from Italy's Eni SpA, a sign that major oil companies are again hunting for deals after energy prices crashed in 2014.

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Exxon Mobil Corp. is in advanced talks to acquire a stake in a giant Mozambique natural gas development project from Italy's Eni SpA, a sign that major oil companies are again hunting for deals after energy prices crashed in 2014.

The acquisition could be announced in coming weeks, according to people familiar with the matter. Terms of the deal aren't clear, but one person indicated Exxon is in talks to buy a stake of around 20% from Eni, which owns 50% of the development.

As with all discussions over deals, timing could slip, talks could fall apart at the last minute or the size of the stake could change.

Any such purchase likely would be a drop in the bucket for Exxon, which has a market value of around $350 billion. A 20% stake in the concession sold for more than $4 billion in 2013, before energy prices tumbled.

The Mozambique Area 4 offshore development is expected to become a major global supplier of liquefied natural gas. Eni has said Area 4 may hold 85 trillion cubic feet of gas. The Italian company estimates it may hold enough gas to meet U.S. residential consumption for nearly two decades.

For Exxon, the assets would represent an important move toward adding to oil and gas reserves with acquisitions during the downturn in oil prices, a step many analysts have estimated it would take as prices fell. Last year, the Irving, Texas-based company was only able to replace about two-thirds of the oil and natural gas it produced , the first time that has happened in 22 years.

The Mozambique project involves separate giant natural gas discoveries in the Indian Ocean that a host of companies want to exploit. Eni and Anadarko Petroleum Corp. made the original discoveries in the area and agreed last year to coordinate development that is likely to cost in the tens of billions of dollars.

Anadarko owns a 26.5% working interest in Area 1, which is a separate tract not included in the Eni deal under discussion with Exxon Mobil. Area 1 could hold as much as 75 trillion cubic feet of gas. Partners there include Japan's Mitsui & Co. Anadarko isn't a partner in Area 4.

The projects come at a difficult time for Anadarko and Eni. As oil and gas prices have plunged, Anadarko has said it would cut spending by almost half, complicating its ability to advance the Mozambique development . Both companies have yet to make a final investment decision on the project. It is unclear how a potential Eni stake sale would impact the funding picture for Anadarko.

The backing of Exxon, which has a AAA credit rating and recently sold $12 billion in bonds to build its acquisition war chest, could be a lifeline for Eni as it seeks to make the discovery viable. Exxon is said to have an interest in becoming an operator in the development, people familiar with the matter said.

Energy deal making has been relatively muted because of the downturn in oil and gas prices . The largest energy deal so far this year is TransCanada Corp.'s agreement to buy Columbia Pipeline Group Inc. for $10.2 billion.

Eric Sylvers contributed to this article.

Write to Bradley Olson at Bradley.Olson@wsj.com , Dana Mattioli at dana.mattioli@wsj.com and Shayndi Raice at shayndi.raice@wsj.com

Credit: By Bradley Olson, Dana Mattioli and Shayndi Raice

Subject: Natural gas reserves; Equity stake; Natural gas; Oil reserves; Petroleum industry

Location: Italy

Company / organization: Name: Eni SpA; NAICS: 324110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Mar 24, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1775510583

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1775510583?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Business News: Exxon Explores Taking Stake in Gas Project

Author: Bradley Olson; Dana Mattioli; Shayndi Raice; Olson, Bradley; Mattioli, Dana; Shayndi Raice

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]25 Mar 2016: B.3.

ProQuest document link

Abstract:

Exxon Mobil Corp. is in advanced talks to acquire a stake in a large Mozambique natural-gas project from Italy's Eni SpA, a sign that major oil companies are again hunting for deals after energy prices crashed in 2014.

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Full text:  

Exxon Mobil Corp. is in advanced talks to acquire a stake in a large Mozambique natural-gas project from Italy's Eni SpA, a sign that major oil companies are again hunting for deals after energy prices crashed in 2014.

The acquisition could be announced in coming weeks, according to people familiar with the matter.

Terms of the deal aren't clear, but one person indicated Exxon is in talks to buy a stake of around 20% from Eni, which owns 50% of the development.

As with all discussions over deals, timing could slip, talks could fall apart at the last minute or the size of the stake could change.

A 20% stake in the concession sold for more than $4 billion in 2013, before energy prices tumbled, would be a drop in the bucket for Exxon, which has a market value of around $350 billion.

The Mozambique Area 4 offshore development is expected to become a major global supplier of liquefied natural gas.

Eni has said Area 4 may hold 85 trillion cubic feet of gas.

The Italian company estimates it may hold enough gas to meet U.S. residential consumption for nearly two decades.

For Exxon, the assets would represent an important move toward adding to oil-and-gas reserves with acquisitions during the downturn in oil prices, a step many analysts have expected it would take as prices fell.

Last year, the Irving, Texas-based company was only able to replace about two-thirds of the oil and natural gas it produced, the first time that has happened in 22 years.

The Mozambique project involves separate natural-gas discoveries in the Indian Ocean that a host of companies want to exploit.

Eni and Anadarko Petroleum Corp. made the original discoveries in the area and agreed last year to coordinate development that is likely to cost in the tens of billions of dollars.

Anadarko owns a 26.5% working interest in Area 1, which is a separate tract not included in the Eni deal under discussion with Exxon Mobil.

Area 1 could hold as much as 75 trillion cubic feet of gas. Partners there include Japan's Mitsui & Co. Anadarko isn't a partner in Area 4.

The projects come at a difficult time for Anadarko and Eni. As oil and gas prices have plunged, Anadarko has said it would cut spending by almost half, complicating its ability to advance the Mozambique development.

Both companies have yet to make a final investment decision on the project. It is unclear how a potential Eni stake sale would impact the funding picture for Anadarko.

The backing of Exxon, which has a AAA credit rating and recently sold $12 billion in bonds to build its acquisition war chest, could be a lifeline for Eni as it seeks to make the discovery viable.

Exxon is said to have an interest in becoming an operator in the development, people familiar with the matter said.

Deal making in the energy industry has been relatively muted because of the downturn in oil and gas prices.

The largest energy deal so far this year is TransCanada Corp.'s agreement to buy Columbia Pipeline Group Inc. for $10.2 billion.

---

Eric Sylvers contributed to this article.

Credit: By Bradley Olson, Dana Mattioli and Shayndi Raice

Subject: Acquisitions & mergers; Equity stake; Petroleum industry; Natural gas; Energy industry

Location: Italy

Company / organization: Name: Eni SpA; NAICS: 324110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2016

Publication date: Mar 25, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1775709048

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1775709048?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Gets Approval to Restart Torrance Refinery; Company to pay $5 million in penalties for violations related to 2015 explosion at California refinery

Author: Molinski, Dan

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Apr 2016: n/a.

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Abstract:

[...]the plant has been barely functional for the past year, operating at less than 20% capacity.

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Regulators late Saturday approved Exxon Mobil Corp.'s request to restart its refinery in Torrance, Calif., which has been largely shut since an explosion last year that injured four people.

The South Coast Air Quality Management District's hearing board said Exxon will have to pay $5 million in penalties for violations related to the explosion and likely excess pollution during the restart process.

Exxon plans to sell the 155,000-barrel-a-day refinery in southern California to PBF Energy Inc. for more than $500 million in a deal announced in September. But PBF has said it won't complete the deal until Exxon first demonstrates that the plant is in good, working condition.

The 2015 explosion forced a shutdown of the Exxon refinery's key unit that makes gasoline, called the Fluid Catalytic Cracking Unit. As a result, the plant has been barely functional for the past year, operating at less than 20% capacity.

Exxon and the regulators had already agreed to a preliminary agreement for the restart earlier this week. But the final deal had to be voted on Saturday after a public hearing, which lasted throughout the day as many residents stood up, one after another, to express concern and opposition to a refinery with a long rap sheet of safety and pollution issues. The vote was taken some 12 hours after the hearing began Saturday morning.

In an emailed statement, Exxon expressed its gratitude to regulators: "We agree with the decision of the South Coast Air Quality Management District Hearing Board and appreciate its hard work and guidance as we work to safely restart the Torrance Refinery."

A restart of the facility could mean drivers in southern California and throughout the state will eventually pay slightly less for gasoline because the refinery is an important part of the region's gasoline-refining network. Its closure for the past year has reduced supply, and that has made the state's pump prices, which are already higher than most due to taxes and stricter antipollution requirements, even higher.

California pays an average of $2.80 a gallon for gasoline, compared with the national average of $2.06, according to price-tracking firm GasBuddy.

Bringing the FCCU back to full power could take several weeks, and the process will likely require Exxon to send more pollutants into the air than normal. The approval order, which allows Exxon to release higher emissions of particulate matter for longer periods than normal, is in effect until July 29.

Write to Dan Molinski at Dan.Molinski@wsj.com

Credit: By Dan Molinski

Subject: Petroleum industry; Explosions; Public hearings; Petroleum refineries; Quality management

Location: California

Company / organization: Name: PBF Energy; NAICS: 324110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Apr 3, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1777813993

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1777813993?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Pay Shrinks for Most Oil CEOs, as Crude's Swoon Hits Stocks; For Exxon's Tillerson, total compensation for 2015 fell 18%, but BP's Dudley got pay bump

Author: Olson, Bradley; Kent, Sarah

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Apr 2016: n/a.

ProQuest document link

Abstract:

In their annual filings, the biggest oil companies take pains to explain the complexities of their senior executives' compensation, including performance pay tied to the company's share price and options that can take as long as a decade to vest.

Links: 360 Link to Full Text

Full text:  

Most--but not all--top oil executives are seeing their pay shrink, after a plunge in crude prices that has erased $200 billion in stock-market value from the world's largest publicly traded energy companies.

Bob Dudley, BP PLC's chief executive, enjoyed about a 20% bump in pay to $19.6 million in 2015, despite his company's $5.2 billion loss for the year and an accompanying stock-price decline of 11%.

Many BP shareholders are incensed by the increase, and investor-advisory firms including Institutional Shareholder Services are counseling them not to ratify Mr. Dudley's pay package at the company's annual meeting Thursday.

"This proposed increase is both unreasonable and insensitive," said Ashley Hamilton Claxton, corporate-governance manager at Royal London Asset Management, which holds BP shares worth about $600 million. She plans to vote against Mr. Dudley's pay.

BP defended the pay package. "Despite the very challenging environment, BP's safety and operating performance was excellent throughout 2015, and management also responded early and decisively to the steep fall in the oil price," a company spokesman said.

Other executive pay packages shrank along with stock prices. Exxon Mobil Corp. released data Wednesday that showed CEO Rex Tillerson's salary rose 6% to $3 million in 2015 even as the company's shares lost 15% of their value. But Mr. Tillerson's total pay fell 18% to $27.3 million, due to a lower bonus, stock awards and interest-rate-related changes in his pension.

For the past five years, oil giants Exxon, Chevron Corp., Royal Dutch Shell PLC and BP have paid their top bosses nearly $500 million in combined compensation, even though the companies' annualized returns for the period have undershot those of the S&P 500.

In 2015, Chevron chief John Watson's pay, including salary, bonus and stock options, rose 3%, but with pension-benefit changes his total compensation fell by 15% to about $22 million.

Most of Mr. Watson's pay rises and falls with shareholder value, based on stock prices, with added emphasis on safety and other factors aligned with good corporate governance, said Kurt Glaubitz, a company spokesman.

"Overall, Mr. Watson's 2015 compensation package recognizes and reflects the value he continues to deliver to Chevron's stockholders," Mr. Glaubitz said.

The salary and bonus of Anglo-Dutch Shell's CEO, Ben van Beurden, who is paid in euros, fell 13% to $5.5 million when translated into dollars.

Mr. van Beurden's overall pay for 2015, including pension changes, tumbled 81%. Shell's profit for the year plunged 80%.

"Shell's executive compensation reflects delivery of our strategy, measured by both short-term and long-term targets," said Jonathan French, a Shell spokesman. "There is a clear alignment between the company's performance and our compensation policies."

Stockholders at Chevron, Exxon and Shell will get to vote on executive pay next month--though the votes aren't binding. At those meetings, the companies are expected to outline their worst first-quarter performances in decades, analysts say.

Including BP, the four biggest Western oil companies have laid off, or are in the process of shedding, more than 25,000 workers because of the protracted downturn in energy prices.

At the two dozen energy companies in the S&P 500 index, median pay, excluding pension changes, fell less than 1% from 2014 last year, according to an analysis by ISS Corporate Solutions Inc. That's far less than the cumulative 24% price decline for those companies. Executive compensation in other industries, except for retailing, increased last year.

In their annual filings, the biggest oil companies take pains to explain the complexities of their senior executives' compensation, including performance pay tied to the company's share price and options that can take as long as a decade to vest. Those incentives are paid out over the long term, but they often get counted as part of annual pay packages.

Compensation packages at many energy companies are built to work well in most market conditions, but some were never set up to manage the impact of a crash in oil-and-gas prices, said John Roe, head of advisory at ISS Corporate Solutions.

"Sometimes, that produces results that don't pass the smell test," he said. "When that happens, companies need to step back and make sure that they are more responsive and aligned with shareholders. When they don't, they will run into issues year after year."

ISS hasn't issued its recommendations on whether shareholders should endorse or reject pay packages at Exxon, Chevron and Shell, but says it will do so in coming weeks.

One reason for discrepancies between executive pay and stock performance is that BP and other oil companies reward executives based on relative shareholder returns. That can blunt the impact of rising or falling oil prices because payouts depend more on how well a company performs relative to its peers, said Kevin Murphy, a professor at the University of Southern California's Marshall School of Business.

Compared with the other three major oil companies, BP shares fell the least in 2015, dropping 11.7% including reinvested dividends, according to data from Morningstar. That is slightly ahead of Exxon's 12.6% share-price decline. Chevron's stock fell 16% last year, while Shell's was down 26%.

Write to Bradley Olson at Bradley.Olson@wsj.com and Sarah Kent at sarah.kent@wsj.com

Corrections & Amplifications

For Exxon's Tillerson, total compensation for 2015 fell 18%. The sub-heading of an earlier version of this article misstated the year as 2005. (April 14, 2016)

Credit: By Bradley Olson and Sarah Kent

Subject: Executive compensation; Petroleum industry; Chief executive officers; Prices; Wages & salaries; Energy industry

People: van Beurden, Ben Tillerson, Rex W

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Royal London Asset Management; NAICS: 523930; Name: University of Southern California; NAICS: 611310

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Apr 9, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1780766133

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1780766133?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Pay Shrinks for Most Oil CEOs, as Crude's Swoon Hits Stocks; For Exxon's Tillerson, total compensation for 2015 fell 18%, but BP's Dudley got pay bump

Author: Olson, Bradley; Kent, Sarah

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Apr 2016: n/a.

ProQuest document link

Abstract:

In their annual filings, the biggest oil companies take pains to explain the complexities of their senior executives' compensation, including performance pay tied to the company's share price and options that can take as long as a decade to vest.

Links: 360 Link to Full Text

Full text:  

Most--but not all--top oil executives are seeing their pay shrink, after a plunge in crude prices that has erased $200 billion in stock-market value from the world's largest publicly traded energy companies.

Bob Dudley, BP PLC's chief executive, enjoyed about a 20% bump in pay to $19.6 million in 2015, despite his company's $5.2 billion loss for the year and an accompanying stock-price decline of 11%.

Many BP shareholders are incensed by the increase, and investor-advisory firms including Institutional Shareholder Services are counseling them not to ratify Mr. Dudley's pay package at the company's annual meeting Thursday.

"This proposed increase is both unreasonable and insensitive," said Ashley Hamilton Claxton, corporate-governance manager at Royal London Asset Management, which holds BP shares worth about $600 million. She plans to vote against Mr. Dudley's pay.

BP defended the pay package. "Despite the very challenging environment, BP's safety and operating performance was excellent throughout 2015, and management also responded early and decisively to the steep fall in the oil price," a company spokesman said.

Other executive pay packages shrank along with stock prices. Exxon Mobil Corp. released data Wednesday that showed CEO Rex Tillerson's salary rose 6% to $3 million in 2015 even as the company's shares lost 15% of their value. But Mr. Tillerson's total pay fell 18% to $27.3 million, due to a lower bonus, stock awards and interest-rate-related changes in his pension.

For the past five years, oil giants Exxon, Chevron Corp., Royal Dutch Shell PLC and BP have paid their top bosses nearly $500 million in combined compensation, even though the companies' annualized returns for the period have undershot those of the S&P 500.

In 2015, Chevron chief John Watson's pay, including salary, bonus and stock options, rose 3%, but with pension-benefit changes his total compensation fell by 15% to about $22 million.

Most of Mr. Watson's pay rises and falls with shareholder value, based on stock prices, with added emphasis on safety and other factors aligned with good corporate governance, said Kurt Glaubitz, a company spokesman.

"Overall, Mr. Watson's 2015 compensation package recognizes and reflects the value he continues to deliver to Chevron's stockholders," Mr. Glaubitz said.

The salary and bonus of Anglo-Dutch Shell's CEO, Ben van Beurden, who is paid in euros, fell 13% to $5.5 million when translated into dollars.

Mr. van Beurden's overall pay for 2015, including pension changes, tumbled 81%. Shell's profit for the year plunged 80%.

"Shell's executive compensation reflects delivery of our strategy, measured by both short-term and long-term targets," said Jonathan French, a Shell spokesman. "There is a clear alignment between the company's performance and our compensation policies."

Stockholders at Chevron, Exxon and Shell will get to vote on executive pay next month--though the votes aren't binding. At those meetings, the companies are expected to outline their worst first-quarter performances in decades, analysts say.

Including BP, the four biggest Western oil companies have laid off, or are in the process of shedding, more than 25,000 workers because of the protracted downturn in energy prices.

At the two dozen energy companies in the S&P 500 index, median pay, excluding pension changes, fell less than 1% from 2014 last year, according to an analysis by ISS Corporate Solutions Inc. That's far less than the cumulative 24% price decline for those companies. Executive compensation in other industries, except for retailing, increased last year.

In their annual filings, the biggest oil companies take pains to explain the complexities of their senior executives' compensation, including performance pay tied to the company's share price and options that can take as long as a decade to vest. Those incentives are paid out over the long term, but they often get counted as part of annual pay packages.

Compensation packages at many energy companies are built to work well in most market conditions, but some were never set up to manage the impact of a crash in oil-and-gas prices, said John Roe, head of advisory at ISS Corporate Solutions.

"Sometimes, that produces results that don't pass the smell test," he said. "When that happens, companies need to step back and make sure that they are more responsive and aligned with shareholders. When they don't, they will run into issues year after year."

ISS hasn't issued its recommendations on whether shareholders should endorse or reject pay packages at Exxon, Chevron and Shell, but says it will do so in coming weeks.

One reason for discrepancies between executive pay and stock performance is that BP and other oil companies reward executives based on relative shareholder returns. That can blunt the impact of rising or falling oil prices because payouts depend more on how well a company performs relative to its peers, said Kevin Murphy, a professor at the University of Southern California's Marshall School of Business.

Compared with the other three major oil companies, BP shares fell the least in 2015, dropping 11.7% including reinvested dividends, according to data from Morningstar. That is slightly ahead of Exxon's 12.6% share-price decline. Chevron's stock fell 16% last year, while Shell's was down 26%.

Write to Bradley Olson at Bradley.Olson@wsj.com and Sarah Kent at sarah.kent@wsj.com

Corrections & Amplifications

For Exxon's Tillerson, total compensation for 2015 fell 18%. The sub-heading of an earlier version of this article misstated the year as 2005. (April 14, 2016)

Credit: By Bradley Olson and Sarah Kent

Subject: Executive compensation; Petroleum industry; Chief executive officers; Prices; Wages & salaries; Energy industry

People: van Beurden, Ben Tillerson, Rex W

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Royal London Asset Management; NAICS: 523930; Name: University of Southern California; NAICS: 611310

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Apr 10, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1780748658

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1780748658?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Pay Shrinks for Most Oil CEOs, as Crude's Swoon Hits Stocks; For Exxon's Tillerson, total compensation for 2015 fell 18%, but BP's Dudley got pay bump

Author: Olson, Bradley; Kent, Sarah

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Apr 2016: n/a.

ProQuest document link

Abstract:

In their annual filings, the biggest oil companies take pains to explain the complexities of their senior executives' compensation, including performance pay tied to the company's share price and options that can take as long as a decade to vest.

Links: 360 Link to Full Text

Full text:  

Most--but not all--top oil executives are seeing their pay shrink, after a plunge in crude prices that has erased $200 billion in stock-market value from the world's largest publicly traded energy companies.

Bob Dudley, BP PLC's chief executive, enjoyed about a 20% bump in pay to $19.6 million in 2015, despite his company's $5.2 billion loss for the year and an accompanying stock-price decline of 11%.

Many BP shareholders are incensed by the increase, and investor-advisory firms including Institutional Shareholder Services are counseling them not to ratify Mr. Dudley's pay package at the company's annual meeting Thursday.

"This proposed increase is both unreasonable and insensitive," said Ashley Hamilton Claxton, corporate-governance manager at Royal London Asset Management, which holds BP shares worth about $600 million. She plans to vote against Mr. Dudley's pay.

BP defended the pay package. "Despite the very challenging environment, BP's safety and operating performance was excellent throughout 2015, and management also responded early and decisively to the steep fall in the oil price," a company spokesman said.

Other executive pay packages shrank along with stock prices. Exxon Mobil Corp. released data Wednesday that showed CEO Rex Tillerson's salary rose 6% to $3 million in 2015 even as the company's shares lost 15% of their value. But Mr. Tillerson's total pay fell 18% to $27.3 million, due to a lower bonus, stock awards and interest-rate-related changes in his pension.

For the past five years, oil giants Exxon, Chevron Corp., Royal Dutch Shell PLC and BP have paid their top bosses nearly $500 million in combined compensation, even though the companies' annualized returns for the period have undershot those of the S&P 500.

In 2015, Chevron chief John Watson's pay, including salary, bonus and stock options, rose 3%, but with pension-benefit changes his total compensation fell by 15% to about $22 million.

Most of Mr. Watson's pay rises and falls with shareholder value, based on stock prices, with added emphasis on safety and other factors aligned with good corporate governance, said Kurt Glaubitz, a company spokesman.

"Overall, Mr. Watson's 2015 compensation package recognizes and reflects the value he continues to deliver to Chevron's stockholders," Mr. Glaubitz said.

The salary and bonus of Anglo-Dutch Shell's CEO, Ben van Beurden, who is paid in euros, fell 13% to $5.5 million when translated into dollars.

Mr. van Beurden's overall pay for 2015, including pension changes, tumbled 81%. Shell's profit for the year plunged 80%.

"Shell's executive compensation reflects delivery of our strategy, measured by both short-term and long-term targets," said Jonathan French, a Shell spokesman. "There is a clear alignment between the company's performance and our compensation policies."

Stockholders at Chevron, Exxon and Shell will get to vote on executive pay next month--though the votes aren't binding. At those meetings, the companies are expected to outline their worst first-quarter performances in decades, analysts say.

Including BP, the four biggest Western oil companies have laid off, or are in the process of shedding, more than 25,000 workers because of the protracted downturn in energy prices.

At the two dozen energy companies in the S&P 500 index, median pay, excluding pension changes, fell less than 1% from 2014 last year, according to an analysis by ISS Corporate Solutions Inc. That's far less than the cumulative 24% price decline for those companies. Executive compensation in other industries, except for retailing, increased last year.

In their annual filings, the biggest oil companies take pains to explain the complexities of their senior executives' compensation, including performance pay tied to the company's share price and options that can take as long as a decade to vest. Those incentives are paid out over the long term, but they often get counted as part of annual pay packages.

Compensation packages at many energy companies are built to work well in most market conditions, but some were never set up to manage the impact of a crash in oil-and-gas prices, said John Roe, head of advisory at ISS Corporate Solutions.

"Sometimes, that produces results that don't pass the smell test," he said. "When that happens, companies need to step back and make sure that they are more responsive and aligned with shareholders. When they don't, they will run into issues year after year."

ISS hasn't issued its recommendations on whether shareholders should endorse or reject pay packages at Exxon, Chevron and Shell, but says it will do so in coming weeks.

One reason for discrepancies between executive pay and stock performance is that BP and other oil companies reward executives based on relative shareholder returns. That can blunt the impact of rising or falling oil prices because payouts depend more on how well a company performs relative to its peers, said Kevin Murphy, a professor at the University of Southern California's Marshall School of Business.

Compared with the other three major oil companies, BP shares fell the least in 2015, dropping 11.7% including reinvested dividends, according to data from Morningstar. That is slightly ahead of Exxon's 12.6% share-price decline. Chevron's stock fell 16% last year, while Shell's was down 26%.

Write to Bradley Olson at Bradley.Olson@wsj.com and Sarah Kent at sarah.kent@wsj.com

Corrections & Amplifications

For Exxon's Tillerson, total compensation for 2015 fell 18%. The sub-heading of an earlier version of this article misstated the year as 2005. (April 13, 2016)

Credit: By Bradley Olson and Sarah Kent

Subject: Executive compensation; Petroleum industry; Chief executive officers; Prices; Wages & salaries; Energy industry

People: van Beurden, Ben Tillerson, Rex W

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Royal London Asset Management; NAICS: 523930; Name: University of Southern California; NAICS: 611310

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Apr 11, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1780749481

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1780749481?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Calpers Pushes Exxon to Outline Potential Effects of Climate-Change Initiatives; Following global accord to limit earth's warming, shareholders ask for added disclosures from energy investments

Author: Friedman, Nicole; Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Apr 2016: n/a.

ProQuest document link

Abstract:

Exxon and Chevron executives have had a consistent message for years on the future of oil and gas drilling, saying that economic growth in emerging economies such as India and China will power fossil-fuel demand for many decades.

Links: 360 Link to Full Text

Full text:  

Investors holding more than $5 billion in Exxon Mobil Corp. shares are urging the company to disclose how its business would be affected by the global push to slow warming atmospheric temperatures.

The California Public Employees' Retirement System is planning an effort to put its muscle behind climate-related shareholder proposals for the first time. The outreach campaign is expected to test the strength of climate activism among shareholders of the world's largest publicly traded oil company, whose stock-market value was $345.55 billion as of Monday, according to FactSet.

Environmentally minded Exxon investors have sought for decades to use the company's annual meeting, set for next month, as a bully pulpit, usually with limited success. This year, a change in investor attitude following the December climate talks in Paris and an active proxy campaign could garner far more votes than in previous contests, analysts say.

Similar proposals passed overwhelmingly last year after executives at Royal Dutch Shell PLC and BP PLC decided to embrace them, but climate-related resolutions have never exceeded 35% in votes at the annual meetings of Exxon or Chevron Corp.

"This isn't an environmental issue. This has moved into the mainstream following the Paris agreement," said Anne Simpson, Calpers' investment director of global governance.

Nearly 200 countries pledged in Paris in December to hold the rise in average global temperatures to less than two degrees Celsius above pre-industrial levels.

Calpers is launching a campaign to encourage shareholders to support proposals urging Exxon, Chevron and 10 other energy and mining companies to examine how much of their reserves would have to be left untapped if the two-degree goal were to be achieved, Ms. Simpson said.

Exxon and Chevron executives have had a consistent message for years on the future of oil and gas drilling, saying that economic growth in emerging economies such as India and China will power fossil-fuel demand for many decades. The companies as well as forecasters including the International Energy Agency don't yet consider the low-carbon scenario contemplated in the Paris agreement to be a base case, or most likely, outcome.

Last week, Chevron recommended a vote against the proposal. The company said it already accounts for climate risks in its project planning, and that such a disclosure would put it at a competitive disadvantage.

Both Exxon and Chevron sought to keep the two-degree proposals from reaching their proxy ballot, telling the U.S. Securities and Exchange Commission they are vague and unnecessary given their other disclosures about climate risks. Last month, the SEC ruled the proposals could go forward. The resolutions are nonbinding.

More than 30 investors, including New York City's pension funds and Legal & General Investment Management, have committed to supporting the Exxon resolution, according to Ceres, a non profit that advocates for sustainable business.

The campaign is part of a nascent movement advocating for greater understanding of climate risks. The central idea is that to achieve the two-degrees Celsius goal, a significant amount of oil, gas and coal held by world producers would have to remain in the ground.

Barclays PLC estimates that in a two-degree scenario, energy producers would earn $103 trillion in revenue between 2014 and 2040, $34 trillion lower than in a base-case scenario for energy consumption.

Some experts say these concerns are overblown. Companies are valued on their expected production in the next 10 to 15 years, not on their entire portfolio of reserves, said Nancy Meyer, associate director for climate strategy at consulting firm IHS.

"The whole premise that companies are financially risky today because their nonproved assets may be unburned...doesn't necessarily align with how those assets are valued in the marketplace," Ms. Meyer said.

Today's low energy prices are a bigger risk to producers than potential future regulations, she said.

Bank of England Governor Mark Carney made speeches in 2014 and 2015 warning that climate change poses risks to investors and insurers. The G-20 group of industrial nations asked the Financial Stability Board in Basel, Switzerland, to examine the issue.

One problem is that there is little consensus on how investors should quantify carbon risks. Around 400 sets of guidelines exist for disclosures related to climate or sustainability, according to a report released March 31 by a Financial Stability Board task force chaired by Former New York City Mayor Michael Bloomberg.

"The first step is just about getting enough information" from companies, "so that we can make decisions that are grounded in economics," said Jessica Ground, global head of stewardship at Schroders, which manages $462 billion in assets and is supporting the climate disclosure resolutions.

Write to Nicole Friedman at nicole.friedman@wsj.com and Bradley Olson at Bradley.Olson@wsj.com

Credit: By Nicole Friedman and Bradley Olson

Subject: Petroleum industry; Shareholder voting; Investments; Proposals

People: Simpson, Anne

Company / organization: Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: International Energy Agency; NAICS: 926130, 928120, 541720; Name: Public Employees Retirement System-California; NAICS: 525110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Apr 12, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1780173906

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1780173906?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Pay Shrinks for Most Oil CEOs, as Crude's Swoon Hits Stocks; For Exxon's Tillerson, total compensation for 2015 fell 18%, but BP's Dudley got pay bump

Author: Olson, Bradley; Kent, Sarah

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Apr 2016: n/a.

ProQuest document link

Abstract:

In their annual filings, the biggest oil companies take pains to explain the complexities of their senior executives' compensation, including performance pay tied to the company's share price and options that can take as long as a decade to vest.

Links: 360 Link to Full Text

Full text:  

Most--but not all--top oil executives are seeing their pay shrink, after a plunge in crude prices that has erased $200 billion in stock-market value from the world's largest publicly traded energy companies.

Bob Dudley, BP PLC's chief executive, enjoyed about a 20% bump in pay to $19.6 million in 2015, despite his company's $5.2 billion loss for the year and an accompanying stock-price decline of 11%.

Many BP shareholders are incensed by the increase, and investor-advisory firms including Institutional Shareholder Services are counseling them not to ratify Mr. Dudley's pay package at the company's annual meeting Thursday.

"This proposed increase is both unreasonable and insensitive," said Ashley Hamilton Claxton, corporate-governance manager at Royal London Asset Management, which holds BP shares worth about $600 million. She plans to vote against Mr. Dudley's pay.

BP defended the pay package. "Despite the very challenging environment, BP's safety and operating performance was excellent throughout 2015, and management also responded early and decisively to the steep fall in the oil price," a company spokesman said.

Other executive pay packages shrank along with stock prices. Exxon Mobil Corp. released data Wednesday that showed CEO Rex Tillerson's salary rose 6% to $3 million in 2015 even as the company's shares lost 15% of their value. But Mr. Tillerson's total pay fell 18% to $27.3 million, due to a lower bonus, stock awards and interest-rate-related changes in his pension.

For the past five years, oil giants Exxon, Chevron Corp., Royal Dutch Shell PLC and BP have paid their top bosses nearly $500 million in combined compensation, even though the companies' annualized returns for the period have undershot those of the S&P 500.

In 2015, Chevron chief John Watson's pay, including salary, bonus and stock options, rose 3%, but with pension-benefit changes his total compensation fell by 15% to about $22 million.

Most of Mr. Watson's pay rises and falls with shareholder value, based on stock prices, with added emphasis on safety and other factors aligned with good corporate governance, said Kurt Glaubitz, a company spokesman.

"Overall, Mr. Watson's 2015 compensation package recognizes and reflects the value he continues to deliver to Chevron's stockholders," Mr. Glaubitz said.

The salary and bonus of Anglo-Dutch Shell's CEO, Ben van Beurden, who is paid in euros, fell 13% to $5.5 million when translated into dollars.

Mr. van Beurden's overall pay for 2015, including pension changes, tumbled 81%. Shell's profit for the year plunged 80%.

"Shell's executive compensation reflects delivery of our strategy, measured by both short-term and long-term targets," said Jonathan French, a Shell spokesman. "There is a clear alignment between the company's performance and our compensation policies."

Stockholders at Chevron, Exxon and Shell will get to vote on executive pay next month--though the votes aren't binding. At those meetings, the companies are expected to outline their worst first-quarter performances in decades, analysts say.

Including BP, the four biggest Western oil companies have laid off, or are in the process of shedding, more than 25,000 workers because of the protracted downturn in energy prices.

At the two dozen energy companies in the S&P 500 index, median pay, excluding pension changes, fell less than 1% from 2014 last year, according to an analysis by ISS Corporate Solutions Inc. That's far less than the cumulative 24% price decline for those companies. Executive compensation in other industries, except for retailing, increased last year.

In their annual filings, the biggest oil companies take pains to explain the complexities of their senior executives' compensation, including performance pay tied to the company's share price and options that can take as long as a decade to vest. Those incentives are paid out over the long term, but they often get counted as part of annual pay packages.

Compensation packages at many energy companies are built to work well in most market conditions, but some were never set up to manage the impact of a crash in oil-and-gas prices, said John Roe, head of advisory at ISS Corporate Solutions.

"Sometimes, that produces results that don't pass the smell test," he said. "When that happens, companies need to step back and make sure that they are more responsive and aligned with shareholders. When they don't, they will run into issues year after year."

ISS hasn't issued its recommendations on whether shareholders should endorse or reject pay packages at Exxon, Chevron and Shell, but says it will do so in coming weeks.

One reason for discrepancies between executive pay and stock performance is that BP and other oil companies reward executives based on relative shareholder returns. That can blunt the impact of rising or falling oil prices because payouts depend more on how well a company performs relative to its peers, said Kevin Murphy, a professor at the University of Southern California's Marshall School of Business.

Compared with the other three major oil companies, BP shares fell the least in 2015, dropping 11.7% including reinvested dividends, according to data from Morningstar. That is slightly ahead of Exxon's 12.6% share-price decline. Chevron's stock fell 16% last year, while Shell's was down 26%.

Write to Bradley Olson at Bradley.Olson@wsj.com and Sarah Kent at sarah.kent@wsj.com

Corrections & Amplifications

For Exxon's Tillerson, total compensation for 2015 fell 18%. The sub-heading of an earlier version of this article misstated the year as 2005. (April 13, 2016)

Credit: By Bradley Olson and Sarah Kent

Subject: Executive compensation; Petroleum industry; Chief executive officers; Prices; Wages & salaries; Energy industry

People: van Beurden, Ben Tillerson, Rex W

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Royal London Asset Management; NAICS: 523930; Name: University of Southern California; NAICS: 611310

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Apr 12, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1780741709

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1780741709?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Mobil CEO Tillerson Was Paid $27.3 Million for 2015; Total pay declines 18% from year earlier as oil giant's profit falls

Author: Stynes, Tess

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Apr 2016: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. said Chief Executive Rex Tillerson's total compensation was $27.3 million for 2015, a decline of 18% from the year earlier as the oil giant's profits were hit by low oil prices.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. said Chief Executive Rex Tillerson's total compensation was $27.3 million for 2015, a decline of 18% from the year earlier as the oil giant's profits were hit by low oil prices.

The smaller pay package mostly reflected a decline in Mr. Tillerson's annual bonus and stock awards. The bonus declined to $2.4 million from $3.7 million a year earlier, while the value of stock awards fell to $18.3 million from $21.4 million. Those declines were slightly offset by an increase in his salary to $3 million from $2.9 million in 2014.

During February the world's largest publicly traded oil company reported that its fourth-quarter profit tumbled 58%, to the lowest level since 2002, as the worst oil crash in decades hampered drilling operations.

The Irving, Texas company also joined BP PLC and Chevron Corp. in reporting losses or sharply lower profits for the fourth-quarter and full-year of 2015.

Write to Tess Stynes at tess.stynes@wsj.com

Credit: By Tess Stynes

Subject: Executive compensation; Petroleum industry; Wages & salaries

Location: Texas

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Apr 13, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1780544173

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1780544173?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Fires Back at Climate-Change Probe; Argues subpoena represents unwarranted fishing expedition into its records that violates its constitutional rights

Author: Harder, Amy; Devlin, Barrett; Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Apr 2016: n/a.

ProQuest document link

Abstract:

Earlier * Calpers Pushes Exxon to Outline Potential Effects of Climate-Change Initiatives (April 12) * Think Tank Calls Subpoena an 'Affront to First Amendment Rights' (April 8) * Church of England and New York State Fund to Press Exxon on Climate Change (Jan. 15) * Carbon-Tax Debate Brings Together Unusual Allies (Nov. 30) * Exxon Gets Subpoena From N.Y. Regarding Climate-Change Research (Nov. 5) In the subpoena, the U.S. Virgin Islands told Exxon it could be violating two state laws, by purportedly obtaining money under false pretenses and conspiring to do so.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. went to court Wednesday to challenge a government investigation of whether the company conspired to cover up its understanding of climate change, a sign the energy company is gearing up for a drawn-out legal battle with environmentalists and officials on the politically charged issue.

The company filed court papers in Texas seeking to block a subpoena issued in March by the attorney general of the U.S. Virgin Islands, one of several government officials pursuing Exxon. Wednesday's filing argues that the subpoena is an unwarranted fishing expedition into Exxon's internal records that violates its constitutional rights.

"The chilling effect of this inquiry, which discriminates based on viewpoint to target one side of an ongoing policy debate, strikes at protected speech at the core of the First Amendment," the filing says.

Exxon also dismisses the notion that there is any suggestion of a crime, saying Attorney General Claude Earl Walker "issued the subpoena without the reasonable suspicion required by law and based on an ulterior motive to silence those who express views on climate change with which they disagree."

A request for comment to the U.S. Virgin Islands' attorney general's office wasn't immediately returned.

Earlier

* Calpers Pushes Exxon to Outline Potential Effects of Climate-Change Initiatives (April 12)

* Think Tank Calls Subpoena an 'Affront to First Amendment Rights' (April 8)

* Church of England and New York State Fund to Press Exxon on Climate Change (Jan. 15)

* Carbon-Tax Debate Brings Together Unusual Allies (Nov. 30)

* Exxon Gets Subpoena From N.Y. Regarding Climate-Change Research (Nov. 5)

In the subpoena, the U.S. Virgin Islands told Exxon it could be violating two state laws, by purportedly obtaining money under false pretenses and conspiring to do so.

Both sides see this as a pivotal moment in a growing campaign by environmentalists to deploy a legal strategy used against tobacco companies in the 1990s by arguing that oil companies have long hidden what they know about climate change. Tobacco firms' finances and credibility were badly damaged by lawsuits accusing them of hiding the truth about their products.

A key meeting in the new push unfolded in January behind closed doors at a Manhattan office building. The session brought together about a dozen people, including Kenny Bruno, a veteran of environmental campaigns, and Bill McKibben, founder of 350.org, two activists who helped lead the successful fight to block the Keystone XL pipeline.

The new campaign's goals include "to establish in public's mind that Exxon is a corrupt institution that has pushed humanity (and all creation) toward climate chaos and grave harm," according to an agenda of the meeting viewed by The Wall Street Journal.

This new legal strategy stems in part from environmentalists' frustration at what they see as the inadequacy of recent climate deals. Their hope is to encourage state attorneys general and the U.S. Justice Department to launch investigations and lawsuits that ultimately will change Exxon's behavior, force it to pay big damages and drive public attention to climate change.

"It's about helping the larger public understand the urgencies of finding climate solutions," said Lee Wasserman, director of the Rockefeller Family Fund, which hosted the January meeting. "It's not really about Exxon."

Exxon and its supporters dismiss the comparison with tobacco. Cigarettes are a harmful, addictive product used by a portion of the public, they say, while fossil fuels are fundamental to the world economy.

In Wednesday's filing, Exxon's lawyers say the company has confirmed for more than a decade that it sees the risks of climate change, and that it has publicly advocated for a carbon tax as the best way to regulate carbon emissions.

A key part of the activists' strategy is to seek documents that show otherwise: that Exxon, despite knowing the dangers of climate change, has sought to challenge the scientific consensus. Such revelations would help "delegitimize [Exxon] as a political actor," the January agenda said.

In a twist, the initiative is set to be bankrolled partly by the heirs of John D. Rockefeller, the founder of Exxon's forebear, Standard Oil. The Rockefeller Family Fund has signaled it will help fund the campaign through its existing backing of 350.org, though it hasn't provided a figure.

Wednesday's filing is Exxon's first legal salvo in what could be a long war, since at least four state attorneys general have launched investigations and a dozen others have signaled they might.

None has been as aggressive as New York Attorney General Eric Schneiderman, who subpoenaed Exxon in November seeking information about the company's research on climate change over several decades. Exxon hasn't challenged that subpoena, partly because a New York law called the Martin Act gives Mr. Schneiderman wide latitude to investigate businesses for possible fraud or misrepresentation.

The new legal theory has yet to gain momentum within the Justice Department, according to officials familiar with internal discussions. But after prodding by lawmakers, the Federal Bureau of Investigation is conducting a preliminary review.

The issue also has seeped into the political arena. Democratic presidential front-runner Hillary Clinton has called for an investigation of Exxon, and Sen. Sheldon Whitehouse (D., R.I.), pressed U.S. Attorney General Loretta Lynch on the matter at a recent congressional hearing.

The activists are focusing on internal Exxon documents that have surfaced in news outlets--including in publications or investigative projects that were funded partly by the Rockefeller Brothers Fund and Rockefeller Family Fund, which favor strong climate action. The media outlets involved--the Los Angeles Times and InsideClimate News--have said the reporting was done without influence by the funding sources.

The activists' biggest challenge may be to establish clear culpability for global warming. Millions of individuals contribute with their use of fossil fuels, while national governments have done little despite knowing the risks, said David Uhlmann, a University of Michigan law professor and former federal environmental crimes prosecutor.

"Exxon should have been far more forthright about the risks associated with climate change, but all of us are culpable for our collective failure to change," Mr. Uhlmann said. "The likelihood that these investigations will lead to significant damages are small."

But Sharon Eubanks, who led the tobacco litigation during the Clinton and Bush administrations and attended the January meeting, said she believes a lawsuit by the government against Exxon is viable under the Racketeer Influenced and Corrupt Organizations Act. RICO allows the government to pursue civil lawsuits against a people or entities working in concert to violate the law.

Write to Amy Harder at amy.harder@wsj.com , Devlin Barrett at devlin.barrett@wsj.com and Bradley Olson at Bradley.Olson@wsj.com

Credit: By Amy Harder, Devlin Barrett and Bradley Olson

Subject: Attorneys general; Climate change; Carbon; Activism; Tobacco; Environmentalists; Subpoenas

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Rockefeller Family Fund; NAICS: 813211; Name: Church of England; NAICS: 813110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Apr 13, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1780578774

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1780578774?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Pay Shrinks for Most Oil CEOs, as Crude's Swoon Hits Stocks; For Exxon's Tillerson, total compensation for 2015 fell 18%, but BP's Dudley got pay bump

Author: Olson, Bradley; Kent, Sarah

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Apr 2016: n/a.

ProQuest document link

Abstract:

In their annual filings, the biggest oil companies take pains to explain the complexities of their senior executives' compensation, including performance pay tied to the company's share price and options that can take as long as a decade to vest.

Links: 360 Link to Full Text

Full text:  

Most--but not all--top oil executives are seeing their pay shrink, after a plunge in crude prices that has erased $200 billion in stock-market value from the world's largest publicly traded energy companies.

Bob Dudley, BP PLC's chief executive, enjoyed about a 20% bump in pay to $19.6 million in 2015, despite his company's $5.2 billion loss for the year and an accompanying stock-price decline of 11%.

Many BP shareholders are incensed by the increase, and investor-advisory firms including Institutional Shareholder Services are counseling them not to ratify Mr. Dudley's pay package at the company's annual meeting Thursday.

"This proposed increase is both unreasonable and insensitive," said Ashley Hamilton Claxton, corporate-governance manager at Royal London Asset Management, which holds BP shares worth about $600 million. She plans to vote against Mr. Dudley's pay.

BP defended the pay package. "Despite the very challenging environment, BP's safety and operating performance was excellent throughout 2015, and management also responded early and decisively to the steep fall in the oil price," a company spokesman said.

Other executive pay packages shrank along with stock prices. Exxon Mobil Corp. released data Wednesday that showed CEO Rex Tillerson's salary rose 6% to $3 million in 2015 even as the company's shares lost 15% of their value. But Mr. Tillerson's total pay fell 18% to $27.3 million, due to a lower bonus, stock awards and interest-rate-related changes in his pension.

For the past five years, oil giants Exxon, Chevron Corp., Royal Dutch Shell PLC and BP have paid their top bosses nearly $500 million in combined compensation, even though the companies' annualized returns for the period have undershot those of the S&P 500.

In 2015, Chevron chief John Watson's pay, including salary, bonus and stock options, rose 3%, but with pension-benefit changes his total compensation fell by 15% to about $22 million.

Most of Mr. Watson's pay rises and falls with shareholder value, based on stock prices, with added emphasis on safety and other factors aligned with good corporate governance, said Kurt Glaubitz, a company spokesman.

"Overall, Mr. Watson's 2015 compensation package recognizes and reflects the value he continues to deliver to Chevron's stockholders," Mr. Glaubitz said.

The salary and bonus of Anglo-Dutch Shell's CEO, Ben van Beurden, who is paid in euros, fell 13% to $5.5 million when translated into dollars.

Mr. van Beurden's overall pay for 2015, including pension changes, tumbled 81%. Shell's profit for the year plunged 80%.

"Shell's executive compensation reflects delivery of our strategy, measured by both short-term and long-term targets," said Jonathan French, a Shell spokesman. "There is a clear alignment between the company's performance and our compensation policies."

Stockholders at Chevron, Exxon and Shell will get to vote on executive pay next month--though the votes aren't binding. At those meetings, the companies are expected to outline their worst first-quarter performances in decades, analysts say.

Including BP, the four biggest Western oil companies have laid off, or are in the process of shedding, more than 25,000 workers because of the protracted downturn in energy prices.

At the two dozen energy companies in the S&P 500 index, median pay, excluding pension changes, fell less than 1% from 2014 last year, according to an analysis by ISS Corporate Solutions Inc. That's far less than the cumulative 24% price decline for those companies. Executive compensation in other industries, except for retailing, increased last year.

In their annual filings, the biggest oil companies take pains to explain the complexities of their senior executives' compensation, including performance pay tied to the company's share price and options that can take as long as a decade to vest. Those incentives are paid out over the long term, but they often get counted as part of annual pay packages.

Compensation packages at many energy companies are built to work well in most market conditions, but some were never set up to manage the impact of a crash in oil-and-gas prices, said John Roe, head of advisory at ISS Corporate Solutions.

"Sometimes, that produces results that don't pass the smell test," he said. "When that happens, companies need to step back and make sure that they are more responsive and aligned with shareholders. When they don't, they will run into issues year after year."

ISS hasn't issued its recommendations on whether shareholders should endorse or reject pay packages at Exxon, Chevron and Shell, but says it will do so in coming weeks.

One reason for discrepancies between executive pay and stock performance is that BP and other oil companies reward executives based on relative shareholder returns. That can blunt the impact of rising or falling oil prices because payouts depend more on how well a company performs relative to its peers, said Kevin Murphy, a professor at the University of Southern California's Marshall School of Business.

Compared with the other three major oil companies, BP shares fell the least in 2015, dropping 11.7% including reinvested dividends, according to data from Morningstar. That is slightly ahead of Exxon's 12.6% share-price decline. Chevron's stock fell 16% last year, while Shell's was down 26%.

Write to Bradley Olson at Bradley.Olson@wsj.com and Sarah Kent at sarah.kent@wsj.com

Corrections & Amplifications

For Exxon's Tillerson, total compensation for 2015 fell 18%. The sub-heading of an earlier version of this article misstated the year as 2005. (April 14, 2016)

Credit: By Bradley Olson and Sarah Kent

Subject: Executive compensation; Petroleum industry; Chief executive officers; Prices; Wages & salaries; Energy industry

People: van Beurden, Ben Tillerson, Rex W

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Royal London Asset Management; NAICS: 523930; Name: University of Southern California; NAICS: 611310

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Apr 13, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1781023618

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1781023618?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Pay Shrinks for Most Oil CEOs, as Crude's Swoon Hits Stocks; For Exxon's Tillerson, total compensation for 2005 fell 18%, but BP's Dudley got pay bump

Author: Olson, Bradley; Kent, Sarah

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Apr 2016: n/a.

ProQuest document link

Abstract:

In their annual filings, the biggest oil companies take pains to explain the complexities of their senior executives' compensation, including performance pay tied to the company's share price and options that can take as long as a decade to vest.

Links: 360 Link to Full Text

Full text:  

Most--but not all--top oil executives are seeing their pay shrink, after a plunge in crude prices that has erased $200 billion in stock-market value from the world's largest publicly traded energy companies.

Bob Dudley, BP PLC's chief executive, enjoyed about a 20% bump in pay to $19.6 million in 2015, despite his company's $5.2 billion loss for the year and an accompanying stock-price decline of 11%.

Many BP shareholders are incensed by the increase, and investor-advisory firms including Institutional Shareholder Services are counseling them not to ratify Mr. Dudley's pay package at the company's annual meeting Thursday.

"This proposed increase is both unreasonable and insensitive," said Ashley Hamilton Claxton, corporate-governance manager at Royal London Asset Management, which holds BP shares worth about $600 million. She plans to vote against Mr. Dudley's pay.

BP defended the pay package. "Despite the very challenging environment, BP's safety and operating performance was excellent throughout 2015, and management also responded early and decisively to the steep fall in the oil price," a company spokesman said.

Other executive pay packages shrank along with stock prices. Exxon Mobil Corp. released data Wednesday that showed CEO Rex Tillerson's salary rose 6% to $3 million in 2015 even as the company's shares lost 15% of their value. But Mr. Tillerson's total pay fell 18% to $27.3 million, due to a lower bonus, stock awards and interest-rate-related changes in his pension.

For the past five years, oil giants Exxon, Chevron Corp., Royal Dutch Shell PLC and BP have paid their top bosses nearly $500 million in combined compensation, even though the companies' annualized returns for the period have undershot those of the S&P 500.

In 2015, Chevron chief John Watson's pay, including salary, bonus and stock options, rose 3%, but with pension-benefit changes his total compensation fell by 15% to about $22 million.

Most of Mr. Watson's pay rises and falls with shareholder value, based on stock prices, with added emphasis on safety and other factors aligned with good corporate governance, said Kurt Glaubitz, a company spokesman.

"Overall, Mr. Watson's 2015 compensation package recognizes and reflects the value he continues to deliver to Chevron's stockholders," Mr. Glaubitz said.

The salary and bonus of Anglo-Dutch Shell's CEO, Ben van Beurden, who is paid in euros, fell 13% to $5.5 million when translated into dollars.

Mr. van Beurden's overall pay for 2015, including pension changes, tumbled 81%. Shell's profit for the year plunged 80%.

"Shell's executive compensation reflects delivery of our strategy, measured by both short-term and long-term targets," said Jonathan French, a Shell spokesman. "There is a clear alignment between the company's performance and our compensation policies."

Stockholders at Chevron, Exxon and Shell will get to vote on executive pay next month--though the votes aren't binding. At those meetings, the companies are expected to outline their worst first-quarter performances in decades, analysts say.

Including BP, the four biggest Western oil companies have laid off, or are in the process of shedding, more than 25,000 workers because of the protracted downturn in energy prices.

At the two dozen energy companies in the S&P 500 index, median pay, excluding pension changes, fell less than 1% from 2014 last year, according to an analysis by ISS Corporate Solutions Inc. That's far less than the cumulative 24% price decline for those companies. Executive compensation in other industries, except for retailing, increased last year.

In their annual filings, the biggest oil companies take pains to explain the complexities of their senior executives' compensation, including performance pay tied to the company's share price and options that can take as long as a decade to vest. Those incentives are paid out over the long term, but they often get counted as part of annual pay packages.

Compensation packages at many energy companies are built to work well in most market conditions, but some were never set up to manage the impact of a crash in oil-and-gas prices, said John Roe, head of advisory at ISS Corporate Solutions.

"Sometimes, that produces results that don't pass the smell test," he said. "When that happens, companies need to step back and make sure that they are more responsive and aligned with shareholders. When they don't, they will run into issues year after year."

ISS hasn't issued its recommendations on whether shareholders should endorse or reject pay packages at Exxon, Chevron and Shell, but says it will do so in coming weeks.

One reason for discrepancies between executive pay and stock performance is that BP and other oil companies reward executives based on relative shareholder returns. That can blunt the impact of rising or falling oil prices because payouts depend more on how well a company performs relative to its peers, said Kevin Murphy, a professor at the University of Southern California's Marshall School of Business.

Compared with the other three major oil companies, BP shares fell the least in 2015, dropping 11.7% including reinvested dividends, according to data from Morningstar. That is slightly ahead of Exxon's 12.6% share-price decline. Chevron's stock fell 16% last year, while Shell's was down 26%.

Write to Bradley Olson at Bradley.Olson@wsj.com and Sarah Kent at sarah.kent@wsj.com

Credit: By Bradley Olson and Sarah Kent

Subject: Executive compensation; Petroleum industry; Chief executive officers; Prices; Wages & salaries; Energy industry

People: van Beurden, Ben Tillerson, Rex W

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Royal London Asset Management; NAICS: 523930; Name: University of Southern California; NAICS: 611310

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Apr 14, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1780690033

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1780690033?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Business News: Exxon Fires Back in Court Over U.S.'s Climate Probe

Author: Harder, Amy; Devlin, Barrett; Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]14 Apr 2016: B.2.

ProQuest document link

Abstract:

Exxon Mobil Corp. went to court Wednesday to challenge a government investigation of whether the company conspired to cover up its understanding of climate change, a sign the energy company is gearing up for a drawn-out legal battle with environmentalists and officials on the politically charged issue.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. went to court Wednesday to challenge a government investigation of whether the company conspired to cover up its understanding of climate change, a sign the energy company is gearing up for a drawn-out legal battle with environmentalists and officials on the politically charged issue.

The company filed court papers in Texas seeking to block a subpoena issued in March by the attorney general of the U.S. Virgin Islands, one of several government officials pursuing Exxon. Wednesday's filing argues that the subpoena is an unwarranted fishing expedition into Exxon's internal records that violates its constitutional rights.

"The chilling effect of this inquiry, which discriminates based on viewpoint to target one side of an ongoing policy debate, strikes at protected speech at the core of the First Amendment," the filing says.

Exxon also dismisses the notion that there is any suggestion of a crime, saying Attorney General Claude Earl Walker "issued the subpoena without the reasonable suspicion required by law and based on an ulterior motive to silence those who express views on climate change with which they disagree."

A request for comment to the U.S. Virgin Islands' attorney general's office wasn't immediately returned.

In the subpoena, the U.S. Virgin Islands told Exxon it could be violating two state laws, by purportedly obtaining money under false pretenses and conspiring to do so.

Both sides see this as a pivotal moment in a growing campaign by environmentalists to deploy a legal strategy used against tobacco companies in the 1990s by arguing that oil companies have long hidden what they know about climate change. Tobacco firms' finances and credibility were badly damaged by lawsuits accusing them of hiding the truth about their products.

A key meeting in the new push unfolded in January behind closed doors at a Manhattan office building. The session brought together about a dozen people, including Kenny Bruno, a veteran of environmental campaigns, and Bill McKibben, founder of 350.org, two activists who helped lead the successful fight to block the Keystone XL pipeline.

The new campaign's goals include "to establish in public's mind that Exxon is a corrupt institution that has pushed humanity (and all creation) toward climate chaos and grave harm," according to an agenda of the meeting viewed by The Wall Street Journal.

This new legal strategy stems in part from environmentalists' frustration at what they see as the inadequacy of recent climate deals. Their hope is to encourage state attorneys general and the U.S. Justice Department to launch investigations and lawsuits that ultimately will change Exxon's behavior, force it to pay big damages and drive public attention to climate change.

"It's about helping the larger public understand the urgencies of finding climate solutions," said Lee Wasserman, director of the Rockefeller Family Fund, which hosted the January meeting. "It's not really about Exxon."

Exxon and its supporters dismiss the comparison with tobacco. Cigarettes are a harmful, addictive product used by a portion of the public, they say, while fossil fuels are fundamental to the world economy.

In Wednesday's filing, Exxon's lawyers say the company has confirmed for more than a decade that it sees the risks of climate change, and has publicly advocated for a carbon tax as the best way to regulate carbon emissions.

A key part of the activists' strategy is to seek documents that show otherwise: that Exxon, despite knowing the dangers of climate change, has sought to challenge the scientific consensus. Such revelations would help "delegitimize [Exxon] as a political actor," the January agenda said.

In a twist, the initiative is set to be bankrolled partly by the heirs of John D. Rockefeller, the founder of Exxon's forebear, Standard Oil. The Rockefeller Family Fund has signaled it will help fund the campaign through its existing backing of 350.org, though it hasn't provided a figure.

Wednesday's filing is Exxon's first legal salvo in what could be a long war, since at least four state attorneys general have launched investigations and a dozen others have signaled they might.

None has been as aggressive as New York Attorney General Eric Schneiderman, who subpoenaed Exxon in November seeking data about the company's research on climate change over several decades. Exxon hasn't challenged that subpoena, partly because a New York law called the Martin Act gives Mr. Schneiderman wide latitude to investigate businesses for possible fraud or misrepresentation.

The new legal theory has yet to gain momentum within the Justice Department, according to officials familiar with internal discussions. But after prodding by lawmakers, the Federal Bureau of Investigation is conducting a preliminary review.

The issue also has seeped into the political arena. Democratic presidential front-runner Hillary Clinton has called for an investigation of Exxon, and Sen. Sheldon Whitehouse (D., R.I.), pressed U.S. Attorney General Loretta Lynch on the matter at a recent congressional hearing.

The activists are focusing on Exxon documents that have surfaced in news outlets -- including in publications or investigative projects that were funded partly by the Rockefeller Brothers Fund and Rockefeller Family Fund, which favor strong climate action. The media outlets involved -- the Los Angeles Times and InsideClimate News -- have said the reporting was done without influence by the funding sources.

The activists' biggest challenge may be to establish clear culpability for global warming. Millions of individuals contribute with their use of fossil fuels, while national governments have done little despite knowing the risks, said David Uhlmann, a University of Michigan law professor and former federal environmental crimes prosecutor.

"Exxon should have been far more forthright about the risks associated with climate change, but all of us are culpable for our collective failure to change," Mr. Uhlmann said. "The likelihood that these investigations will lead to significant damages are small."

But Sharon Eubanks, who led the tobacco litigation during the Clinton and Bush administrations and attended the January meeting, said she believes a lawsuit by the government against Exxon is viable under the Racketeer Influenced and Corrupt Organizations Act. RICO allows the government to pursue civil lawsuits against a people or entities working in concert to violate the law.

Credit: By Amy Harder, Devlin Barrett and Bradley Olson

Subject: Attorneys general; Environmentalists; Subpoenas; Litigation; Climate change

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 1540: Pollution control; 8510: Petroleum industry; 9190: United States; 4330: Litigation

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.2

Publication year: 2016

Publication date: Apr 14, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1780734514

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Former Exxon CEO Clifton Garvin Dies; Engineer preferred to focus on running company rather than being its public face

Author: Hagerty, James R

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Apr 2016: n/a.

ProQuest document link

Abstract:

In 1981, he told reporters that rising long-term demand for energy meant the U.S. probably would need to rely more heavily on nuclear power and develop synthetic fuels, perhaps with government subsidies.

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Clifton C. Garvin Jr., a publicity-shy engineer who headed Exxon Corp. amid tumultuous oil-price swings in the 1970s and early 1980s, has died, a family representative said.

Mr. Garvin, who had been ill for more than a year, died Sunday at a nursing home in Easton, Md. He was 94.

He served as chairman and chief executive of the company, now known as Exxon Mobil Corp., from 1975 to December 1986, when he retired. His time in the upper ranks of Exxon coincided with nationalizations of oil fields overseas, surging oil prices and gasoline shortages in the 1970s, and a collapse of prices in the 1980s as new fields created a glut.

Widespread belief that the world was rapidly running out of oil stirred talk of an "energy crisis" in the 1970s. That thrust formerly obscure oil executives like Mr. Garvin into a more public role.

A poor speaker, "he was very ill-at-ease" with that new role, said Rudy Schmidt, a son-in-law to Mr. Garvin. "He suffered fools very poorly" and preferred to focus on running the company rather than being its public face.

Nonetheless, Mr. Garvin felt compelled to appear on television and radio programs in the 1970s to explain to the public why gasoline prices were so high and what could be done about it. Many Americans were furious at oil companies.

"It got so bad...that I had to go to an unlisted phone number," he told the New York Times in a 1980 interview. "I got all kinds of phone calls at home that were just terrible."

In 1981, he told reporters that rising long-term demand for energy meant the U.S. probably would need to rely more heavily on nuclear power and develop synthetic fuels, perhaps with government subsidies.

Worried that oil was a shrinking industry, Exxon blundered through a diversification into electronic office equipment. In the early 1980s, it made Qwip fax machines and Qyx electronic typewriters and hoped to challenge International Business Machines. Exxon's office products ran into quality problems, however, and Exxon pulled the plug on that business in the mid-1980s.

Clifton Canter Garvin Jr. was born on Dec. 22, 1921, in Portsmouth, Va. His father was a district manager for Safeway grocery stores. The younger Mr. Garvin earned a master's degree in chemical engineering from Virginia Polytechnic Institute and State University. During World War II, he served with the U.S. Army in the South Pacific.

He joined Exxon in 1947 at its Baton Rouge refinery. Early in his career, he allowed a professor of ornithology to place students on oil platforms in the Gulf of Mexico to monitor movements of hummingbirds. That episode enhanced his lifelong passion for bird watching, which he pursued around the world during his retirement.

He is survived by his wife, Thelma; four children, 10 grandchildren and 13 great-grandchildren.

Write to James R. Hagerty at bob.hagerty@wsj.com

Credit: By James R. Hagerty

Subject: Gasoline prices; Shortages

Company / organization: Name: New York Times Co; NAICS: 511110, 511120, 515112, 515120; Name: Army-US; NAICS: 928110; Name: Virginia Polytechnic Institute & State University; NAICS: 611310

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Apr 21, 2016

Section: World

Publisher: Dow Jones & Company Inc

Place of publication: New Y ork, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1783140345

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Runs Low on Fuel

Author: Kingsbury, Kevin

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Apr 2016: n/a.

ProQuest document link

Abstract:

If things end up being even worse than Wall Street predicts, keep in mind that Exxon last reported less than $1 billion of earnings in the second quarter of 1994; they came in at $885 million. $1.29 billion The amount analysts expect Exxon Mobil Corp. to log in first-quarter earnings, which would be its lowest quarterly profit since the merger of Exxon Corp. and Mobil Corp. in 1999 Credit: By Kevin Kingsbury

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How the mighty oil giants have fallen.

Exxon Mobil Corp. generated plenty of headlines earlier this decade when it was posting quarterly profits in excess of $10 billion. But those records are a distant memory in the wake of oil's price tumble.

Exxon, the industry's biggest publicly traded company, on Friday is projected to post its smallest quarterly earnings this century.

Analysts expect Exxon to report first-quarter net income of $1.29 billion, according to consensus analyst estimates from Thomson Reuters. Exxon hasn't logged a sub-$2 billion profit since the third quarter of 1999, when it posted $1.5 billion. That November, Exxon's merger with Mobil was completed.

The first quarter should be Exxon's earnings trough, according to analysts' projections. Oil prices have rebounded sharply from this winter's 13-year low. Of course, many on Wall Street predicted that the first half of 2015 would be the earnings trough for energy companies as well.

If things end up being even worse than Wall Street predicts, keep in mind that Exxon last reported less than $1 billion of earnings in the second quarter of 1994; they came in at $885 million.

$1.29 billion

The amount analysts expect Exxon Mobil Corp. to log in first-quarter earnings, which would be its lowest quarterly profit since the merger of Exxon Corp. and Mobil Corp. in 1999

Credit: By Kevin Kingsbury

Subject: Profits; Earnings; Financial performance

Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Apr 24, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1783849190

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1783849190?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Moving the Market -- MoneyBeat: Exxon Runs Low on Fuel

Author: Kingsbury, Kevin

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]25 Apr 2016: C.2.

ProQuest document link

Abstract:

Analysts expect Exxon to report first-quarter net income of $1.29 billion, according to consensus analyst estimates from Thomson Reuters.

Links: 360 Link to Full Text

Full text:  

How the mighty oil giants have fallen.

Exxon Mobil Corp. generated plenty of headlines earlier this decade when it was posting quarterly profits in excess of $10 billion. But those records are a distant memory in the wake of oil's price tumble.

Exxon, the industry's biggest publicly traded company, on Friday is projected to post its smallest quarterly earnings this century.

Analysts expect Exxon to report first-quarter net income of $1.29 billion, according to consensus analyst estimates from Thomson Reuters. Exxon hasn't logged a sub-$2 billion profit since the third quarter of 1999, when it posted $1.5 billion. That November, Exxon's merger with Mobil was completed.

The first quarter should be Exxon's earnings trough, according to analysts' projections. Oil prices have rebounded sharply from this winter's 13-year low. Of course, many on Wall Street predicted that the first half of 2015 would be the earnings trough for energy companies as well.

If things end up being even worse than Wall Street predicts, keep in mind that Exxon last reported less than $1 billion of earnings in the second quarter of 1994; they came in at $885 million.

Credit: By Kevin Kingsbury

Subject: Financial performance; Earnings forecasting

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: C.2

Publication year: 2016

Publication date: Apr 25, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1783848462

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

S&P Strips Exxon of Triple-A Credit Rating; Exxon was one of very few American companies that had retained the top ranking

Author: Ailworth, Erin; Hufford, Austen

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 Apr 2016: n/a.

ProQuest document link

Abstract:

Related * MoneyBeat: A Record Triple-A Run * Overheard: Exxon Has Its Priorities * MoneyBeat: Exxon Held Rating for Nearly 50 Years * Exxon Offers $12 Billion Bond Issue (Feb. 29) * S&P Cuts Ratings of 10 U.S. Oil Companies (Feb 2) But the company's willingness to go into debt to fund its capital spending and keep paying out dividends even as oil prices plunged from highs of over $100 a barrel to as low as $26 has taken a toll on its balance sheet .

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Exxon Mobil Corp. was stripped Tuesday of the perfect triple-A credit rating it has held for more than six decades by Standard & Poor's Ratings Services, a sign that the oil bust is hurting even the strongest players in the energy industry.

The world's largest publicly traded oil company, Exxon, was just one of three American companies--Microsoft Corp. and Johnson & Johnson are the others--that had the triple-A rating. S&P said it first gave the company the triple-A mark in 1949. A representative for Exxon said it had been triple-A since 1930, counting its predecessor companies.

Related

* MoneyBeat: A Record Triple-A Run

* Overheard: Exxon Has Its Priorities

* MoneyBeat: Exxon Held Rating for Nearly 50 Years

* Exxon Offers $12 Billion Bond Issue (Feb. 29)

* S&P Cuts Ratings of 10 U.S. Oil Companies (Feb 2)

But the company's willingness to go into debt to fund its capital spending and keep paying out dividends even as oil prices plunged from highs of over $100 a barrel to as low as $26 has taken a toll on its balance sheet . Its total debt, which stood at $38.7 billion at the end of last year, has more than tripled since 2012, according to S&P Global Market Intelligence.

"Nothing has changed in terms of the company's financial philosophy or prudent management of its balance sheet," Exxon spokesman Scott Silvestri said Tuesday.

In downgrading Exxon by one notch to double-A-plus, S&P cited the company's rising debt level and said dividend payments and share repurchases "substantially exceeded" internally generated cash flow.

U.S. government debt itself is ranked at double-A-plus.

Earlier this year, Exxon sold $12 billion of new bonds in one of the biggest corporate-debt deals of the year. S&P said it expects Exxon to return cash to shareholders instead of reducing its debt.

"Other AAAs have no debt or almost no debt and a lot of cash," said Ben Tsocanos, an analyst for the ratings agency, in a February interview. "Exxon is the only AAA company in a capital intensive industry. That should be kept in mind."

The ratings downgrade isn't expected to affect Exxon's ability to borrow money. But the triple-A rating status--which Exxon managed to maintain in one form or another through the Great Depression, World War II, Arab oil embargo and several previous price crashes--had long been a point of pride for the Irving, Texas company.

Exxon Chief Executive Rex Tillerson said during an interview with CNBC in March that he'd be disappointed if it lost the triple-A rating. "You know, over 90 years of being AAA, this is not the first time we've been through a period of this pretty extreme stress on the financial-model of the company," he said. "I hope we can maintain the rating 'cause it's important to us reputationally."

Investors rely on ratings from S&P, Moody's Investors Service and Fitch Ratings when deciding whether to buy bonds.

In February, S&P cut the ratings of 10 U.S. oil and gas exploration and production companies , citing the price decline. It also placed Exxon on watch for a possible downgrade, which was resolved with Tuesday's release. S&P said Exxon's outlook is stable.

Also in February, Moody's Investors Service affirmed its triple-A rating for Exxon but placed the company on a negative outlook, saying it feared a diminished level of capital reinvestment could hurt Exxon's ability to replace reserves and hurt production in future years. It stood by that rating and outlook in an April 1 credit opinion.

Peter Speer, an analyst with Moody's, said Exxon's problem is that it is completing complex, large-scale, expensive projects that don't work in the current low-price environment.

"There will be higher prices in the future, but not returning anywhere to the prices we saw a few years ago," Mr. Speer said.

Energy companies have suffered from a prolonged decline in oil and natural gas prices, with many severely cutting planned capital expenditures .

The financial ratings industry has been under criticism in recent years stemming from the high-marks given to mortgage-backed securities, whose failure later caused the financial crisis. In Feb. 2015, S&P agreed to pay $1.5 billion to resolve litigation alleging it knowingly issued rosy grades of risky mortgage bonds before the crisis.

Bradley Olson contributed to this article.

Write to Erin Ailworth at Erin.Ailworth@wsj.com and Austen Hufford at austen.hufford@wsj.com

Credit: By Erin Ailworth and Austen Hufford

Subject: Ratings & rankings; Bond issues; International finance; Securitization; Balance sheets; Investments; Capital expenditures; Energy industry

Location: United States--US

People: Tillerson, Rex W

Company / organization: Name: Microsoft Corp; NAICS: 511210, 334614; Name: Moodys Investors Service Inc; NAICS: 522110, 523930, 561450; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Standard & Poors Corp; NAICS: 541519, 511120, 523999, 561450; Name: Johnson & Johnson; NAICS: 339113, 339115, 325412, 325611, 325620

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Apr 26, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1784193030

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Business News: Exxon Loses Its Triple-A Rating

Author: Ailworth, Erin; Hufford, Austen

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]27 Apr 2016: B.2.

ProQuest document link

Abstract:

Exxon Mobil Corp. was stripped Tuesday of the perfect triple-A credit rating it has held for more than six decades by Standard & Poor's Ratings Services, a sign that the oil bust is hurting even the strongest players in the energy industry.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. was stripped Tuesday of the perfect triple-A credit rating it has held for more than six decades by Standard & Poor's Ratings Services, a sign that the oil bust is hurting even the strongest players in the energy industry.

The world's largest publicly traded oil company, Exxon, was just one of three American companies -- Microsoft Corp. and Johnson & Johnson are the others -- that had the triple-A rating. S&P said it first gave the company the triple-A mark in 1949. A representative for Exxon said it had been triple-A since 1930, counting its predecessor companies.

But the company's willingness to go into debt to fund its capital spending and keep paying out dividends even as oil prices plunged from highs of over $100 a barrel to as low as $26 has taken a toll on its balance sheet. Its total debt, which stood at $38.7 billion at the end of last year, has more than tripled since 2012, according to S&P Global Market Intelligence.

"Nothing has changed in terms of the company's financial philosophy or prudent management of its balance sheet," Exxon spokesman Scott Silvestri said Tuesday.

In downgrading Exxon by one notch to double-A-plus, S&P cited the company's rising debt level and said dividend payments and share repurchases "substantially exceeded" internally generated cash flow.

U.S. government debt itself is ranked at double-A-plus.

Earlier this year, Exxon sold $12 billion of new bonds in one of the biggest corporate-debt deals of the year. S&P said it expects Exxon to return cash to shareholders instead of reducing its debt.

The ratings downgrade isn't expected to affect Exxon's ability to borrow money. But the triple-A rating status had long been a point of pride for the Irving, Texas, company.

Credit: By Erin Ailworth and Austen Hufford

Subject: International finance; Credit ratings

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 8510: Petroleum industry; 3100: Capital & debt management; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.2

Publication year: 2016

Publication date: Apr 27, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1784402765

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Mobil Boosts Its Dividend Slightly; Increase is the smallest percentage rise in the 34 consecutive years company has boosted its quarterly payout

Author: Stynes, Tess

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Apr 2016: n/a.

ProQuest document link

Abstract:

At the March analysts' meeting, Exxon Chairman and Chief Executive Rex W. Tillerson said the company's dividend payments "are made with a view to building sustainable, long-term shareholder value and providing reliable dividend growth."

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Full text:  

Exxon Mobil Corp. raised its dividend by 2.7% on Wednesday, the smallest percentage increase in the 34 straight years the company has boosted its quarterly payout.

The move comes a day after Standard & Poor's Ratings Services stripped the global oil giant of its pristine triple-A-credit rating.

Exxon's dividend increase comes as many energy companies have been cutting dividends and reining in spending to improve their finances.

On Wednesday, Exxon said it now has boosted the dividend for 34 consecutive years. The next-smallest increase, 3.8%, was in 1997, according to data from FactSet.

Exxon Mobil boosted its dividend 5.8% a year ago. Wednesday's increase was also below the average 10% annual increase over the past 10 years that the company cited at its analysts' meeting in March.

S&P had cited Exxon's "large dividend payments" among the reasons the credit-ratings company thinks Exxon's credit measures would be below the rating firm's expectations for a triple-A-rating through 2018. S&P also noted low commodities prices that have been impacting the industry.

Exxon's board declared a quarterly dividend of 75 cents a share on Wednesday, an increase of 2 cents a share, to yield 3.4%. The dividend is payable to shareholders of record as of May 13.

"Nothing has changed in terms of the company's financial philosophy or prudent management of its balance sheet," Exxon spokesman Scott Silvestri said on Tuesday following the ratings downgrade.

At the March analysts' meeting, Exxon Chairman and Chief Executive Rex W. Tillerson said the company's dividend payments "are made with a view to building sustainable, long-term shareholder value and providing reliable dividend growth."

Shares of the company closed Wednesday at $88.46, up 1%.

Write to Tess Stynes at tess.stynes@wsj.com

Credit: By Tess Stynes

Subject: Dividends; Financial performance; Ratings & rankings

People: Tillerson, Rex W

Company / organization: Name: Standard & Poors Corp; NAICS: 541519, 511120, 523999, 561450

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Apr 27, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1784613039

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permissi on.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Mobil Still Has Fuel in the Tank; Despite losing its coveted triple-A rating, there is still a lot to like about oil-and-gas giant Exxon Mobil ahead of Friday's earnings report

Author: Russolillo, Steven

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Apr 2016: n/a.

ProQuest document link

Abstract:

If crude oil's steep selloff has taught anything, it is that no energy company is immune from it--not even industry stalwart Exxon Mobil Corp. The energy giant lost a badge of honor on Tuesday when it was stripped of its coveted triple-A credit rating .

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If crude oil's steep selloff has taught anything, it is that no energy company is immune from it--not even industry stalwart Exxon Mobil Corp.

The energy giant lost a badge of honor on Tuesday when it was stripped of its coveted triple-A credit rating . Standard & Poor's cited concerns about Exxon increasing its borrowing to keep up with its capital-return program.

But Exxon marches to the beat of its own drummer, announcing a day later that it would boost its quarterly dividend by 3%. Typically a footnote, the timing of the announcement was poignant.

For one, it maintains Exxon's status in the S&P 500 dividend aristocrats --the select companies that have raised dividends every year for the past 25 years. And in an environment where energy companies are battening down the hatches, a boosted dividend holds that much more cachet.

Exxon's first-quarter results, due Friday, should show its confidence doesn't stem from a financial turnaround just yet. Analysts polled by FactSet expect net income of $1.29 billion, down 74% from a year earlier. Exxon hasn't logged a quarterly profit below $2 billion since 1999, right before its merger with Mobil was completed.

That has forced a lot of belt-tightening, but not as much as one might expect. Exxon plans to cut capital expenditures by 25% this year and put buybacks on hold. That is a sharp shift in strategy considering it spent more on buybacks than dividends from 2004 through 2014. Just this century it has reduced its share count by around 40%. But it has cut investment less sharply than it could have, a hallmark of Exxon's consistency across good and bad cycles .

The brutality of the current market has prompted Exxon's debt to more than triple since 2012--a factor spurring the downgrade. Of course AA+ is nothing to sneeze at, particularly if oil prices have actually bottomed. The first quarter could mark Exxon's earnings trough.

Investors seem to approve of the way Exxon has handled the washout. Exxon has outperformed all of its integrated peers handsomely over the past year, including Chevron Corp., which also reports on Friday.

This tiger still has more room to run.

Write to Steven Russolillo at steven.russolillo@wsj.com

Credit: By Steven Russolillo

Subject: Financial performance; Capital expenditures; Energy industry

Company / organization: Name: Standard & Poors Corp; NAICS: 541519, 511120, 523999, 561450; Name: Chevron Corp; NAICS: 324110, 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Apr 28, 2016

column: Ahead of the Tape

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1784874041

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1784874041?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Still Has Fuel in Its Tank

Author: Russolillo, Steven

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]29 Apr 2016: C.1.

ProQuest document link

Abstract:

If crude oil's steep selloff has taught anything, it is that no energy company is immune from it -- not even industry stalwart Exxon Mobil Corp. The energy giant lost a badge of honor Tuesday when it was stripped of its triple-A credit rating.

Links: 360 Link to Full Text

Full text:  

If crude oil's steep selloff has taught anything, it is that no energy company is immune from it -- not even industry stalwart Exxon Mobil Corp. The energy giant lost a badge of honor Tuesday when it was stripped of its triple-A credit rating.

Standard & Poor's cited concerns about Exxon lifting its borrowing to keep up with its capital-return program.

But Exxon marches to the beat of its own drummer, announcing a day later that it would boost its quarterly dividend by 3%. Typically a footnote, the timing of the announcement was poignant.

For one, it maintains Exxon's status in the S&P 500 dividend aristocrats: the select companies that have raised dividends every year for the past 25 years. And in an environment where energy companies are battening down the hatches, a boosted dividend holds that much more cachet.

Exxon's first-quarter results, due Friday, should show its confidence doesn't stem from a financial turnaround just yet. Analysts polled by FactSet expect net income of $1.29 billion, down 74% from a year earlier. Exxon hasn't logged a quarterly profit below $2 billion since 1999, right before its merger with Mobil was completed.

That has forced a lot of belt-tightening, but not as much as one might expect. Exxon plans to cut capital expenditures by 25% this year and put buybacks on hold. That is a sharp shift in strategy considering it spent more on buybacks than dividends from 2004 through 2014. Just this century it has reduced its share count by around 40%. But it has cut investment less sharply than it could have.

The brutality of the current market has prompted Exxon's debt to more than triple since 2012 -- a factor spurring the downgrade. Of course double-A-plus is nothing to sneeze at, particularly if oil prices have actually bottomed. The first quarter could mark Exxon's earnings trough.

Investors seem to approve of the way Exxon has handled the washout. Exxon has outperformed all of its integrated peers handsomely over the past year, including Chevron Corp., which also reports on Friday.

This tiger still has more room to run.

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Credit: By Steven Russolillo

Subject: Credit ratings; Petroleum industry

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Classification: 8510: Petroleum industry; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: C.1

Publication year: 2016

Publication date: Apr 29, 2016

column: Ahead of the Tape

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1785139339

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1785139339?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohib ited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Mobil's Profit Plunges 63%; Despite sharp declines in revenue and earnings, oil company's results still top views

Author: Olson, Bradley; Steele, Anne

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Apr 2016: n/a.

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Abstract:

Related Reading * Chevron Reports Wider-Than-Expected Loss * Exxon Mobil Still Has Fuel in the Tank * Oil Companies Begin to Benefit From Cost Cuts * Heard on the Street: Big Oil, Big Mistake Irving, Texas-based Exxon reported a profit of $1.81 billion, or 43 cents a share, down from $4.94 billion, or $1.17 a share, a year earlier.

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Exxon Mobil Corp., the world's largest publicly traded oil company, saw its profit plunge 63% to the lowest level since 1999, a year when it nearly doubled in size by acquiring rival Mobil in an $80 billion deal.

The sharp decline came amid a loss from its business producing oil and natural gas, one that largely came from flagging operations in U.S. shale basins. Profits from refining oil into products such as gasoline and diesel, an area that had helped the company weather the blow of lower prices in the past 18 months, also fell by almost half.

Investors shrugged off the declines, reflecting optimism stemming from a recent rally in crude prices as the company beat analyst expectations. Shares of Exxon edged up 0.3% in premarket trading to $88.25 and are up more than 10% this year.

"The market is already looking past these results since oil is up almost 80% from earlier lows," said Brian Youngberg, an energy analyst with Edward Jones. "The expectation was that earnings were going to be really bad for the entire sector, but many companies did better."

Chevron Corp., the second-largest U.S. oil company after Exxon, reported a loss of $725 million , was wider than analysts expected. Shares initially fell 1.6% in premarket trading to $100.74 after the San Ramon, Calif.-based company reported its second-straight quarterly loss.

Related Reading

* Chevron Reports Wider-Than-Expected Loss

* Exxon Mobil Still Has Fuel in the Tank

* Oil Companies Begin to Benefit From Cost Cuts

* Heard on the Street: Big Oil, Big Mistake

Irving, Texas-based Exxon reported a profit of $1.81 billion, or 43 cents a share, down from $4.94 billion, or $1.17 a share, a year earlier. Analysts polled by Thomson Reuters expected a per-share profit of 31 cents. Revenue dropped 28% to $48.71 billion. Analysts had forecast revenue declining to $48.14 billion.

Profit in the exploration and production, or upstream, business swung to a $76 million loss. In the U.S., the upstream division widened its loss to $832 million from $52 million a year earlier.

Exxon also was hurt by declining profit in the downstream division, which had previously been a boon amid lower prices for oil and gas.

In the latest quarter, refining and marketing earnings, or downstream, plunged 46% to $906 million. Exxon said weaker margins decreased earnings by $860 million while volume and mix effects increased earnings by $10 million.

Exxon said it cut its capital spending by 33% from the prior year to $5.13 billion.

Exxon has moved to conserve cash as oil and gas prices languish at their lowest levels in more than a decade.

Oil companies around the world have been battered by a price crash that has left crude and natural gas stubbornly low. Producing countries such as Saudi Arabia and major international oil companies like Chevron have all continued to pump more fuel in the face of the crisis--a standoff that shows no signs of abating.

Write to Bradley Olson at Bradley.Olson@wsj.com and Anne Steele at Anne.Steele@wsj.com

Credit: By Bradley Olson and Anne Steele

Subject: Corporate profits; Prices; Losses; Natural gas; Financial performance

Location: United States--US

Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140; Name: Chevron Corp; NAICS: 324110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Apr 29, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1785222745

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Big Oil, Big Mistake: Investors Overpay for Income at Exxon; Share prices defy gravity despite big slump in quarterly results

Author: Jakab, Spencer

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Apr 2016: n/a.

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Abstract:

[...]this happened alongside: record global inventories, a recently failed production freeze by major exporters, a Federal Reserve in tightening mode and a slowdown in emerging-market economies. Several relatively dowdy companies look pricey on that basis, too, with supermarket chain Kroger, cereal-maker Kellogg, household-goods maker Colgate-Palmolive, fast-food chain McDonald's and pharmaceutical giant Pfizer fetching a 30% premium on average to their multiples from 2010 through 2015.

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What's the big deal about big oil?

If a time traveler had shown Friday's first-quarter results for Exxon Mobil and Chevron to an investor a year ago, that person would have had a tough time guessing their share prices today.

Exxon's results beat expectations , but it posted its worst quarterly earnings this century. Chevron's loss was its worst in 15 years. And this happened alongside: record global inventories, a recently failed production freeze by major exporters, a Federal Reserve in tightening mode and a slowdown in emerging-market economies. So share price predictions for Exxon and Chevron would have been pretty grim.

But no--their stocks are doing fine. And that may not have so much to do with the price of oil. The attraction appears to be stability, and extraordinarily consistent Exxon wins the beauty contest in that regard. Not only has it outperformed its peers by an average of nearly 14 percentage points over the past year in total shareholder return, but it has edged out the S&P 500 by over five points.

Yes, both companies have suffered debt-rating downgrades and halted their once-prodigious stock buyback programs. But both Exxon and Chevron remain dividend aristocrats--the 10% or so of companies in the S&P 500 that have increased dividends annually for at least a quarter century.

Their status as integrated companies provides a downstream cushion to the upstream carnage caused by low hydrocarbon prices, but not enough. Both companies had to pay out more than their free cash flow last quarter despite big reductions in capital spending.

It is time for a reality check. If investors think the still-glum consensus outlook on oil and natural-gas prices is wrong then they should bet instead on pure exploration and production companies. Those would benefit far more from higher prices. But, if investors want safety and income in the seventh year of Lilliputian bond yields, they seem to be overpaying.

Both Exxon and Chevron now command nearly their highest multiple of projected enterprise value to earnings before interest, tax, depreciation and amortization since the spring of 2000. Several relatively dowdy companies look pricey on that basis, too, with supermarket chain Kroger, cereal-maker Kellogg, household-goods maker Colgate-Palmolive, fast-food chain McDonald's and pharmaceutical giant Pfizer fetching a 30% premium on average to their multiples from 2010 through 2015.

"Safety" is a poorly understood term. Just because the odds of a dividend cut are remote it doesn't mean a company's share price isn't vulnerable. Paying up for big oil in what could still be a prolonged industry slump could end up being downright dangerous.

Write to Spencer Jakab at spencer.jakab@wsj.com

Credit: By Spencer Jakab

Subject: Prices; Investments; Financial performance

Company / organization: Name: Pfizer Inc; NAICS: 339113, 325412; Name: Colgate-Palmolive Co; NAICS: 325620, 311911

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Apr 29, 2016

column: Heard on the Street

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1785332789

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Business News: Exxon Swoons, but Investors Cheer --- U.S. oil giant is latest to post dismal results, but shareholders see hope as prices rise

Author: Olson, Bradley; Sider, Alison; Kent, Sarah

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]30 Apr 2016: B.4.

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Abstract:

Exxon Mobil Corp. reported its smallest quarterly profit since 1999 on Friday, the latest in a parade of woeful earnings out of oil and gas producers this year as a supply glut dragged down prices and ate into income. Shares of major oil companies including BP PLC and Total SA, and independent producers such as Pioneer Natural Resources Co., all gained after reporting first-quarter earnings because they either swung to a profit or reported smaller losses than anticipated.

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Exxon Mobil Corp. reported its smallest quarterly profit since 1999 on Friday, the latest in a parade of woeful earnings out of oil and gas producers this year as a supply glut dragged down prices and ate into income.

Despite the company's 63% drop in profit, investors shrugged off the weak performance and Exxon's shares rose less than 1% to $88.40. That mirrored a trend of generally higher oil and gas stocks after first-quarter earnings as crude prices this week climbed to their highest levels of the year.

Shares of major oil companies including BP PLC and Total SA, and independent producers such as Pioneer Natural Resources Co., all gained after reporting first-quarter earnings because they either swung to a profit or reported smaller losses than anticipated.

That sentiment has some energy executives optimistic the green shoots of a gradual recovery may be sprouting in the oil patch, as crude prices rise above $45 this week to their highest levels of the year. Prices for June delivery of the U.S. benchmark finished at $45.92 on Friday.

Global demand for crude is showing a "healthy" increase and has begun to exceed the 10-year average, said Jeff Woodbury, Exxon's vice president of investor relations. "We've been through these down-cycles before," Mr. Woodbury said on Friday. "We built this business to be very durable in a low-price environment."

BP said earlier this week its net loss shrunk nearly 80% from the prior quarter. On Wednesday, France's Total and Norway's Statoil ASA said they were back in the black last quarter after suffering losses in the final three months of 2015.

The improved results reflect aggressive cuts in spending, in plans for drilling and employment that companies made to cope with a nearly two-year slump in crude prices. Along with a surge in oil prices, which have risen more than 70% from a February low, the results have helped fuel a 9% rally in energy stocks in the S&P 500 index in the past month.

Not every company followed the trend. Chevron Corp. reported a $725 million loss on Friday compared with a profit of $2.6 billion in the first quarter of 2015.

Italian oil giant Eni SpA also reported a nearly $1 billion loss for the quarter, though its share price fell by less than 1% on Friday since the results weren't as bad as many investors had predicted.

In the U.S., the extreme belt tightening by oil companies is finally leading to declines in crude output that are expected to help rebalance the global market. Federal figures show daily U.S. oil production fell below 9 million barrels a few weeks ago, after peaking at 9.7 million a day in April 2015.

"The market is already looking past these results since oil is up almost 80% from earlier lows," said Brian Youngberg, an energy analyst with Edward Jones. "The expectation was that earnings were going to be really bad for the entire sector, but many companies did better."

Exxon, based in Irving, Texas, reported a profit of $1.81 billion, or 43 cents a share, down from $4.94 billion, or $1.17 a share, a year earlier. Analysts polled by Thomson Reuters expected a per-share profit of 31 cents. Revenue dropped 28% to $48.71 billion.

Exxon and Chevron reported earnings nearly halved from their businesses refining and processing crude into gasoline and other fuels. Those units have been critical in the past 18 months in helping the companies weather the storm of falling prices. Refining has been among the only profitable businesses in the industry since prices began to fall precipitously in 2014.

The units that explore for and produce oil and gas were the biggest red-ink generators for Exxon and Chevron. In the U.S., Exxon's shale company lost $832 million, and the overall loss globally for those operations was the first in more than a decade.

Chevron's exploration and production unit lost about $1.5 billion, and the company said it would cut another 1,000 jobs later this year, bringing total job cuts to 8,000 employees, or 12% of its workforce.

While the cost-slashing has helped energy companies protect their balance sheets, it has had a devastating impact on another part of the industry -- the oil-field services providers that do the gritty work of drilling and pumping.

Halliburton Co. took a $2.1 billion restructuring charge during the quarter, stemming from severance costs and from a write down of assets and infrastructure no longer needed. Baker Hughes Inc. reported a $981 million loss for the quarter, on revenue that declined 21% from the previous quarter, to $2.7 billion.

Even Schlumberger Ltd., the world's largest oil-field services company by revenue, isn't immune. Its chief executive, Paal Kibsgaard, said exploration and production companies "displayed clear signs of operating in a full-scale cash crisis" during the first quarter.

In North America, producers are cutting budgets by as much as 50% this year, Schlumberger said. The Anglo-Dutch company expects international spending to fall about 20%.

"This is the toughest environment we have seen for 30 years, and it is likely to get even tougher before the market returns," Mr. Kibsgaard said.

---

Erin Ailworth and Nicole Friedman contributed to this article.

Credit: By Bradley Olson, Alison Sider and Sarah Kent

Subject: Net losses; Financial performance; Petroleum production; Company reports

Location: United States--US

Company / organization: Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 8510: Petroleum industry; 9190: United States

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.4

Publication year: 2016

Publication date: Apr 30, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1785964301

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1785964301?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

A Climate Courtroom Crusade Scorches Due Process; Attorneys general demand Exxon's files without first asking a judge--a case of the fox guarding the hens.

Author: Hamburger, Philip

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 May 2016: n/a.

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Abstract:

[...]an attorney general who wanted to rifle through a private company's filing cabinet had to get a warrant signed by a judge based on probable cause, or had to ask a court overseeing a grand jury to issue a subpoena. Regrettably, this evasion of judicial subpoenas is only the beginning of the due-process problem, for Mr. Schneiderman and other attorneys general have the power to bring not simply administrative, but criminal, charges on the basis of the information they force out of private parties.

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Six months ago, New York Attorney General Eric Schneiderman issued a subpoena demanding that Exxon Mobil turn over records concerning its research on climate change. In March, Mr. Schneiderman took the predictable next step, announcing that a coalition of attorneys general will hold fossil fuel companies accountable. "The First Amendment, ladies and gentlemen, does not give you the right to commit fraud," he said.

The threat to scientific inquiry and political speech is obvious. Not so widely recognized is the underlying violation of due process. Start with the fact that Mr. Schneiderman and the other attorneys general have relied, as their opening move, on a nonjudicial subpoena to force the disclosure of information.

Traditionally, federal and state governments could demand testimony, papers or other information in only very limited ways. A legislative committee could call witnesses and insist that they appear and testify. But an attorney general who wanted to rifle through a private company's filing cabinet had to get a warrant signed by a judge based on probable cause, or had to ask a court overseeing a grand jury to issue a subpoena.

Otherwise the attorney general had to wait until he brought civil or criminal charges, and in a criminal case he could get only a very limited version of discovery. As the founding generation knew from experience, government demands for papers could be dangerous.

Much has changed over the past century. When civil discovery of evidence, now a common process, evolved in the late 19th and early 20th centuries, some states, for the sake of convenience, allowed subpoenas for such purposes to be signed not by judges, but by clerks, and then even by parties in cases. The subpoena power thus began to drift out of the hands of the judiciary.

Although this initial step was trivial, it offered legitimacy for what followed: Over the 20th century, Congress gave administrative agencies, from the Agriculture Department to the Department of Health and Human Services, statutory authority to issue subpoenas in their own name. And state legislators have granted such power to their equivalent agencies.

All sorts of administrators, at both levels of government, thereby acquired an expansive power to demand information without initially working through a judge. This was bad enough, but it gets worse. Lawmakers also granted subpoena authority to their attorneys general. New York did so in 1921. Even prosecutors thus can now read through private papers on demand.

The Supreme Court upheld the subpoena power of agencies in United States v. Morton Salt (1950), on the theory that administrators are exercising the power of a grand jury. This is improbable, but it is even more improbable for prosecutors, who lead grand jury proceedings. Having a role in facilitating grand juries, a prosecutor cannot, by himself, be assumed to act as one. Even if the Morton Salt argument really justifies administrative subpoenas, it cannot explain an attorney general's subpoena.

Nor can the dangers of giving a subpoena power to prosecutors be waved away. In a grand jury, a judge oversees the proceedings to prevent excessive intrusions into private papers and lives. In a government agency, the administrator typically is not an elected official, and therefore is not using the subpoena power to generate public support for his own political campaign. But when an attorney general issues a subpoena, the opposite conditions prevail: There is no ongoing judicial supervision and far too much politics.

Regrettably, this evasion of judicial subpoenas is only the beginning of the due-process problem, for Mr. Schneiderman and other attorneys general have the power to bring not simply administrative, but criminal, charges on the basis of the information they force out of private parties. They thereby dangerously combine the roles of grand jury and prosecutor.

If Mr. Schneiderman were bringing a civil case, he could seek discovery only after filing a complaint about a concrete injury, and his demands would be subject to judicial supervision, including protective orders to narrow their scope. If he were bringing a criminal case, he would have difficulty getting much information at all from the defendant through discovery.

But with the usurped subpoena power, he can engage in a roving investigation, unlimited by any formal accusation, and then can use the results to bring criminal charges. This is a dangerous amalgam of grand-jury and prosecutorial power in one person. Mr. Schneiderman's subpoena to Exxon Mobil thus stands apart. His ability to demand information in this way is a quintessential case of the fox guarding the henhouse.

The threats to privacy in our society are not merely technological; they also are legal. In addition to electronic surveillance, nonjudicial subpoenas allow government to examine private documents as if they were an open book. And as shown by Mr. Schneiderman, when attorneys general can issue such subpoenas, a valuable judicial power becomes a prosecutorial threat to liberty and due process.

Mr. Hamburger is a law professor at Columbia University and the author of "Is Administrative Law Unlawful?" (University of Chicago Press, 2014).

Credit: By Philip Hamburger

Subject: Attorneys general; Grand juries; Subpoenas; Government agencies; Court hearings & proceedings

Location: New York

Company / organization: Name: Congress; NAICS: 921120; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Department of Health & Human Services; NAICS: 923120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: May 11, 2016

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1788106778

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Mobil Says Nigerian Exports Hit After Pipeline Damage; Company declares 'force majeure' on Nigerian crude exports

Author: Kent, Sarah

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 May 2016: n/a.

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In the past week, both Royal Dutch Shell PLC and Chevron Corp. have faced disruptions to their Nigerian output and the International Energy Agency said Thursday the country's oil production hit a two-decade low in April.

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LONDON--Exxon Mobil Corp. on Friday said its exports of Nigerian crude had been disrupted after a drilling rig damaged multiple pipelines in the West African country.

The incident is the latest blow for Nigeria's oil sector, which has been plagued by a series of outages caused by damage to the country's infrastructure. In the past week, both Royal Dutch Shell PLC and Chevron Corp. have faced disruptions to their Nigerian output and the International Energy Agency said Thursday the country's oil production hit a two-decade low in April.

Exxon said the incident occurred on May 8 when a drilling rig owned by Depthwize Nigeria Ltd. and drilling on behalf of Conoil Producing Ltd. experienced mechanical difficulties and damaged Exxon's pipelines.

The company said some of its production had been curtailed and declared force majeure, a move that gives it legal indemnity for being unable to fulfil its export obligations.

Exxon didn't say how much oil was coming off line and wouldn't confirm the location of pipelines. The company operates the pipelines as a joint venture with Nigerian National Petroleum Corp.

Exxon said it is working with NNPC to manage potential supply impacts, and with Depthwize to remove the rig and complete the damage assessment.

Write to Sarah Kent at sarah.kent@wsj.com

Credit: By Sarah Kent

Subject: Pipelines; Petroleum production

Location: Nigeria

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: International Energy Agency; NAICS: 926130, 928120, 541720

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: May 13, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1788539909

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1788539909?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

1923-2016; Howard Kauffmann Was Exxon President During Uproar Over Oil Prices; After a 39-year career in oil industry, executive ran small company making custom cabinets

Author: Hagerty, James R

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 May 2016: n/a.

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Howard Kauffmann capped his 39-year career in the oil industry by serving as president of Exxon Corp., the world's largest oil company, at a time of public rage over soaring oil prices. After the war, he joined an affiliate of Standard Oil Co. of New Jersey, which later became Exxon and now is Exxon Mobil Corp. He spent nearly a decade overseas as an Exxon executive in Peru, Colombia and England, where he developed a taste for P.G. Wodehouse novels.

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Howard Kauffmann capped his 39-year career in the oil industry by serving as president of Exxon Corp., the world's largest oil company, at a time of public rage over soaring oil prices.

Mr. Kauffmann died May 3 of non-Hodgkin lymphoma at home in Atlanta. He was 93. His death came 16 days after that of his former boss, Clifton Garvin, chief executive of Exxon from 1975 to December 1986.

"That was the time when the wheels fell off for the global oil companies," said Daniel Yergin, author of "The Prize," a history of the industry.

Major oil companies lost much of their power in the 1970s as countries from Saudi Arabia to Venezuela nationalized oil fields. When prices surged and Americans sometimes had to wait for hours to get gasoline, many blamed Big Oil. Exxon was forced to defend itself, partly by noting that it couldn't control supply or demand.

Mr. Garvin got so many abusive calls at home that he needed an unlisted number. When Mr. Kauffmann gave a commencement address in 1978, he said many people regarded his industry as "the source of all recent evil."

Amid fears that the world was rapidly running out of crude, oil companies tried to diversify.

In 1979, Exxon announced it had devised a synthesizer that would make electric motors far more efficient. The company also purchased Reliance Electric, a Cleveland-based maker of motors. Mr. Kauffmann said the deal would allow rapid introduction of Exxon's energy-saving device.

But the synthesizer was later dropped when costs proved too high, and Exxon decided to sell Reliance in 1986. The company also experimented with solar energy and lithium-ion batteries.

In the early 1980s, Exxon diversified into office equipment and made such products as Qwip fax machines and Qyx typewriters. That project also flopped, and Exxon exited those businesses in the mid-1980s.

Other oil companies also floundered with acquisitions. Mobil Corp. bought Montgomery Ward, a struggling catalog retailer, in the mid-1970s but failed to revive it.

Some politicians berated oil companies for diversifying and argued they should focus on finding more oil. Exxon invested in shale oil projects but concluded the costs were too high. The company eventually decided its cash flow far exceeded what it could sensibly spend on oil exploration or acquisitions. So it began spending billions of dollars buying back shares and raising dividends.

Howard C Kauffmann was born on Feb. 25, 1923, in Tulsa, Okla. "We don't really know what the middle C stands for, if anything," said Lane Kauffmann, one of his sons, who added that the mysterious middle C was a family tradition. Howard Kauffmann's father, also named Howard C Kauffmann, worked in the oil industry, and the young Howard spent time in the oil fields during summer vacations.

At the University of Oklahoma, he received a bachelor's degree in mechanical engineering in 1943. He then served in the Navy as an engineering officer aboard the USS Cleveland in the Pacific during World War II.

After the war, he joined an affiliate of Standard Oil Co. of New Jersey, which later became Exxon and now is Exxon Mobil Corp. He spent nearly a decade overseas as an Exxon executive in Peru, Colombia and England, where he developed a taste for P.G. Wodehouse novels. In 1975, he was promoted to president.

Mr. Kauffmann balanced his working life with Christian faith and a love of sports. He joined a small prayer group for senior executives in New York. He played tennis and once told a reporter he was "interested in any game that has a ball in it."

Lane Kauffmann, his son, recalled that his father always came home before dark and was ready to throw or bat balls around with his sons. He occasionally had to take a business call at home but generally finished his work in the office. He rose early and "was a very efficient time manager," his son said.

Just a year younger than Mr. Garvin, the CEO, Mr. Kauffmann was never well-positioned to reach the top job. In 1985, he received a bonus of $1.6 million, the current equivalent of $3.5 million, for retiring early at age 62.

Mr. Kauffmann and his wife then built a home on Skidaway Island in Savannah, Ga. Rather than devoting himself entirely to golf and tennis, he invested in a local firm that made custom cabinets and helped run that business for several years. The former Exxon president even occasionally delivered cabinets to customers.

When Hurricane Katrina struck the Gulf Coast in 2005, Mr. Kauffmann, then 82, joined a group of Baptist church volunteers who spent several days ripping moldy wallboard out of damaged homes.

He also served on the boards of Pfizer Inc., United Technologies Corp. and other companies and was a director of nonprofits including the National Action Council for Minorities in Engineering.

His survivors include his wife of 71 years, Suzanne McMurray Kauffmann, four children, seven grandchildren and one great grandchild.

Write to James R. Hagerty at bob.hagerty@wsj.com

Credit: By James R. Hagerty

Subject: Oil fields; Petroleum industry

Location: Atlanta Georgia

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: May 13, 2016

Section: World

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1788622096

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Last updated: 2017-11-23

Database: The Wall Street Journal

What About the Inaccurate Data on the Other Side? New York's AG can compel Exxon Mobil to turn over its data refuting global warming while Congress can't compel the EPA to reveal its data supporting global warming.

Author: Anonymous

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 May 2016: n/a.

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Abstract:

Regarding Philip Hamburger's "A Climate Courtroom Crusade Scorches Due Process " (op-ed, May 12): I find it curious that New York Attorney General Eric Schneiderman can compel Exxon Mobil to turn over its data refuting global warming while Lamar Smith, a sitting U.S. congressman, cannot compel the EPA to reveal its data allegedly supporting global warming.

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Regarding Philip Hamburger's "A Climate Courtroom Crusade Scorches Due Process " (op-ed, May 12): I find it curious that New York Attorney General Eric Schneiderman can compel Exxon Mobil to turn over its data refuting global warming while Lamar Smith, a sitting U.S. congressman, cannot compel the EPA to reveal its data allegedly supporting global warming. It would seem that the first step in proving fraud would be to demonstrate that Exxon Mobil is incorrect. Obviously, if the EPA had such data in its possession, it would be providing it to whomever desired it and probably pressuring media outlets to publish it.

Michael R. Cheuvront

San Antonio

New York AG Schneiderman is claiming Exxon Mobil suppressed global-warming research and is committing fraud. Will he also be prosecuting Prof. Michael Mann's misleading 20th-century "hockey stick" graph of global warming or the U.N. saying temperatures have increased in the last 17 years, when they have not?

Ken Nelson

Chicago

Subject: Global warming; Greenhouse effect

Location: United States--US New York

People: Smith, Lamar Schneiderman, Eric

Company / organization: Name: Environmental Protection Agency--EPA; NAICS: 924110; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: May 16, 2016

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1789103066

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Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Is Big Tobacco? Tell Me Another; The corrupt Medicaid deal propped up tobacco stocks and government revenue.

Author: Jenkins, Holman W, Jr

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 May 2016: n/a.

ProQuest document link

Abstract: None available.

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Before anyone collapses uncritically in front of the claim by activist groups and liberal politicians that they are doing to Exxon Mobil what they did to tobacco, readers might want to take a look at tobacco stock prices.

Yup, all up strongly since the 1998 "master settlement agreement" that 46 states imposed on Big Tobacco ostensibly as punishment for its sins. How was the industry expected to pay $246 billion in alleged Medicaid damages? By selling more cigarettes, of course, now helped by a government-orchestrated pricing cartel, with the profits equitably shared between the companies, the pols and the buccaneers of the trial bar.

A decade later, the American Bar Association Journal would look back and conclude: "The only big winners in the litigation appear to be the tobacco companies, the state treasurers and the lawyers who represented both sides."

So obviously corrupt was the outcome that it had one salutary effect: It capped the careers of the ambitious state pols who promoted this travesty. Hubert Humphrey III, possessor of Minnesota's most illustrious name, finished last in a three-man governor's race. Texas AG Dan Morales went to jail for creating fake documents in an attempt to secure a slice of the state's windfall for a law-school buddy.

Dickie Scruggs, most prominent of the anti-tobacco lawyers, would later go to jail for bribing a judge. One wonders if New York Attorney General Eric Schneiderman and California's Kamala Harris, who keep trumpeting the tobacco precedent while attacking Exxon, really have given their analogy the due diligence it deserves.

On the advice of their lawyers, tobacco executives pretended not to know what their own warning labels said, which became their main source of legal jeopardy. In allegedly parallel fashion, Exxon is accused of knowing about the science of climate change, and casting doubt on the science of climate change.

The problem is, knowing and doubting are the same when it comes to the iffy claims of climate science at its current state of development.

Rhode Island's Sheldon Whitehouse, in his latest unattended Senate soliloquy demanding a federal RICO investigation of Exxon, claims that "real science continues to prove the connection between carbon pollution and the startling changes we see in our climate and oceans."

He certainly didn't get this from the latest report of the Intergovernmental Panel on Climate Change, sharer of Al Gore's Nobel Prize. While insisting that climate models have "improved steadily," the group abandons its central forecast of three degrees Celsius of warming from a doubling of atmospheric carbon-dioxide and offers no central forecast at all.

Where it once said warming of less than 1.5 C would be "very unlikely," now it says warming of less than 1 C would be "extremely unlikely."

With these adjustments, even a politicized, orthodoxy-prone IPCC recognizes an emerging shake-up in climate science. After 200 years of prolific coal burning, after 30 years of increasingly rigorous temperature measurement, data from the actual atmosphere no longer are being treated as an inconvenience by climate modelers. Now these real-world data are driving new estimates of climate sensitivity--and, lo, these estimates suggest a net impact at the very low end of previous standard forecasts.

Exxon never denied the risk of human influence on climate, as even the exposés generated by compliant media can't help showing. Its real sin, aside from consorting with researchers with a penchant for realism, was criticizing policy proposals that would be enormously costly while having vanishingly small effect on atmospheric carbon-dioxide.

Transportation fuels account for less than 15% of global emissions, and Exxon's production accounts for just 4% of transportation fuels. If the U.S. government were looking for somebody to sue over climate change--or, more to the point, over climate-change hypocrisy--it would do better to look in the mirror. As a recent paper by the nonprofit National Bureau of Economic Research put it, "Coal mined on federally managed lands accounts for approximately 40% of U.S. coal consumption and 13% of total U.S. energy-related CO2 emissions."

He now criticizes the 1998 tobacco settlement, but activist Matt Myers and his group Tobacco-Free Kids walked away with a healthy share of the proceeds. Meanwhile, the states quickly reneged on their own promise to spend the proceeds on anti-smoking programs. And, just this month, a Food and Drug Administration effort to shut down e-cigarettes was quietly applauded by state treasurers and conventional cigarette companies as a step to uphold their revenue from the traditional tobacco products covered in the settlement.

As Donald Trump might say, nobody ever went broke emphasizing the dishonesty and opportunism of the U.S. political class, including the activist class. That's your most reliable forecast for how an Exxon lawsuit might play out.

Credit: By Holman W. Jenkins, Jr.

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: May 17, 2016

column: Business World

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1789312962

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Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Faces Proxy Access Showdown, Again; Last year's proposal was backed by 49.4% of votes cast

Author: Lublin, Joann S

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 May 2016: n/a.

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Abstract:

Related * Yahoo Revises Bylaws to Grant Shareholders Proxy Access (March 30) * Amazon Offers Proxy Access (Feb. 25) * Apple Offers Proxy Access (Dec. 22, 2015) * Staples Adopts Proxy-Access Policy (Dec. 1, 2015) Among the big businesses doing so last year were General Electric Co., AT&T Inc., Apple Inc., Citigroup Inc. and McDonald's Corp. Companies handing investors the keys to their boardrooms typically changed corporate bylaws so owners with at least a 3% stake for at least three years can nominate several board members.

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A showdown looms Wednesday for Exxon Mobil Corp. over proxy access, the latest push by investors seeking greater influence at the board level.

Shareholders at the annual meeting of the world's largest publicly traded oil company will decide whether they favor giving investors greater power to propose director candidates. Proxy access was backed by 49.4% of votes cast last year. The resolution may pass this year, following a significant shift by Vanguard Group, Exxon's biggest institutional investor.

A number of major U.S. companies already have opened up their corporate elections via proxy access, which gives shareholders more power to oust directors and influence corporate strategy by listing competing board candidates on official ballots for annual meetings. About 36% of S&P 500 companies have embraced proxy access, up from about 1% in 2014, said Institutional Shareholder Services, a proxy-advisory firm.

Related

* Yahoo Revises Bylaws to Grant Shareholders Proxy Access (March 30)

* Amazon Offers Proxy Access (Feb. 25)

* Apple Offers Proxy Access (Dec. 22, 2015)

* Staples Adopts Proxy-Access Policy (Dec. 1, 2015)

Among the big businesses doing so last year were General Electric Co., AT&T Inc., Apple Inc., Citigroup Inc. and McDonald's Corp. Companies handing investors the keys to their boardrooms typically changed corporate bylaws so owners with at least a 3% stake for at least three years can nominate several board members.

Exxon remains the only one of the five largest U.S. oil-and-gas concerns without proxy access.

"This is the most important vote of the 2016 proxy season," said New York City Comptroller Scott M. Stringer, who oversees $153.8 billion in pension funds. He is leading a campaign that initially challenged Exxon and 73 other companies to adopt or improve proxy access this year. Exxon "is the biggest company targeted," Mr. Stringer said.

Fifty-one of those targets endorsed the idea ahead of their 2016 annual meetings. Shareholders' support averaged 60.2% at the nine companies whose latest meeting already has occurred. Mr. Stringer waged a similar proxy-access drive in 201 5, assisted by an influential bloc of public pension funds.

"Many companies that had close calls in their votes last year ended up adopting some form of proxy access in advance of this (proxy) season,'' said Patrick S. McGurn, special counsel for ISS.

Exxon remains opposed to proxy access. Board members don't see any meaningful evidence "that proxy access would improve corporate governance or enhance market capitalization,'' the company's latest proxy statement said.

Proxy access instead could increase the influence of special-interest groups and "undermine a business model that has long served the interests of our shareholders well,'' according to the statement.

Shareholder resolutions rarely garner majority support at Exxon. Indeed, environmentally minded investors have sought for decades to use its annual meeting as a bully pulpit, usually with limited success. They will try again this year with climate-change-related proposals.

Only one Exxon investor resolution has passed since 2003, according to Alan T. Jeffers, a company spokesman. The successful 2006 measure urged Exxon to require that board members obtain most of the vote to get re-elected. Directors soon implemented majority voting.

Proxy access could win approval this week at Exxon, partly due to a February policy change by Vanguard, which owned 6.3% of Exxon shares as of Dec. 31. The mutual-fund firm now favors allowing proxy access by investors holding as little as 3% of a company's shares, as stated in the Exxon proposal. Vanguard voted against the proposal at Exxon last year, when the firm supported a 5% threshold.

Exxon's Mr. Jeffers declined to comment about how directors would respond if proxy access gets majority support this week. A shareholder proposal opposed by board members but blessed by investors would be reconsidered by the board, Exxon's governance guidelines state.

Write to Joann S. Lublin at joann.lublin@wsj.com

Credit: By Joann S. Lublin

Subject: Boards of directors; SEC proxy rules; Proxy statements; Corporate governance; Outside directors

Location: United States--US

People: Stringer, Scott M

Company / organization: Name: AT & T Inc; NAICS: 517110, 517210; Name: General Electric Co; NAICS: 334512, 334519, 332510, 334290; Name: Citigroup Inc; NAICS: 551111; Name: Apple Inc; NAICS: 511210, 334111, 334220

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: May 21, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1790158193

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Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Faces Proxy Access Showdown, Again; Last year's proposal was backed by 49.4% of votes cast

Author: Lublin, Joann S

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 May 2016: n/a.

ProQuest document link

Abstract:

Board members don't see any meaningful evidence "that proxy access would improve corporate governance or enhance market capitalization,'' the company's latest proxy statement said.

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A showdown looms Wednesday for Exxon Mobil Corp. over proxy access, the latest push by investors seeking greater influence at the board level.

Shareholders at this week's annual meeting of the world's largest publicly traded oil company will decide whether they favor giving investors greater power to propose director candidates.

Proxy access was backed by 49.4% of votes cast last year. The resolution may pass this year, following a significant shift by Vanguard Group, Exxon's biggest institutional investor.

A number of major U.S. companies already have opened up their corporate elections via proxy access, which gives shareholders more power to oust directors and influence corporate strategy by listing competing board candidates on official ballots for annual meetings.

About 36% of S&P 500 companies have embraced proxy access, up from about 1% in 2014, said Institutional Shareholder Services, a proxy-advisory firm. Among the big businesses doing so last year were General Electric Co., AT&T Inc., Apple Inc., Citigroup Inc. and McDonald's Corp. Companies handing investors the keys to their boardrooms typically changed corporate bylaws so owners with at least a 3% stake for at least three years can nominate several board members.

Related

* Yahoo Revises Bylaws to Grant Shareholders Proxy Access (March 30)

* Amazon Offers Proxy Access (Feb. 25)

* Apple Offers Proxy Access (Dec. 22)

* Staples Adopts Proxy-Access Policy (Dec. 1)

Exxon remains the only one of the five largest U.S. oil-and-gas concerns without proxy access.

"This is the most important vote of the 2016 proxy season," said New York City Comptroller Scott M. Stringer, who oversees $153.8 billion in pension funds. He is leading a campaign that initially challenged Exxon and 73 other companies to adopt or improve proxy access this year. Exxon "is the biggest company targeted."

Fifty-one of those targets endorsed the idea ahead of their 2016 annual meetings. Proxy access gained majority support at six of the 10 companies whose latest meeting already has occurred.

Mr. Stringer waged a similar proxy-access drive in 201 5, assisted by an influential bloc of public pension funds.

"Many companies that had close calls in their votes last year ended up adopting some form of proxy access in advance of this [proxy] season,'' said Patrick S. McGurn, special counsel for ISS.

Exxon remains opposed to proxy access. Board members don't see any meaningful evidence "that proxy access would improve corporate governance or enhance market capitalization,'' the company's latest proxy statement said.

Proxy access instead could increase the influence of special-interest groups and "undermine a business model that has long served the interests of our shareholders well,'' according to the statement.

Shareholder resolutions rarely garner majority support at Exxon. Indeed, environmentally minded investors have sought for decades to use its annual meeting as a bully pulpit, usually with limited success. They will try again this year with climate-change-related proposals.

Only one Exxon investor resolution has passed since 2003, according to Alan T. Jeffers, a company spokesman. The successful 2006 measure urged Exxon to require that board members obtain most of the vote to get re-elected. Directors soon implemented majority voting.

Proxy access could win approval this week at Exxon, partly due to a February policy change by Vanguard, which owned 6.3% of Exxon shares as of Dec. 31. The mutual-fund firm now favors allowing proxy access by investors holding as little as 3% of a company's shares, as stated in the Exxon proposal.

Vanguard voted against the proposal at Exxon last year, when the firm supported a 5% threshold.

Exxon's Mr. Jeffers declined to comment about how directors would respond if proxy access gets majority support this week. A shareholder proposal opposed by board members but favored by investors would be reconsidered by the board, Exxon's governance guidelines state.

Write to Joann S. Lublin at joann.lublin@wsj.com

Credit: By Joann S. Lublin

Subject: Boards of directors; Proxy statements; Corporate governance; Outside directors; SEC proxy rules

Location: United States--US

People: Stringer, Scott M

Company / organization: Name: AT & T Inc; NAICS: 517110, 517210; Name: General Electric Co; NAICS: 334512, 334519, 332510, 334290; Name: Citigroup Inc; NAICS: 551111; Name: Apple Inc; NAICS: 511210, 334111, 334220

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: May 22, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1790273504

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1790273504?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Business News -- The Week Ahead: Exxon Faces a Proxy-Access Vote

Author: Lublin, Joann S

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]23 May 2016: B.2.

ProQuest document link

Abstract:

Board members don't see any meaningful evidence "that proxy access would improve corporate governance or enhance market capitalization," the company's latest proxy statement said.

Links: 360 Link to Full Text

Full text:  

A showdown looms Wednesday for Exxon Mobil Corp. over proxy access, the latest push by investors seeking greater influence at the board level.

Shareholders at this week's annual meeting of the world's largest publicly traded oil company will decide whether they favor giving investors greater power to propose director candidates.

Proxy access was backed by 49.4% of votes cast last year. The resolution may pass this year, following a significant shift by Vanguard Group, Exxon's biggest institutional investor.

A number of major U.S. companies already have opened up their corporate elections via proxy access, which gives shareholders more power to oust directors and influence corporate strategy by listing competing board candidates on official ballots for annual meetings.

About 36% of S&P 500 companies have embraced proxy access, up from about 1% in 2014, said Institutional Shareholder Services, a proxy-advisory firm. Among the big businesses doing so last year were General Electric Co., AT&T Inc., Apple Inc., Citigroup Inc. and McDonald's Corp. Companies handing investors the keys to their boardrooms typically changed corporate bylaws so owners with at least a 3% stake for at least three years can nominate several board members.

Exxon remains the only one of the five largest U.S. oil-and-gas concerns without proxy access.

"This is the most important vote of the 2016 proxy season," said New York City Comptroller Scott M. Stringer, who oversees $153.8 billion in pension funds. He is leading a campaign that initially challenged Exxon and 73 other companies to adopt or improve proxy access this year. Exxon "is the biggest company targeted."

Fifty-one of those targets endorsed the idea ahead of their 2016 annual meetings. Proxy access gained majority support at six of the 10 companies whose latest meeting already has occurred.

Mr. Stringer waged a similar proxy-access drive in 2015, assisted by an influential bloc of public pension funds.

"Many companies that had close calls in their votes last year ended up adopting some form of proxy access in advance of this [proxy] season," said Patrick S. McGurn, special counsel for ISS.

Exxon remains opposed to proxy access. Board members don't see any meaningful evidence "that proxy access would improve corporate governance or enhance market capitalization," the company's latest proxy statement said.

Proxy access instead could increase the influence of special-interest groups and "undermine a business model that has long served the interests of our shareholders well," according to the statement.

Shareholder resolutions rarely garner majority support at Exxon. Indeed, environmentally minded investors have sought for decades to use its annual meeting as a bully pulpit, usually with limited success. They will try again this year with climate-change-related proposals.

Only one Exxon investor resolution has passed since 2003, according to Alan T. Jeffers, a company spokesman. The successful 2006 measure urged Exxon to require that board members obtain most of the vote to get re-elected. Directors soon implemented majority voting.

Proxy access could win approval this week at Exxon, partly due to a February policy change by Vanguard, which owned 6.3% of Exxon shares as of Dec. 31. The mutual-fund firm now favors allowing proxy access by investors holding as little as 3% of a company's shares, as stated in the Exxon proposal.

Vanguard voted against the proposal at Exxon last year, when the firm supported a 5% threshold.

Exxon's Mr. Jeffers declined to comment about how directors would respond if proxy access gets majority support this week. A shareholder proposal opposed by board members but favored by investors would be reconsidered by the board, Exxon's governance guidelines state.

Credit: By Joann S. Lublin

Subject: Corporate governance; Shareholder voting; Proxies; Boards of directors; SEC proxy rules

Location: United States--US

People: Stringer, Scott M

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Classification: 2110: Boards of directors; 4310: Regulation; 2400: Public relations; 9190: United States; 8510: Petroleum industry

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.2

Publication year: 2016

Publication date: May 23, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1790308828

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon, Chevron Shareholders Narrowly Reject Climate-Change Stress Tests; Supporters of proposals see victory in defeat

Author: Olson, Bradley; Friedman, Nicole

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 May 2016: n/a.

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Abstract:

Separately on Wednesday, the White House said it planned to propose a new rule that companies with federal contracts must disclose whether they share information about the risks that a changing climate could pose to their operations, as well as their goals to reduce greenhouse gas emissions.

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Shareholders at Exxon Mobil Corp. and Chevron Corp. narrowly voted down resolutions calling for stress tests to determine the risk that efforts to curb climate change pose to their businesses.

Despite the defeat, the proposals drew more support than any contested climate-related votes in the history of the two biggest U.S. oil and gas companies. Preliminary results showed 41% support from Chevron investors that cast ballots and 38% support at Exxon, an indication that more mainstream shareholders like pension funds, sovereign-wealth funds and asset managers are starting to take more seriously the threat of a global weaning from fossil fuels.

The number of shareholders supporting the climate-risk measures "is significant, and it will continue to grow," said Beth Richtman, investment manager at the California Public Employees' Retirement System, which manages about $290 billion. Calpers owns about $1 billion worth of Exxon shares and approximately $600 million in Chevron stock.

"There's a groundswell of share owners who are going to keep pushing this forward," she said. "We need to see them rise to the realm of best practices in terms of climate risk reporting, and we're not there yet."

While the shareholder votes aren't binding, supporters of the measures declared victory even in defeat after the oil companies' annual shareholder meetings Wednesday.

"You have to read this as a shot across the bow of the industry," said Andrew Logan, director of the oil and gas program at Ceres, a Boston-based nonprofit group that advocated for the proposals.

Exxon and Chevron had fought to keep the measures off the ballot, a push that the U.S. Securities and Exchange Commission rebuffed.

Separately on Wednesday, the White House said it planned to propose a new rule that companies with federal contracts must disclose whether they share information about the risks that a changing climate could pose to their operations, as well as their goals to reduce greenhouse gas emissions.

That rule, expected to be completed this fall, would affect most federal contracts. The U.S. government is a major buyer of oil products, including jet fuel and diesel used by the military.

Exxon Chief Executive Rex Tillerson said Wednesday the company includes in its energy outlook a proxy cost on carbon.

"It's really the only way we know to accommodate in our financial decision-making the impacts of future policies that are yet to be formulated," he said. He added that most Exxon projects are either too short-term or too large for the theoretical cost of carbon they use in planning purposes to affect their decision-making.

Exxon has also noted it published a 2014 report on managing climate risks that said none of the company's oil and gas holdings are threatened by a global push to reduce carbon emissions.

Chevron told investors that the proposed climate measure was flawed. Efforts to limit warming could allow some energy producers, such as those who sell natural gas, to benefit while others fall out of favor, including coal-mining companies , Chevron said. The company is a large producer of natural gas and factors in a theoretical future price of carbon when deciding which projects to sanction, making a stress test unnecessary, the company said.

"We don't think this proposal will advance our thinking," Chevron Chief Executive John Watson said Wednesday.

Measures of this sort have been pushed in prior years by environmental groups and activist investors, but now more traditional shareholders are putting their muscle behind the proposals as concern spreads over the effect that policies to mitigate climate change could have on energy company financials.

Those who led the filing of the Exxon resolution were the Church Commissioners for England and the New York State Common Retirement Fund, along with others. The lead filers for the Chevron resolution were Hermes Equity Ownership Services and Wespath Investment Management, a division of the United Methodist Church.

Investors representing more than $10 trillion in assets pledged to support the climate proxy measures, which assert that Exxon, Chevron and other big oil companies should be transparent about how their drilling prospects would suffer if the world turned away from carbon-intensive fuels, including crude oil.

The New York State Common Retirement Fund, Norway's sovereign-wealth fund, the Church of England, Calpers and others actively campaigned for the proposals.

In December, nearly 200 countries pledged in Paris to hold the rise in average global temperatures to less than 2 degrees Celsius above preindustrial levels. This is the yardstick many shareholder resolutions have used to urge the companies to take greater action and show how such a goal will affect their business units.

Supporters of that effort say more investors want to see how companies are preparing for climate change impacts. A stress-test measure at Occidental Petroleum Corp. received 49% of votes, and similar proposals passed overwhelmingly last year at two other big oil companies, BP PLC and Royal Dutch Shell PLC.

In a report on climate released this month, Total SA, the French energy company, said it has reduced activity in Canada's oil-sands region and is avoiding Arctic exploration over concerns that some fossil fuels will have to stay in the ground if the goals set forth in Paris are achieved.

ConocoPhillips and Statoil ASA have issued projections that global oil demand could fall significantly by 2040 if measures to reduce climate risk are put in place. By contrast, Exxon's projection for global oil demand in that year is 28% higher than peers' forecasts.

"There's an awful lot of shareholder disquiet about how Exxon is approaching climate change," said Edward Mason, head of responsible investment for the Church Commissioners for England, which manages the assets of the Church of England.

At the Exxon annual meeting, shareholders did approve one shareholder proposal, giving investors greater power to propose director candidates . None of eight proposed shareholder measures passed at Chevron's meeting.

Amy Harder contributed to this article.

Write to Bradley Olson at Bradley.Olson@wsj.com and Nicole Friedman at nicole.friedman@wsj.com

Credit: By Bradley Olson and Nicole Friedman

Subject: Shareholder voting; Emissions; Carbon; Investments; Decision making; Climate change; Proposals; Stockholders; Natural gas utilities

Location: United States--US

People: Tillerson, Rex W

Company / organization: Name: New York State Common Retirement Fund; NAICS: 523991; Name: Public Employees Retirement System-California; NAICS: 525110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: May 25, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1791128831

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1791128831?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Business News: Climate-Change Tests Voted Down --- Investors at Chevron, Exxon reject proposals to assess risks of fight against global warming

Author: Olson, Bradley; Friedman, Nicole

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]26 May 2016: B.3.

ProQuest document link

Abstract:

Separately on Wednesday, the White House said it planned to propose a new rule that companies with federal contracts must disclose whether they share information about the risks that a changing climate could pose to their operations, as well as their goals to reduce greenhouse gas emissions.

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Shareholders at Exxon Mobil Corp. and Chevron Corp. narrowly voted down resolutions calling for stress tests to determine the risk that efforts to curb climate change pose to their businesses.

Despite the defeat, the proposals drew more support than any contested climate-related votes in the history of the two biggest U.S. oil and gas companies.

Preliminary results showed 41% support from Chevron investors that cast ballots and 38% support at Exxon, an indication that more mainstream shareholders such as pension funds, sovereign-wealth funds and asset managers are starting to take more seriously the threat of a global weaning from fossil fuels.

The number of shareholders supporting the climate-risk measures "is significant, and it will continue to grow," said Beth Richtman, investment manager at the California Public Employees' Retirement System, which manages about $290 billion. Calpers owns about $1 billion worth of Exxon shares and approximately $600 million in Chevron stock.

"There's a groundswell of share owners who are going to keep pushing this forward," she said. "We need to see them rise to the realm of best practices in terms of climate risk reporting, and we're not there yet."

While the shareholder votes aren't binding, supporters of the measures declared victory even in defeat after the oil companies' annual shareholder meetings Wednesday.

"You have to read this as a shot across the bow of the industry," said Andrew Logan, director of the oil and gas program at Ceres, a Boston-based nonprofit group that advocated for the proposals.

Exxon and Chevron had fought to keep the measures off the ballot, a push that the U.S. Securities and Exchange Commission rebuffed.

Separately on Wednesday, the White House said it planned to propose a new rule that companies with federal contracts must disclose whether they share information about the risks that a changing climate could pose to their operations, as well as their goals to reduce greenhouse gas emissions.

That rule, expected to be completed this fall, would affect most federal contracts. The U.S. government is a major buyer of oil products, including jet fuel and diesel used by the military.

Exxon Chief Executive Rex Tillerson said Wednesday the company includes in its energy outlook a proxy cost on carbon.

"It's really the only way we know to accommodate in our financial decision-making the impacts of future policies that are yet to be formulated," he said. He added that most Exxon projects are either too short-term or too large for the theoretical cost of carbon they use in planning purposes to affect their decision-making.

Exxon has also noted it published a 2014 report on managing climate risks that said none of the company's oil and gas holdings are threatened by a global push to reduce carbon emissions.

Chevron told investors that the proposed climate measure was flawed. Efforts to limit warming could allow some energy producers, such as those who sell natural gas, to benefit while others fall out of favor, including coal-mining companies, Chevron said. The company is a large producer of natural gas and factors in a theoretical future price of carbon when deciding which projects to sanction, making a stress test unnecessary, the company said.

"We don't think this proposal will advance our thinking," Chevron Chief Executive John Watson said Wednesday.

Measures of this sort have been pushed in prior years by environmental groups and activist investors, but now more traditional shareholders are putting their muscle behind the proposals.

Those who led the filing of the Exxon resolution were the Church Commissioners for England and the New York State Common Retirement Fund, along with others. The lead filers for the Chevron resolution were Hermes Equity Ownership Services and Wespath Investment Management, a division of the United Methodist Church.

Investors representing more than $10 trillion in assets pledged to support the climate proxy measures, which assert that Exxon, Chevron and other big oil companies should be transparent about how their drilling prospects would suffer if the world turned away from carbon-intensive fuels, including crude oil.

---

Amy Harder contributed to this article.

Credit: By Bradley Olson and Nicole Friedman

Subject: Shareholder voting; Proposals; Climate change; Stockholders

Location: United States--US

People: Tillerson, Rex W

Company / organization: Name: Public Employees Retirement System-California; NAICS: 525110; Name: Chevron Corp; NAICS: 211111, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2016

Publication date: May 26, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1791224424

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1791224424?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Seeking Injunction Against Climate-Change Investigation; Oil company want to block a Massachusetts subpoena seeking documents dating back 40 years

Author: Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]15 June 2016: n/a.

ProQuest document link

Abstract:

In its Wednesday filing, Exxon said the probes are "the culmination of years of planning," referring to a 2012 meeting in which environmental activists discussed a strategy that included using the subpoena power of attorneys general to obtain records of fossil fuel companies.

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Exxon Mobil Corp. is seeking an injunction against the Massachusetts attorney general, alleging that a wide-ranging investigation into the oil company is politically motivated and violates its constitutional rights.

Exxon, based in Irving, Texas, wants to block a Massachusetts subpoena that sought documents relating to climate change science research and investor communications on the topic dating back 40 years. The company filed its motion on Wednesday in a federal court in the Northern District of Texas in Fort Worth.

New York Attorney General Eric Schneiderman, Massachusetts Attorney General Maura Healey and U.S. Virgin Islands Attorney General Claude Walker are all investigating whether Exxon misrepresented its understanding of climate change to investors and the public. The company already has turned over hundreds of thousands of pages of documents to Mr. Schneiderman.

Related

* Exxon Fires Back at Climate-Change Probe

Exxon, in its court filing, called Ms. Healey's allegations "nothing more than a weak pretext for an unlawful exercise of government power to further political objectives."

Exxon also said that the subpoena violates its right to free speech, Fourth Amendment protection against unreasonable search and seizure and the 14th Amendment's equal protection clause.

"Our investigation is based, not on speculation, but on inconsistencies about climate change in Exxon documents which have been made public," Ms. Healey's office said.

The 33-page injunction filing is the company's most sharply worded rebuttal so far to investigations launched last year into what Exxon has known about climate change since the 1970s.

Republican lawmakers have criticized the probes into Exxon by Democratic state attorneys general, a development that shows the degree to which the matter has become political football.

The initial probe began last year when Mr. Schneiderman subpoenaed Exxon. It took on renewed urgency in March when he, Ms. Healey and Mr. Walker joined former Vice President Al Gore and several state representatives gathered to discuss their work to examine the company's record.

In its Wednesday filing, Exxon said the probes are "the culmination of years of planning," referring to a 2012 meeting in which environmental activists discussed a strategy that included using the subpoena power of attorneys general to obtain records of fossil fuel companies.

Participants in the legal gathering, which took place in La Jolla, Calif., also discussed how such documents could pave the way for litigation akin to that leveled successfully against tobacco companies for their role in researching and misconstruing the risks of smoking. Exxon and its supporters dismiss the comparison with tobacco.

Write to Bradley Olson at Bradley.Olson@wsj.com

Credit: By Bradley Olson

Subject: Attorneys general; Climate change; Injunctions; Subpoenas

Location: Texas Massachusetts Fort Worth Texas New York

People: Gore, Albert Jr

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jun 15, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1796859076

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1796859076?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Business News: Exxon Seeks to Block State's Order for Files

Author: Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]16 June 2016: B.4.

ProQuest document link

Abstract:

Exxon said the probes are "the culmination of years of planning," referring to a 2012 meeting in which environmental activists discussed using the subpoena power of attorneys general to obtain records.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. is seeking an injunction against the Massachusetts attorney general, alleging that a wide-ranging investigation into the oil company is politically motivated and violates its constitutional rights.

Exxon, based in Irving, Texas, wants to block a Massachusetts subpoena that sought documents relating to climate change science research and investor communications on the topic dating back 40 years. The company filed its motion on Wednesday in a federal court in the Northern District of Texas in Fort Worth.

New York Attorney General Eric Schneiderman, Massachusetts Attorney General Maura Healey and U.S. Virgin Islands Attorney General Claude Walker are all investigating whether Exxon misrepresented its understanding of climate change to investors and the public. The company already has turned over hundreds of thousands of pages of documents to Mr. Schneiderman.

Exxon, in its court filing, called Ms. Healey's allegations "nothing more than a weak pretext for an unlawful exercise of government power to further political objectives."

Exxon also said that the subpoena violates its right to free speech, Fourth Amendment protection against unreasonable search and seizure and the 14th Amendment's equal protection clause.

"Our investigation is based, not on speculation, but on inconsistencies about climate change in Exxon documents," Ms. Healey's office said.

The 33-page injunction filing is the company's most sharply worded rebuttal so far to investigations launched last year into what Exxon has known about climate change since the 1970s.

Republican lawmakers have criticized the probes by Democratic state attorneys general, a development that shows the degree to which the matter has become political football.

Exxon said the probes are "the culmination of years of planning," referring to a 2012 meeting in which environmental activists discussed using the subpoena power of attorneys general to obtain records.

Credit: By Bradley Olson

Subject: Climate change; Supreme Court decisions

Location: Massachusetts

People: Healey, Maura T

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.4

Publication year: 2016

Publication date: Jun 16, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1797030278

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1797030278?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Evacuates Workers Amid California Wildfire; Blaze erupted Wednesday in the Refugio Canyon area of Santa Barbara county

Author: Molinski, Dan

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 June 2016: n/a.

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Exxon normally uses the Las Flores Canyon facility to receive crude oil produced from wells offshore Santa Barbara and then send it along by pipeline to refineries in other parts of California.

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Exxon Mobil Corp. said it has evacuated nonessential personnel from its Las Flores Canyon processing plant in southern California as a fast-moving wildfire expanded Thursday.

The so-called Sherpa fire that broke out Wednesday afternoon in the Refugio Canyon area of Santa Barbara county by early Thursday had charred some 1,100 acres and forced the shutdown of parts of Highway 101, according to the county. Exxon's facility is located about 15 miles from the city of Santa Barbara.

"Employees who remain on site are involved in various fire-protection activities," Exxon spokesman Todd Spitler said in an email.

Exxon normally uses the Las Flores Canyon facility to receive crude oil produced from wells offshore Santa Barbara and then send it along by pipeline to refineries in other parts of California. But the rupture last year of an oil pipeline Exxon was using forced it to halt crude production as pipeline repairs continue.

Without any way to transport its crude oil, some 425,000 barrels of crude oil were left stranded in two storage tanks at the Las Canyon Flores facility. But last month Exxon began hauling the crude away in trucks after Santa Barbara county expressed concern about "the risks associated with long-term storage of oil" in the environmentally sensitive region.

Write to Dan Molinski at Dan.Molinski@wsj.com

Credit: By Dan Molinski

Subject: Pipelines; Crude oil

Location: California Santa Barbara California

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jun 16, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1797229121

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1797229121?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon's Inquisitors Feel the Heat; Court filings reveal the true aim of this 'fraud' case: silencing conservatives.

Author: Strassel, Kimberley A

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 June 2016: n/a.

ProQuest document link

Abstract:

New York Attorney General Eric Schneiderman is pursuing Exxon under his state's sweeping Martin Act, which covers securities fraud. Yet at a recent panel discussion in New York, Columbia Law Professor Merritt B. Fox noted that Exxon's actions were irrelevant in a market already "well supplied with information about climate change."

Links: 360 Link to Full Text

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The first thing to know about the crusade against Exxon by state attorneys general is that it isn't about the law. The second thing to know is that it isn't even about Exxon. What these liberal prosecutors really want is to shut down a universe of their most-hated ideological opponents.

That became startlingly clear this week, with Exxon's latest filing in federal court. The oil company revealed that it has received another subpoena for documents, this one from Massachusetts Attorney General Maura Healey. But Ms. Healey, whose fervor exceeds her political sense, gives away the game.

The 17 attorneys general participating in this cause have always been careful to identify Exxon as their only target. It's easier to accuse a big, bad oil company of nefarious deeds, so they make the bogus claim that Exxon somehow "defrauded" the public and its shareholders by engaging in "climate denial." All the better if they can beat Exxon into cutting a giant check to settle any future charges--a payoff for their states (and for the trial lawyers helping them).

But the Healey subpoena shows that Exxon is a front. The real target is a broad array of conservative activist groups that are highly effective at mobilizing the grass-roots and countering liberal talking points--and that therefore must (as the left sees things) be muzzled. This is clear from the crazy list of organizations Ms. Healey asked for information about in her subpoena. She demanded that Exxon turn over decades of correspondence with any of them.

Take Americans for Prosperity. AFP confirms it has never received a dime from Exxon. But its 2.3 million activists nationwide are highly effective in elections, and it receives funding from the left's favorite boogeymen, Charles and David Koch.

Or, closer to home: Ms. Healey named the Beacon Hill Institute, a right-leaning think tank in Boston. My sources confirm Beacon Hill has also never seen Exxon dollars. But it is a perpetual thorn in the side of liberal Massachusetts politicians like Ms. Healey.

Also named: the American Legislative Exchange Council. ALEC doesn't now, and hasn't ever, taken a position on the climate. The group is, however, one of the most powerful forces in the country for free-market legislation, having written hundreds of model bills that states use in their efforts to reduce taxes, cut regulations and reform tort laws. Democratic activists have, for the past five years in particular, waged a vicious campaign to run ALEC out of business, and Ms. Healey is now doing her bit.

The same tactics were on display in a subpoena to Exxon from Virgin Islands Attorney General Claude Walker. He appears to have cut-and-pasted from an anti-Exxon website maintained by Greenpeace, since his subpoena lists the same groups in pretty much the same order. The exercise was so sloppy that Mr. Walker named numerous organizations that have been defunct for years, listed several targets twice, and misidentified others.

The goal of the Exxon probe isn't to protect consumers or help the environment. It's a message: Oppose us, and we will marshal our terrifying government powers to intimidate and threaten you, to force you to spend millions defending yourself, to eat up the time you'd otherwise use speaking out.

The Exxon investigation is "pure harassment," civil-liberties attorney Harvey Silverglate told the Boston Herald this week. "It is outrageous for any law enforcement official," he continued, "to be seeking to win this battle for minds by flexing law enforcement muscle and trying to shut up the other side."

That goal is all the more clear given the dishonesty of the legal claim. New York Attorney General Eric Schneiderman is pursuing Exxon under his state's sweeping Martin Act, which covers securities fraud. Yet at a recent panel discussion in New York, Columbia Law Professor Merritt B. Fox noted that Exxon's actions were irrelevant in a market already "well supplied with information about climate change." He skewered Mr. Schneiderman for pursuing a case "so unlikely" to "be a winner." This was even as he expressed solidarity with concerns about global warming.

The attorneys general are feeling so much pushback that Mr. Schneiderman felt compelled to give a speech last week delineating his own made-up limits on free speech. Groups that question his harassment of them are engaged in "First Amendment opportunism," he said, and any right they claim is trumped, apparently, by his righteous, self-defined calling to pursue "fraud." He clearly sent this memo to his persecutors-in-arms, since Ms. Healey was parroting the same lines this week in response to questions about her subpoena.

The Exxon campaign is only the latest in liberals' broad, coordinated strategy to shut down conservatives. We've seen it in the IRS targeting, the Wisconsin John Doe probe, the campaign against ALEC, the harassment of conservative donors. And the only way to stop it is for targets to speak out--even louder.

Ms. Strassel is the author of "The Intimidation Game: How the Left Is Silencing Free Speech," out next week from Twelve. Write to kim@wsj.com.

Credit: By Kimberley A. Strassel

Subject: Attorneys general; Law enforcement; Climate change; Subpoenas

Location: Massachusetts

Company / organization: Name: Beacon Hill Institute; NAICS: 541720

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jun 16, 2016

column: Potomac Watch

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1797504388

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1797504388?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Two Can Play at Climate 'Fraud'; If Exxon can be sued, why can't Al Gore for exaggerations that help his investments?

Author: Anonymous

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 June 2016: n/a.

ProQuest document link

Abstract:

[...]the AGs' letter points out that, "If Exxon's disclosure is deficient, what of the failure of renewable energy companies to list climate change as a risk?" If climate change turns out to be less serious than advertised, then "'clean energy' companies may become less valuable and some may be altogether worthless," the letter adds.

Links: 360 Link to Full Text

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Eric Schneiderman and Sheldon Whitehouse, call your office. The New York Attorney General and Rhode Island Senator who helped to launch the prosecution of dissent on climate change may not like where their project is headed. Thirteen state Attorneys General have sent a letter pointing out that if minimizing the risks of climate change can be prosecuted as "fraud," then so can statements overstating the dangers of climate change.

That's the news contained in a letter that the Republican AGs of Alabama, Alaska, Arizona, Arkansas, Louisiana, Michigan, Nebraska, Nevada, Oklahoma, South Carolina, Texas, Utah and Wisconsin dispatched to Mr. Schneiderman and other AGs on June 15.

"We think this effort by our colleagues to police the global warming debate through the power of the subpoena is a grave mistake," says the letter. "Using law enforcement authority to resolve a public policy debate undermines the trust invested in our offices and threatens free speech."

It sure does, not least by politicizing fraud prosecutions even more than they already are. Mr. Schneiderman and some 15 other Democratic AGs are targeting only one side of the climate debate--i.e., fossil-fuel companies or think tanks that question climate orthodoxy. Mr. Schneiderman claims that Exxon's disclosure about the risks of climate change has been inadequate, though the oil company has discussed such risks in its 10-K disclosures filed with the Securities and Exchange Commission, among other places.

But the AGs' letter points out that, "If Exxon's disclosure is deficient, what of the failure of renewable energy companies to list climate change as a risk?" If climate change turns out to be less serious than advertised, then "'clean energy' companies may become less valuable and some may be altogether worthless," the letter adds.

Think SolarCity, or investments made by the venture-capital firm Kleiner Perkins Caufield & Byers where Al Gore is a senior partner. Mr. Gore showed up at Mr. Schneiderman's March 29 press conference for AGs United for Clean Power and blamed climate change for the spread of the Zika virus, flooding in the Midwest and Hurricane Sandy. "Every night on the news now it's like a nature hike through the Book of Revelation," Mr. Gore said. These unproven claims arguably mislead investors about the value of clean-energy companies.

The letter from the 13 Republican AGs asks, "Should these statements justify an investigation into all contributions to environmental non-profits by Kleiner Perkins's partners?" They quickly add that they want to undertake no such action. But they deserve credit for pointing out the political Pandora's box that left-wing AGs have opened by "policing viewpoints" on climate change.

We don't think anyone should be prosecuted for engaging in political debate, but progressives have shown (see independent counsels) that they'll cease their abuses only when the same methods are used against them.

Subject: Climate change; Energy industry; Independent counsels

Location: Utah Nevada Arkansas Nebraska Wisconsin Arizona Oklahoma Michigan Louisiana Alaska Texas Alabama New York South Carolina

People: Whitehouse, Sheldon

Company / organization: Name: Kleiner Perkins Caufield & Byers; NAICS: 523910; Name: Securities & Exchange Commission; NAICS: 926150

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jun 19, 2016

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1797805411

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1797805411?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Two Can Play at Climate 'Fraud'; If Exxon can be sued, why can't Al Gore for exaggerations that help his investments?

Author: Anonymous

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 June 2016: n/a.

ProQuest document link

Abstract:

[...]the AGs' letter points out that, "If Exxon's disclosure is deficient, what of the failure of renewable energy companies to list climate change as a risk?" If climate change turns out to be less serious than advertised, then "'clean energy' companies may become less valuable and some may be altogether worthless," the letter adds.

Links: 360 Link to Full Text

Full text:  

Eric Schneiderman and Sheldon Whitehouse, call your office. The New York Attorney General and Rhode Island Senator who helped to launch the prosecution of dissent on climate change may not like where their project is headed. Thirteen state Attorneys General have sent a letter pointing out that if minimizing the risks of climate change can be prosecuted as "fraud," then so can statements overstating the dangers of climate change.

That's the news contained in a letter that the Republican AGs of Alabama, Alaska, Arizona, Arkansas, Louisiana, Michigan, Nebraska, Nevada, Oklahoma, South Carolina, Texas, Utah and Wisconsin dispatched to Mr. Schneiderman and other AGs on June 15.

"We think this effort by our colleagues to police the global warming debate through the power of the subpoena is a grave mistake," says the letter. "Using law enforcement authority to resolve a public policy debate undermines the trust invested in our offices and threatens free speech."

Related Articles

* The Climate Police Blink

* Exxon's Inquisitors Feel the Heat

* Exxon Is Big Tobacco? Tell Me Another

It sure does, not least by politicizing fraud prosecutions even more than they already are. Mr. Schneiderman and some 15 other Democratic AGs are targeting only one side of the climate debate--i.e., fossil-fuel companies or think tanks that question climate orthodoxy. Mr. Schneiderman claims that Exxon's disclosure about the risks of climate change has been inadequate, though the oil company has discussed such risks in its 10-K disclosures filed with the Securities and Exchange Commission, among other places.

But the AGs' letter points out that, "If Exxon's disclosure is deficient, what of the failure of renewable energy companies to list climate change as a risk?" If climate change turns out to be less serious than advertised, then "'clean energy' companies may become less valuable and some may be altogether worthless," the letter adds.

Think SolarCity, or investments made by the venture-capital firm Kleiner Perkins Caufield & Byers where Al Gore is a senior partner. Mr. Gore showed up at Mr. Schneiderman's March 29 press conference for AGs United for Clean Power and blamed climate change for the spread of the Zika virus, flooding in the Midwest and Hurricane Sandy. "Every night on the news now it's like a nature hike through the Book of Revelation," Mr. Gore said. These unproven claims arguably mislead investors about the value of clean-energy companies.

The letter from the 13 Republican AGs asks, "Should these statements justify an investigation into all contributions to environmental non-profits by Kleiner Perkins's partners?" They quickly add that they want to undertake no such action. But they deserve credit for pointing out the political Pandora's box that left-wing AGs have opened by "policing viewpoints" on climate change.

We don't think anyone should be prosecuted for engaging in political debate, but progressives have shown (see independent counsels) that they'll cease their abuses only when the same methods are used against them.

Subject: Climate change; Energy industry; Independent counsels

Location: Utah Nevada Arkansas Nebraska Wisconsin Arizona Oklahoma Michigan Louisiana Alaska Texas Alabama New York South Carolina

People: Whitehouse, Sheldon

Company / organization: Name: Kleiner Perkins Caufield & Byers; NAICS: 523910; Name: Securities & Exchange Commission; NAICS: 926150

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jun 20, 2016

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1797900522

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1797900522?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Crane Collapse at Exxon's Torrance Refinery Injures Three; Production unaffected at 155,000-barrel-a-day refinery

Author: Molinski, Dan

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 June 2016: n/a.

ProQuest document link

Abstract:

Three workers at Exxon Mobil Corp.'s (XOM) refinery in Torrance, Calif. sustained minor injuries Monday when a 300-ton crane collapsed, an official said.

Links: 360 Link to Full Text

Full text:  

Three workers at Exxon Mobil Corp.'s (XOM) refinery in Torrance, Calif. sustained minor injuries Monday when a 300-ton crane collapsed, an official said.

Bob Millea of the Torrance Fire Department said one of the workers hurt his knee but didn't have other specifics on the injuries. He said the refinery continues to operate but said it began flaring gases to stabilize operations as a safety precaution.

Exxon spokesman Todd Spitler confirmed a crane incident occurred, and said the three contract workers were taken to a clinic "for evaluation of minor injuries."

Mr. Spitler also reported an unplanned flaring event Monday morning that he said was necessary "due to a breakdown in some units." But he said the flaring was unrelated to the crane incident, adding that operations and production are normal.

Exxon agreed last year to sell the Torrance refinery to PBF Energy for more than $500 million, but it must first show PBF that the plant is in good, working condition.

The 155,000-barrel-a-day refinery was mostly shut for more than a year after a February 2015 explosion that injured workers. It began re-starting a key gasoline-making unit in May.

Write to Dan Molinski at Dan.Molinski@wsj.com

Credit: By Dan Molinski

Company / organization: Name: PBF Energy; NAICS: 324110; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jun 20, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1797945424

Document URL: https://login.ezproxy.uta.edu/login?url=https://search.proque st.com/docview/1797945424?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Attorneys General Are Right To Pursue Exxon Mobil; Exxon Mobil and the CEI are attempting to argue that the First Amendment protects them from producing the information that can shed light on whether they broke the law.

Author: Anonymous

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 June 2016: n/a.

ProQuest document link

Abstract:

Regarding your June 16 editorial "The Climate Police Blink " about the U.S. Virgin Islands' investigation of Exxon Mobil Corp. and its third-party subpoena to the Competitive Enterprise Institute (CEI), an organization that Exxon has funded, and which questions the science behind climate change:

Links: 360 Link to Full Text

Full text:  

Regarding your June 16 editorial "The Climate Police Blink " about the U.S. Virgin Islands' investigation of Exxon Mobil Corp. and its third-party subpoena to the Competitive Enterprise Institute (CEI), an organization that Exxon has funded, and which questions the science behind climate change: The Virgin Islands, along with other attorneys general, is seeking information to determine whether Exxon Mobil misrepresented what the company privately knew and publicly said about climate change. If it did, that could constitute fraud and violate our laws and the laws of other jurisdictions. Exxon Mobil and CEI are attempting to argue that the First Amendment protects them from producing the information that can shed light on whether they broke the law--a proposition the courts have routinely rejected.

You write that the subpoena demanded CEI's "donor names" and "threatened its donors," but this is incorrect. The CEI subpoena did not request the names of any donors or any information unrelated to Exxon. Its requests regarding funding are limited to funding directly or indirectly by Exxon, and only until 2007. Any suggestion that we have asked for anything akin to a list of current donors is simply false.

Attorney General Claude Earl Walker

Christiansted, St. Thomas

U.S. Virgin Islands

Subject: Attorneys general; Climate change; Funding; Subpoenas

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jun 24, 2016

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1799279757

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1799279757?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Attorneys General Are Right To Pursue Exxon Mobil

Author: Anonymous

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]25 June 2016: A.12.

ProQuest document link

Abstract:

Regarding your June 16 editorial "The Climate Police Blink" about the U.S. Virgin Islands' investigation of Exxon Mobil Corp. and its third-party subpoena to the Competitive Enterprise Institute (CEI), an organization that Exxon has funded, and which questions the science behind climate change:

Links: 360 Link to Full Text

Full text:  

Regarding your June 16 editorial "The Climate Police Blink" about the U.S. Virgin Islands' investigation of Exxon Mobil Corp. and its third-party subpoena to the Competitive Enterprise Institute (CEI), an organization that Exxon has funded, and which questions the science behind climate change: The Virgin Islands, along with other attorneys general, is seeking information to determine whether Exxon Mobil misrepresented what the company privately knew and publicly said about climate change. If it did, that could constitute fraud and violate our laws and the laws of other jurisdictions. Exxon Mobil and CEI are attempting to argue that the First Amendment protects them from producing the information that can shed light on whether they broke the law -- a proposition the courts have routinely rejected. You write that the subpoena demanded CEI's "donor names" and "threatened its donors," but this is incorrect.

The CEI subpoena did not request the names of any donors or any information unrelated to Exxon. Its requests regarding funding are limited to funding directly or indirectly by Exxon, and only until 2007. Any suggestion that we have asked for anything akin to a list of current donors is simply false.

Attorney General Claude Earl Walker

Christiansted, St. Thomas

U.S. Virgin Islands

Subject: Attorneys general; Climate change; Funding; Subpoenas

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.12

Publication year: 2016

Publication date: Jun 25, 2016

Section: Letters to the Editor

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1799324565

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1799324565?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Exxon Touts Carbon Tax to Oil Industry; World's largest publicly owned oil company faces pressure to show concern about climate change

Author: Harder, Amy; Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 June 2016: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. is ramping up its lobbying of other energy companies to support a carbon tax, marking a shift in the oil giant's approach to climate change as the industry faces growing pressure to address the politically charged issue.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. is ramping up its lobbying of other energy companies to support a carbon tax, marking a shift in the oil giant's approach to climate change as the industry faces growing pressure to address the politically charged issue.

Exxon's official position has long been the same--a carbon tax is the best way to address the risks of warming temperatures--but it has done little to actively advocate for that goal in recent years. Lately, Exxon has been making the case with its U.S. counterparts to support a carbon tax, arguing that the industry must not oppose all climate policies, according to people familiar with Exxon's thinking.

Top Exxon officials have been more vocal about their support for a carbon tax and have met with Capitol Hill offices about related legislation, according to the company's recent lobby disclosure forms.

For the past six months, Exxon has been asserting its position more in meetings within trade associations, including the American Petroleum Institute and American Fuel and Petrochemical Manufacturers, according to multiple reports from people who have attended meetings with Exxon officials.

"Of the policy options being considered by governments, we believe a revenue-neutral carbon tax is the best," Suzanne McCarron, the company's vice president of public and government affairs, wrote in May in the Dallas Morning News.

A straightforward carbon tax that is revenue-neutral--meaning other taxes should be lowered to offset the impact--is far preferable to the patchwork of current and potential regulations on the state, federal and international levels, according to Exxon spokesman Alan Jeffers.

Mr. Jeffers said Exxon's position hasn't changed and pointed to a recent House vote on a resolution condemning a carbon tax and the global climate deal in Paris agreed to last December as reasons for the increased debate within the industry.

A carbon tax would put a price on each ton of carbon emitted. Where in the production and consumption process the tax would be levied depends on individual proposals.

"Previously Exxon's positioning on a carbon tax had been passive--'Hey, we're not loving it, but we're not going to get in the way of it,' " said Michael McKenna, president of the energy lobbying firm MWR Strategies, whose clients include oil and refining companies, but not Exxon. "In just the last six months, there's been an uptick in how they are asserting themselves in meetings about how to address this issue."

Exxon, the world's largest publicly owned oil company, arguably faces more pressure than other firms to show concern about climate change. At least two Democratic state attorneys general are investigating whether the oil giant has conspired to cover up what it knows about the impact of global warming.

The U.S. Virgin Islands attorney general agreed to withdraw its subpoena, according to a legal filing Wednesday. Exxon is challenging these investigations and has described them as politically motivated attacks that violate its constitutional rights.

In actively pushing for a carbon tax behind the scenes, Exxon becomes the first major American energy company to move closer to the positions of European energy firms, including Royal Dutch Shell PLC and BP PLC, which have publicly advocated for a price on carbon.

Congress has made it clear it is unlikely to consider a carbon tax soon, especially under Republican control. But some in the energy industry believe a serious debate on additional climate measures isn't far off, especially if Democrat Hillary Clinton wins the White House in November.

The House vote in early June to condemn a carbon tax accentuated a widening rift within the industry over how, or whether, to engage on climate policy. The split is pitting smaller companies, especially domestic refiners, against multinational and European firms.

One senior U.S. oil executive said Exxon, like some other oil and gas companies, could also have a financial motive for supporting a carbon tax. Such a tax would make coal more expensive compared with natural gas. Exxon, beyond its oil business, is the U.S.'s largest natural-gas producer.

Mr. Jeffers, the Exxon spokesman, said his company has invested in gas in anticipation of climate policies that make coal more expensive.

Few, if any, U.S. companies other than Exxon have called for a carbon tax, and many oppose any plan designed to cut emissions. Chevron Corp. CEO John Watson, for example, is one of several outspoken opponents of a carbon tax .

Exxon's shift is unfolding against the backdrop of a landmark deal to cut greenhouse gas emissions struck by roughly 200 nations last December in Paris. Energy companies are also facing increasing pressure from federal regulators, and their own shareholders, to disclose potential business risks from the global efforts to reduce greenhouse gas emissions. Exxon shareholders in May narrowly voted down a resolution calling for a stress test to determine the risk that efforts to curb climate change pose to its business.

Exxon first publicly supported a carbon tax in 2009, presenting it as preferable to cap-and-trade, a market-based system for controlling carbon emissions that the Democratic-controlled Congress then appeared ready to enact. Cap-and-trade died in the Senate, the Republicans later captured Congress, and President Barack Obama has since pursued regulations to cut carbon emissions instead.

Some advocates of strong climate policy are skeptical Exxon's shift signals a deeper change. "We've seen so little movement out of any of their lobbying front groups," said Sen. Sheldon Whitehouse (D., R.I.), who introduced a bill last summer to impose a carbon tax. The measure hasn't advanced in the Senate.

Mr. Whitehouse's staff recently met with Exxon lobbyists, but the senator said, "The meeting was more just an exploratory feeler to see about further conversations."

Write to Amy Harder at amy.harder@wsj.com and Bradley Olson at Bradley.Olson@wsj.com

Related

* California Probes Major Oil Refiners

Credit: By Amy Harder and Bradley Olson

Subject: Economic models; Carbon; Meetings; Environmental policy; Climate change; Energy industry; Natural gas utilities; Environmental tax

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: American Fuel & Petrochemical Manufacturers; NAICS: 813910; Name: Dallas Morning News; NAICS: 511110; Name: American Petroleum Institute; NAICS: 813910, 541820

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jun 30, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1800384634

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1800384634?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Says 2nd Well Confirms Major Offshore Guyana Discovery; Oil giant initially unveiled the discovery in May 2015

Author: Stynes, Tess

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 June 2016: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. said a second exploration well roughly 120 miles off the coast of Guyana confirms a "world class" discovery of high-quality oil in the Stabroek block.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. said a second exploration well roughly 120 miles off the coast of Guyana confirms a "world class" discovery of high-quality oil in the Stabroek block.

The Irving, Texas, oil giant initially unveiled the discovery of massive offshore oil and gas deposits off the coast of the small South American nation in May 2015.

On Thursday, Exxon estimated potential recoverable resources of between 800 million oil-equivalent barrels and 1.4 billion oil-equivalent barrels.

Exxon said the Liza 2 well, located about two miles from the Liza 1 well, was drilled to 17,963 feet in 5,551 feet of water. The Liza 2 well encountered encountered more than 190 feet (58 meters) of oil-bearing sandstone reservoirs.

Exxon Mobil affiliate Esso Exploration and Production Guyana Ltd. has a 45% interest the Stabroek block and is the operator on the project. Hess Corp. has a 30% interest in the project and CNOOC Ltd. has a 25% interest.

Hess shares rose 3% to $59.50, Exxon shares eased 21 cents to $92.25, and Cnooc's American depositary shares were inactive in recent premarket trading.

Write to Tess Stynes at tess.stynes@wsj.com

Credit: By Tess Stynes

Location: Texas Guyana

Company / organization: Name: CNOOC Ltd; NAICS: 211111; Name: Hess Corp; NAICS: 447110, 324110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jun 30, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1800425465

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1800425465?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

California Attorney General Investigating Major Oil Refiners; The state subpoenaed companies including Exxon Mobil, Chevron and Tesoro to explore whether they withheld supply to boost gas prices

Author: Olson, Bradley; Harder, Amy

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 June 2016: n/a.

ProQuest document link

Abstract:

The scope of the investigation centers on refinery shutdowns according to people familiar with the matter. Since 2012, several fires have knocked big plants offline.

Links: 360 Link to Full Text

Full text:  

California's attorney general has issued subpoenas to major oil refiners as part of an investigation into whether the companies artificially raised retail gasoline prices in the state, according to people familiar with the matter.

The subpoenas, sent in late May to Tesoro Corp., Chevron Corp., Exxon Mobil Corp. and others, seeks information about trading, maintenance and repair activities at the companies since 2014.

The document requests from Attorney General Kamala Harris, a Democrat who is running for a U.S. Senate seat in November, focus on whether the companies withheld supply in a way that lifted prices, the people said.

A spokeswoman for Ms. Harris said she couldn't comment on an ongoing investigation.

Officials at the companies that received subpoenas, which also included Royal Dutch Shell PLC and Phillips 66, either declined to comment or referred questions to industry trade groups.

A Valero Energy Corp. spokeswoman said the company would "respond accordingly."

"It is important to note that there are many factors that determine the price of gasoline," said Destin Singleton, a spokeswoman for Tesoro, the state's second-largest refiner. "These include the cost of crude oil, distribution and marketing costs, refining costs and federal and state taxes. Market conditions, such as supply and demand, determine the price that consumers pay at the pump."

The scope of the investigation centers on refinery shutdowns according to people familiar with the matter. Since 2012, several fires have knocked big plants offline. Coupled with temporary closures for maintenance activities, the lack of supply led to several pronounced price spikes.

While some industry critics such as Consumer Watchdog have suggested that the shutdowns have the appearance of a conspiracy, and have made calls for greater industry transparency, the subpoenas don't articulate that rationale, the people said.

The American Fuel and Petrochemical Manufacturers, which represents U.S. refiners, said it wasn't aware of the subpoenas but downplayed the significance of an investigation, noting it wasn't the first of its kind.

"California gasoline prices have been investigated repeatedly and never has there been any finding of inappropriate action or price collusion," said Chet Thompson, president of the organization. "We are confident that this will be the case again."

California, drivers generally face some of the highest gasoline prices in the U.S. Drivers in the state current pay $2.98 per gallon on average, compared with the national average of $2.33, according to U.S. Energy Information Administration data.

Pump prices in the state haven't fallen as much as elsewhere in the country in the wake of the worst oil crash in decades. So far this year, a gallon of regular gasoline has cost an average of 64 cents higher in the state than the U.S. average. The average difference between 2000 and 2010 was about 25 cents, according to the U.S. Energy Information Administration.

The state's high prices have long been a politically charged topic. Industry officials have asserted that their hands are tied due to the requirements for low-pollution gasoline, saying they make it impossible to pipe in refined products from nearby states that would reduce prices.

Critics have alleged that refiners are colluding to limit supply and manipulate prices, noting that consolidation in the industry has left the market in the hands of a few companies. Chevron and Tesoro control about half of California's refining capacity.

The gas-price problem grew more pitched last year after a February 2015 explosion at an Exxon plant. Most of the production at the Los Angeles-area refinery has been offline since.

Write to Bradley Olson at Bradley.Olson@wsj.com and Amy Harder at amy.harder@wsj.com

Read More

* California Restores Rule to Cut Carbon in Fuel by 10% (Sept. 25, 2015)

* Refinery Woes Stall Gasoline Price Drops (Aug. 23, 2015)

* Explosion at Exxon Mobil Refinery Raises Gas-Price Fears (Feb. 18, 2015)

Credit: By Bradley Olson and Amy Harder

Subject: Price increases; Repair & maintenance; Gasoline prices; Attorneys general

Location: California United States--US

People: Harris, Kamala

Company / organization: Name: Consumer Watchdog; NAICS: 813319; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Senate; NAICS: 921120; Name: American Fuel & Petrochemical Manufacturers; NAICS: 813910; Name: Valero Energy Corp; NAICS: 486210, 324110, 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Chevron Corp; NAICS: 324110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jun 30, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1800519308

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1800519308?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Touts Carbon Tax to Rivals --- Advocacy of measure reflects growing pressure to address climate change

Author: Harder, Amy; Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]01 July 2016: B.6.

ProQuest document link

Abstract:

Exxon Mobil Corp. is ramping up its lobbying of other energy companies to support a carbon tax, marking a shift in the oil giant's approach to climate change as the industry faces growing pressure to address the politically charged issue.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. is ramping up its lobbying of other energy companies to support a carbon tax, marking a shift in the oil giant's approach to climate change as the industry faces growing pressure to address the politically charged issue.

Exxon's official position has long been the same--a carbon tax is the best way to address the risks of warming temperatures--but it has done little to actively advocate for that goal in recent years. Lately, Exxon has been making the case with its U.S. counterparts to support a carbon tax, arguing that the industry must not oppose all climate policies, according to people familiar with Exxon's thinking.

Top Exxon officials have been more vocal about their support for a carbon tax and have met with Capitol Hill offices about related legislation, according to the company's recent lobby disclosure forms.

For the past six months, Exxon has been asserting its position more in meetings within trade associations, including the American Petroleum Institute and American Fuel and Petrochemical Manufacturers, according to multiple reports from people who have attended meetings with Exxon officials.

"Of the policy options being considered by governments, we believe a revenue-neutral carbon tax is the best," Suzanne McCarron, the company's vice president of public and government affairs, wrote in May in the Dallas Morning News.

A straightforward carbon tax that is revenue-neutral--meaning other taxes should be lowered to offset the impact--is far preferable to the patchwork of current and potential regulations on the state, federal and international levels, according to Exxon spokesman Alan Jeffers.

Mr. Jeffers said Exxon's position hasn't changed and pointed to a recent House vote on a resolution condemning a carbon tax and the global climate deal in Paris agreed to last December as reasons for the increased debate within the industry.

A carbon tax would put a price on each ton of carbon emitted. Where in the production and consumption process the tax would be levied depends on individual proposals.

"Previously Exxon's positioning on a carbon tax had been passive--'Hey, we're not loving it, but we're not going to get in the way of it,' " said Michael McKenna, president of the energy lobbying firm MWR Strategies, whose clients include oil and refining companies, but not Exxon. "In just the last six months, there's been an uptick in how they are asserting themselves in meetings about how to address this issue."

Exxon, the world's largest publicly owned oil company, arguably faces more pressure than other firms to show concern about climate change. At least two Democratic what it knows about the impact of global warming.

The U.S. Virgin Islands attorney general agreed to withdraw its subpoena, according to a legal filing Wednesday. Exxon is challenging these investigations and has described them as politically motivated attacks that violate its constitutional rights.

In actively pushing for a carbon tax behind the scenes, Exxon becomes the first major American energy company to move closer to the positions of European energy firms, including Royal Dutch Shell PLC and BP PLC, which have publicly advocated for a price on carbon.

Congress has made it clear it is unlikely to consider a carbon tax soon, especially under Republican control. But some in the energy industry believe a serious debate on additional climate measures isn't far off, especially if Democrat Hillary Clinton wins the White House in November.

The House vote in early June to condemn a carbon tax accentuated a widening rift within the industry over how, or whether, to engage on climate policy. The split is pitting smaller companies, especially domestic refiners, against multinational and European firms.

One senior U.S. oil executive said Exxon, like some other oil and gas companies, could also have a financial motive for supporting a carbon tax. Such a tax would make coal more expensive compared with natural gas. Exxon, beyond its oil business, is the U.S.'s largest natural-gas producer.

Mr. Jeffers, the Exxon spokesman, said his company has invested in gas in anticipation of climate policies that make coal more expensive.

Few, if any, U.S. companies other than Exxon have called for a carbon tax, and many oppose any plan designed to cut emissions. Chevron Corp. CEO John Watson, for example, .

Exxon's shift is unfolding against the backdrop of a landmark deal to cut greenhouse gas emissions struck by roughly 200 nations last December in Paris. Energy companies are also facing increasing pressure from federal regulators, and their own shareholders, to disclose potential business risks from the global efforts to reduce greenhouse gas emissions. Exxon shareholders in May narrowly that efforts to curb climate change pose to its business.

Exxon first publicly supported a carbon tax in 2009, presenting it as preferable to cap-and-trade, a market-based system for controlling carbon emissions that the Democratic-controlled Congress then appeared ready to enact. Cap-and-trade died in the Senate, the Republicans later captured Congress, and President Barack Obama has since pursued regulations to cut carbon emissions instead.

Some advocates of strong climate policy are skeptical Exxon's shift signals a deeper change. "We've seen so little movement out of any of their lobbying front groups," said Sen. Sheldon Whitehouse (D., R.I.), who introduced a bill last summer to impose a carbon tax. The measure hasn't advanced in the Senate.

Mr. Whitehouse's staff recently met with Exxon lobbyists, but the senator said, "The meeting was more just an exploratory feeler to see about further conversations."

Write to Amy Harder at amy.harder@wsj.com and Bradley Olson at

Credit: By Amy Harder and Bradley Olson

Subject: Carbon; Environmental tax

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.6

Publication year: 2016

Publication date: Jul 1, 2016

Section: Business & Tech

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1800595819

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1800595819?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Touts Carbon Tax to Oil Industry; World's largest publicly owned oil company faces pressure to show concern about climate change

Author: Harder, Amy; Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 July 2016: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. is ramping up its lobbying of other energy companies to support a carbon tax, marking a shift in the oil giant's approach to climate change as the industry faces growing pressure to address the politically charged issue.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. is ramping up its lobbying of other energy companies to support a carbon tax, marking a shift in the oil giant's approach to climate change as the industry faces growing pressure to address the politically charged issue.

Exxon's official position has long been the same--a carbon tax is the best way to address the risks of warming temperatures--but it has done little to actively advocate for that goal in recent years. Lately, Exxon has been making the case with its U.S. counterparts to support a carbon tax, arguing that the industry must not oppose all climate policies, according to people familiar with Exxon's thinking.

Top Exxon officials have been more vocal about their support for a carbon tax and have met with Capitol Hill offices about related legislation, according to the company's recent lobby disclosure forms.

For the past six months, Exxon has been asserting its position more in meetings within trade associations, including the American Petroleum Institute and American Fuel and Petrochemical Manufacturers, according to multiple reports from people who have attended meetings with Exxon officials.

"Of the policy options being considered by governments, we believe a revenue-neutral carbon tax is the best," Suzanne McCarron, the company's vice president of public and government affairs, wrote in May in the Dallas Morning News.

A straightforward carbon tax that is revenue-neutral--meaning other taxes should be lowered to offset the impact--is far preferable to the patchwork of current and potential regulations on the state, federal and international levels, according to Exxon spokesman Alan Jeffers.

Mr. Jeffers said Exxon's position hasn't changed and pointed to a recent House vote on a resolution condemning a carbon tax and the global climate deal in Paris agreed to last December as reasons for the increased debate within the industry.

A carbon tax would put a price on each ton of carbon emitted. Where in the production and consumption process the tax would be levied depends on individual proposals.

"Previously Exxon's positioning on a carbon tax had been passive--'Hey, we're not loving it, but we're not going to get in the way of it,' " said Michael McKenna, president of the energy lobbying firm MWR Strategies, whose clients include oil and refining companies, but not Exxon. "In just the last six months, there's been an uptick in how they are asserting themselves in meetings about how to address this issue."

Exxon, the world's largest publicly owned oil company, arguably faces more pressure than other firms to show concern about climate change. At least two Democratic state attorneys general are investigating whether the oil giant has conspired to cover up what it knows about the impact of global warming.

The U.S. Virgin Islands attorney general agreed to withdraw its subpoena, according to a legal filing Wednesday. Exxon is challenging these investigations and has described them as politically motivated attacks that violate its constitutional rights.

In actively pushing for a carbon tax behind the scenes, Exxon becomes the first major American energy company to move closer to the positions of European energy firms, including Royal Dutch Shell PLC and BP PLC, which have publicly advocated for a price on carbon.

Congress has made it clear it is unlikely to consider a carbon tax soon, especially under Republican control. But some in the energy industry believe a serious debate on additional climate measures isn't far off, especially if Democrat Hillary Clinton wins the White House in November.

The House vote in early June to condemn a carbon tax accentuated a widening rift within the industry over how, or whether, to engage on climate policy. The split is pitting smaller companies, especially domestic refiners, against multinational and European firms.

One senior U.S. oil executive said Exxon, like some other oil and gas companies, could also have a financial motive for supporting a carbon tax. Such a tax would make coal more expensive compared with natural gas. Exxon, beyond its oil business, is the U.S.'s largest natural-gas producer.

Mr. Jeffers, the Exxon spokesman, said his company has invested in gas in anticipation of climate policies that make coal more expensive.

Few, if any, U.S. companies other than Exxon have called for a carbon tax, and many oppose any plan designed to cut emissions. Chevron Corp. CEO John Watson, for example, is one of several outspoken opponents of a carbon tax .

Exxon's shift is unfolding against the backdrop of a landmark deal to cut greenhouse gas emissions struck by roughly 200 nations last December in Paris. Energy companies are also facing increasing pressure from federal regulators, and their own shareholders, to disclose potential business risks from the global efforts to reduce greenhouse gas emissions. Exxon shareholders in May narrowly voted down a resolution calling for a stress test to determine the risk that efforts to curb climate change pose to its business.

Exxon first publicly supported a carbon tax in 2009, presenting it as preferable to cap-and-trade, a market-based system for controlling carbon emissions that the Democratic-controlled Congress then appeared ready to enact. Cap-and-trade died in the Senate, the Republicans later captured Congress, and President Barack Obama has since pursued regulations to cut carbon emissions instead.

Some advocates of strong climate policy are skeptical Exxon's shift signals a deeper change. "We've seen so little movement out of any of their lobbying front groups," said Sen. Sheldon Whitehouse (D., R.I.), who introduced a bill last summer to impose a carbon tax. The measure hasn't advanced in the Senate.

Mr. Whitehouse's staff recently met with Exxon lobbyists, but the senator said, "The meeting was more just an exploratory feeler to see about further conversations."

Write to Amy Harder at amy.harder@wsj.com and Bradley Olson at Bradley.Olson@wsj.com

Related

* California Probes Major Oil Refiners

Credit: By Amy Harder and Bradley Olson

Subject: Economic models; Carbon; Meetings; Environmental policy; Climate change; Energy industry; Natural gas utilities; Environmental tax

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: American Fuel & Petrochemical Manufacturers; NAICS: 813910; Name: Dallas Morning News; NAICS: 511110; Name: American Petroleum Institute; NAICS: 813910, 541820

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jul 1, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1800599898

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1800599898?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

WSJ Exxon Touts Carbon Tax to Rivals --- Advocacy of measure reflects growing pressure to address climate change

Author: Harder, Amy; Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]01 July 2016: B.6. [Duplicate]

ProQuest document link

Abstract:

Exxon Mobil Corp. is ramping up its lobbying of other energy companies to support a carbon tax, marking a shift in the oil giant's approach to climate change as the industry faces growing pressure to address the politically charged issue.

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Exxon Mobil Corp. is ramping up its lobbying of other energy companies to support a carbon tax, marking a shift in the oil giant's approach to climate change as the industry faces growing pressure to address the politically charged issue.

Exxon's official position has long been the same -- a carbon tax is the best way to address the risks of warming temperatures -- but it has done little to actively advocate for that goal in recent years. Lately, Exxon has been making the case with its U.S. counterparts to support a carbon tax, arguing that the industry must not oppose all climate policies, according to people familiar with Exxon's thinking.

Top Exxon officials have been more vocal about their support for a carbon tax and have met with Capitol Hill offices about related legislation, according to the company's recent lobby disclosure forms.

For the past six months, Exxon has been asserting its position more in meetings within trade associations, including the American Petroleum Institute and American Fuel and Petrochemical Manufacturers, according to multiple reports from people who have attended meetings with Exxon officials.

"Of the policy options being considered by governments, we believe a revenue-neutral carbon tax is the best," Suzanne McCarron, the company's vice president of public and government affairs, wrote in May in the Dallas Morning News.

A straightforward carbon tax that is revenue-neutral -- meaning other taxes should be lowered to offset the impact -- is far preferable to the patchwork of current and potential regulations on the state, federal and international levels, according to Exxon spokesman Alan Jeffers.

Mr. Jeffers said Exxon's position hasn't changed and pointed to a recent House vote on a resolution condemning a carbon tax and the global climate deal in Paris agreed to last December as reasons for the increased debate within the industry.

A carbon tax would put a price on each ton of carbon emitted. Where in the production and consumption process the tax would be levied depends on individual proposals.

"Previously Exxon's positioning on a carbon tax had been passive -- 'Hey, we're not loving it, but we're not going to get in the way of it,' " said Michael McKenna, president of the energy lobbying firm MWR Strategies, whose clients include oil and refining companies, but not Exxon. "In just the last six months, there's been an uptick in how they are asserting themselves in meetings about how to address this issue."

Exxon, the world's largest publicly owned oil company, arguably faces more pressure than other firms to show concern about climate change. At least two Democratic state attorneys general are investigating whether the oil giant has conspired to cover up what it knows about the impact of global warming.

The U.S. Virgin Islands attorney general agreed to withdraw its subpoena, according to a legal filing Wednesday. Exxon is challenging these investigations and has described them as politically motivated attacks that violate its constitutional rights.

In actively pushing for a carbon tax behind the scenes, Exxon becomes the first major American energy company to move closer to the positions of European energy firms, including Royal Dutch Shell PLC and BP PLC, which have publicly advocated for a price on carbon.

Congress has made it clear it is unlikely to consider a carbon tax soon, especially under Republican control. But some in the energy industry believe a serious debate on additional climate measures isn't far off, especially if Democrat Hillary Clinton wins the White House in November.

The House vote in early June to condemn a carbon tax accentuated a widening rift within the industry over how, or whether, to engage on climate policy. The split is pitting smaller companies, especially domestic refiners, against multinational and European firms.

One senior U.S. oil executive said Exxon, like some other oil and gas companies, could also have a financial motive for supporting a carbon tax. Such a tax would make coal more expensive compared with natural gas. Exxon, beyond its oil business, is the U.S.'s largest natural-gas producer.

Mr. Jeffers, the Exxon spokesman, said his company has invested in gas in anticipation of climate policies that make coal more expensive.

Few, if any, U.S. companies other than Exxon have called for a carbon tax, and many oppose any plan designed to cut emissions. Chevron Corp. CEO John Watson, for example, is one of several outspoken opponents of a carbon tax.

Exxon's shift is unfolding against the backdrop of a landmark deal to cut greenhouse gas emissions struck by roughly 200 nations last December in Paris. Energy companies are also facing increasing pressure from federal regulators, and their own shareholders, to disclose potential business risks from the global efforts to reduce greenhouse gas emissions. Exxon shareholders in May narrowly voted down a resolution calling for a stress test to determine the risk that efforts to curb climate change pose to its business.

Exxon first publicly supported a carbon tax in 2009, presenting it as preferable to cap-and-trade, a market-based system for controlling carbon emissions that the Democratic-controlled Congress then appeared ready to enact. Cap-and-trade died in the Senate, the Republicans later captured Congress, and President Barack Obama has since pursued regulations to cut carbon emissions instead.

Some advocates of strong climate policy are skeptical Exxon's shift signals a deeper change. "We've seen so little movement out of any of their lobbying front groups," said Sen. Sheldon Whitehouse (D., R.I.), who introduced a bill last summer to impose a carbon tax. The measure hasn't advanced in the Senate.

Mr. Whitehouse's staff recently met with Exxon lobbyists, but the senator said, "The meeting was more just an exploratory feeler to see about further conversations."

Write to Amy Harder at amy.harder@wsj.com and Bradley Olson at Bradley.Olson@wsj.com

(See related letters: "Letters to the Editor: Mission Accomplished for Climate Activists " -- WSJ July 13, 2016)

License this article from Dow Jones Reprint Service

Credit: By Amy Harder and Bradley Olson

Subject: Economic models; Carbon; Meetings; Environmental policy; Climate change; Energy industry; Natural gas utilities; Environmental tax

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: American Fuel & Petrochemical Manufacturers; NAICS: 813910; Name: Dallas Morning News; NAICS: 511110; Name: American Petroleum Institute; NAICS: 813910, 541820

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.6

Publication year: 2016

Publication date: Jul 1, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1803263313

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Big Oil Finding Money for Biggest Projects; $36.8 billion project agreed by Chevron, Exxon Mobil and their partners suggests oil's deep freeze might be thawing

Author: Williams, Selina; Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 July 2016: n/a.

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Abstract:

A similar price rally last year had quickly fizzled. Since oil prices started collapsing in the summer of 2014, companies have delayed or canceled about $270 billion in projects through March, including expensive Arctic developments, according to Rystad Energy. Chevron is the project's operator. Since the start of 2015, Chevron and other big oil firms have slashed their budgets by a quarter--exceeding $30 billion overall--and cut more than 30,000 jobs to endure a prolonged period of low prices.

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There are signs the deep freeze in oil-industry spending is beginning to thaw.

Chevron Corp., Exxon Mobil Corp. and several partners on Tuesday committed $37 billion to expand an oil project in Kazakhstan known as Tengiz , one of the biggest investments since crude prices collapsed two years ago.

Last week, BP PLC gave the green light to a multibillion-dollar gas export expansion complex. It follows the U.K. oil giant's announcement in June that it is fast-tracking a major offshore gas discovery in Egypt. Italy's Eni SpA is moving ahead on an Egypt field as well.

In choosing to invest now, the world's biggest energy companies get to benefit from a huge drop in drilling costs that has accompanied the oil-price fall. Pumps, valves, drilling rigs, construction and engineering services, steel and even labor are cheaper because the contractors that provided those services have less work than in the boom years after the financial crisis when oil prices traded around $100 a barrel.

The recent wave of investments may point to confidence in an oil-price recovery--after they collapsed from around $115 a barrel in mid-2014 to a low of $27 in January--but it is still early days.

Big-energy company executives have said they are treating the oil-price rally with caution, warning that as prices rise, investment could kick in from U.S. shale producers and American output could quickly ramp up again. Just on Tuesday, U.S. crude prices dropped almost 5% to $46.60 as traders worried about an uptick in U.S. drilling activity.

A similar price rally last year had quickly fizzled. Since oil prices started collapsing in the summer of 2014, companies have delayed or canceled about $270 billion in projects through March, including expensive Arctic developments, according to Rystad Energy. Great Britain's vote to leave the European Union adds another level of uncertainty, with the effect on markets , oil demand and investment still to be determined.

But the Chevron announcement on Tuesday is "an inflection point," said Jefferies senior oil analyst Jason Gammel, noting that it is the first investment of more than $10 billion this year.

Tengiz is already one of the most profitable projects in the past 40 years. "It's a terrific time to be making this sort of investment," said Todd Levy, Chevron's president for exploration and production in Europe, Eurasia and the Middle East. Chevron is the project's operator.

Since the start of 2015, Chevron and other big oil firms have slashed their budgets by a quarter--exceeding $30 billion overall--and cut more than 30,000 jobs to endure a prolonged period of low prices.

That has forced them to scour the globe for opportunities that meet a very narrow set of criteria: They have to boost production in the years ahead so the companies avoid shrinking, and they have to be profitable at $50 oil.

Since prices began falling, they haven't often been able to find such a sweet spot. Last year, Western oil companies approved just four such major projects, including in the Gulf of Mexico, Norway, Egypt and Ghana. So far in 2016, energy companies have taken the plunge on eight big expensive developments, according to Houston energy investment bank Tudor Pickering Holt & Co. And more are expected this year, the bank said.

Still, these won't come online for years. The first oil from the Tengiz expansion, for instance, won't come until 2022.

Exxon, Chevron, Royal Dutch Shell PLC and BP are turning to U.S. shale wells as well. Those operations require less upfront investment to begin producing but also don't approach the scale or multidecade opportunity of the big projects.

Shale producers such as Pioneer Natural Resources Inc. have begun to add a small number of rigs in anticipation of higher prices at the end of 2016. They have also started tapping a vast pool of wells that were drilled but which have yet to be fracked, a way to keep producing without having to spend as much money.

Oil prices dropped across the board on Tuesday--Brent, the international benchmark, fell to $47.96 a barrel, a 4.3% decline--but the trend is up. Barclays forecast this week that Brent crude prices will average $57 a barrel next year, up from a forecast average of $44 this year. A supply glut that has weighed on prices for two years is easing thanks to outages in Nigeria and Canada and falling output among U.S. shale drillers.

Some oil companies are now able to cover their costs with prices stabilizing around $50 a barrel in recent weeks, analysts said. Their spending cuts are allowing them to meet dividend payments and invest in new projects, Mr. Gammel said.

"It shows that the companies are at a point where they can consider investing in longer-term projects," he said.

Oil companies are typically more comfortable making big investment decisions on future production when prices are stable. Tudor Pickering said it believes more projects will be approved this year, including BP's huge deep-water project in the Gulf of Mexico known as Mad Dog II and Eni's Coral floating liquefied-natural-gas development in Mozambique.

BP declined to say when it would decide on Mad Dog II. Eni said it planned to decide on Coral this year.

Tengiz is among a handful of oil-field projects that are feasible at today's oil prices. Its production costs averaged around $6.50 a barrel over the past five years, according to Mr. Gammel. Some analysts estimate that it has brought Chevron more than $70 billion in revenue, and $40 billion in profits, since 1993, when it became the first foreign oil company to strike a deal with the former Soviet republic.

Write to Selina Williams at selina.williams@wsj.com and Bradley Olson at Bradley.Olson@wsj.com

Related

* For Oil's Outlook, Check the Pump

* Oil Prices Lower as Speculative Investors Exit Market

* Niger Delta Militants Claim More Attacks on Nigerian Oil Infrastructure

Credit: Selina Williams, Bradley Olson

Subject: Drilling; Crude oil prices; Energy industry

Location: United States--US United Kingdom--UK Egypt Kazakhstan

Company / organization: Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Eni SpA; NAICS: 324110, 211111; Name: European Union; NAICS: 926110, 928120; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jul 5, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1801587824

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

The Climate Police Crack-Up; Those Exxon Mobil subpoenas? Never mind.

Author: Anonymous

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 July 2016: n/a.

ProQuest document link

Abstract:

Free-speech advocates have reason to cheer as two state attorneys general have walked back their subpoenas against Exxon Mobil Corp., tacitly admitting that their climate-change harassment lacks a legal basis.

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Free-speech advocates have reason to cheer as two state attorneys general have walked back their subpoenas against Exxon Mobil Corp., tacitly admitting that their climate-change harassment lacks a legal basis.

Virgin Islands AG Claude Walker recently withdrew his subpoena of Exxon Mobil. He was a leader among the 17 AGs charging that the oil giant defrauded shareholders by hiding the truth about global warming. That's hard to prove when the company's climate-change research was published in peer-reviewed journals.

Mr. Walker also targeted some 90 think tanks and other groups in an attempt to punish climate dissent. These groups and others, including these columns, pushed back on First Amendment grounds, and the Competitive Enterprise Institute counter-sued Mr. Walker and demanded sanctions. He pulled his subpoena against CEI last month.

Mr. Walker claimed he is dropping his Exxon subpoena so the U.S. Justice Department can more easily pursue its racketeering charges against the company. But that's glitter on a surrender document. The reason the state AGs chose to pursue Exxon for shareholder fraud is because anyone with legal knowledge knows how difficult it would be for the feds to bring a successful RICO case. To our knowledge, Justice doesn't even have such an investigation underway.

Meantime, Massachusetts AG Maura Healey filed court documents declaring she won't enforce her subpoena against Exxon until the oil giant's countersuits against the AGs are settled. Exxon has sued Ms. Healey in Texas federal court to quash her subpoena as a violation of its First and Fourth Amendment rights. Mrs. Healey clearly sensed the political dangers of dragging her office on a long, anti-free-speech march and is putting the investigation to the side.

That leaves California's Kamala Harris and New York's Eric Schneiderman as the two remaining AGs with outstanding Exxon subpoenas. Mrs. Harris joined this escapade to burnish her progressive bone fides as she runs to replace retiring Senator Barbara Boxer, and her office has done little investigating. Mr. Schneiderman has the most prosecutorial leeway under his state's egregious Martin Act, which doesn't require proof of intent in civil cases. But he has also been on the political defensive for trying to punish policy disagreements.

The climate police would do more for their cause if they spent more time persuading the public on the merits of climate risks and policy. Their resort to abusive government power suggests that they think they have a weak case.

Related Articles

* The Climate Police Blink

* A Misguided Campaign Against Exxon

* Climate Crowd Ignores a Scientific Fraud

Subject: Bills; Subpoenas

Location: California

People: Schneiderman, Eric Harris, Kamala Boxer, Barbara

Company / organization: Name: Department of Justice; NAICS: 922130; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jul 7, 2016

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1802309182

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Mission Accomplished for Climate Activists; Climate activists long for a carbon-reduction policy with teeth, so having Exxon step in as the first major U.S. oil company to join European energy companies in embracing a carbon tax was far better than pursuing a long-shot charge of climate-research deception.

Author: Anonymous

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 July 2016: n/a.

ProQuest document link

Abstract:

If the true goal of the state attorneys general and climate activists who were harassing Exxon (along with other groups producing research challenging the left's climate consensus) was to get past research and into action, mission accomplished at Exxon without risk of an embarrassing loss in court.

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Your editorial "The Climate Police Crack-Up " (July 8) presents the good news for free-speech advocates that two state attorneys general walked back their subpoenas against Exxon Mobil Corp, "tacitly admitting that their climate-change harassment lacks a legal basis."

The bad news of climate-change harassment, however, came a week earlier in "Exxon Touts Carbon Tax to Rivals " (Business & Tech., July 1) that reported Exxon is lobbying other U.S. energy companies to support a tax on carbon emissions.

If the true goal of the state attorneys general and climate activists who were harassing Exxon (along with other groups producing research challenging the left's climate consensus) was to get past research and into action, mission accomplished at Exxon without risk of an embarrassing loss in court.

Climate activists long for a carbon-reduction policy with teeth, so having Exxon step in as the first major U.S. oil company to join European energy companies in embracing a carbon tax was far better than pursuing a long-shot charge of climate-research deception.

The IRS did not have to prove tax-law abuse by conservative groups in 2012 in order to shut them up during President Barack Obama's bid for re-election---prolonged audits did the trick. Banks that have spent billions of dollars in order to comply with onerous Dodd-Frank regulations may now prefer to stick with the regulatory regime they know rather than speak out against it (and anger Democrats).

Harassment of corporate executives and boycotts of their businesses can stop corporate donations to conservative political causes, if other regulatory efforts to stifle free speech come up short.

The state attorneys general claimed that Exxon and climate researchers deliberately understated the likelihood and dire consequences of dramatic climate change. Exxon is advocating a new carbon tax to mitigate the consequences of climate change. Speaking out in favor of a carbon tax covers a multitude of climate sins. It was time to take some of the heat off of Exxon.

Rob Shipley

Orlando, Fla.

Subject: Attorneys general; Research; Carbon; Climate change; Environmental tax

Location: United States--US

People: Obama, Barack

Company / organization: Name: Internal Revenue Service--IRS; NAICS: 921130; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jul 12, 2016

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1803261678

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Last updated: 2017-11-23

Database: The Wall Street Journal

Oil Search Says Exxon Trumps Its Bid for InterOil; Oil Search said Exxon has made an all-scrip offer worth US$45 per InterOil share

Author: Stewart, Robb M; Winning, David

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 July 2016: n/a.

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Abstract:

On Monday, Oil Search said Exxon has made an all-scrip offer worth US$45 per InterOil share, and intends to make a cash payment to InterOil shareholders if InterOil's Elk-Antelope discoveries are found to contain more than 6.2 trillion cubic feet of natural gas.

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MELBOURNE, Australia--Oil Search Ltd. (OSH.AU) said Monday that Exxon Mobil Corp. (XOM) has trumped its offer to buy U.S.-listed InterOil Corp. (IOC), as Papua New Guinea's natural gas riches continue to attract interest from major energy companies even as they cut spending elsewhere.

On Monday, Oil Search said Exxon has made an all-scrip offer worth US$45 per InterOil share, and intends to make a cash payment to InterOil shareholders if InterOil's Elk-Antelope discoveries are found to contain more than 6.2 trillion cubic feet of natural gas. Oil Search said the value of the additional component is US$0.90 per million cubic feet of gas, and would be payable when Elk-Antelope's contingent resources are formally certified.

The takeover tussle pits the two largest producers of crude oil and natural gas in Papua New Guinea, a small Pacific nation that only recently joined the ranks of global energy exporters, in competition for a cluster of large untapped gas deposits that could be developed to feed Asia's demand for clean fuels.

Adding further spice to the bid contest: Exxon and Oil Search are partners in Papua New Guinea's sole operating gas-export facility, the US$19 billion PNG LNG plant.

Oil Search, which based in Port Moresby, the capital of Papua New Guinea, though it is listed in Australia, in May said it had struck a deal with InterOil's board that was at the time worth at least US$2.2 billion. It offered 8.05 of its own shares for each InterOil share, or a cash alternative of up to US$770 million in all, plus a contingent right of A$6.044 a share in cash for each trillion cubic feet equivalent of gas above the same 6.2 trillion cubic feet threshold.

A separate agreement would have seen Oil Search sell on some of InterOil's interests to Total, and increase its stake in the proposed Papua LNG project that would compete with the PNG LNG facility for customers.

Oil Search had hoped to leverage that position in the Papua LNG project as well as a nearly 39% holding in the PNG LNG project to find ways for both operations to collaborate and generate savings that would allow both to expand. It has estimated the potential for up to US$3 billion in capital savings plus US$100 million a year in cost savings.

On Monday, Oil Search said it has until July 21 to decide whether to raise its offer before the U.S.-listed company can formally agree to a deal with Exxon. If Oil Search chooses to walk away then it would receive a US$60 million breakup fee from InterOil, of which Total is entitled to 20%.

Write to Robb M. Stewart at robb.stewart@wsj.com and David Winning at david.winning@wsj.com

Credit: By Robb M. Stewart and David Winning

Subject: LNG; Natural gas; Acquisitions & mergers; Tender offers; Energy industry

Location: United States--US Australia Papua New Guinea

People: Winning, David

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jul 18, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1804776312

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Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon's Bid for InterOil Tops Rival's; Takeover tussle comes as Papua New Guinea's natural gas riches attract interest from major energy companies

Author: Cook, Lynn; Stewart, Robb M; Winning, David

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]18 July 2016: n/a.

ProQuest document link

Abstract:

(July 22, 2016) Exxon Mobil Corp. has made a higher bid for InterOil Corp., a U.S.-listed company with natural-gas assets in Papua New Guinea that local partner Oil Search Ltd. has been trying to buy.

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Full text:  

Corrections & Amplifications:

Oil Search Ltd. holds a 29% stake in the PNG LNG plant in Papua New Guinea. An earlier version of this article incorrectly said the company has a 39% stake. (July 22, 2016)

Exxon Mobil Corp. has made a higher bid for InterOil Corp., a U.S.-listed company with natural-gas assets in Papua New Guinea that local partner Oil Search Ltd. has been trying to buy.

Exxon's all-stock proposal of $2.5 billion is roughly 10% higher than Oil Search's $2.2 billion proposal for the company , which was made in May. Oil Search has until Thursday to meet or beat Exxon's bid.

The corporate tussle over InterOil pits two business partners against one another. Exxon and Oil Search, which is based in Port Moresby, the capital of Papua New Guinea, jointly own the country's only natural-gas export plant. InterOil controls different gas reserves and has proposed a second liquefied-natural-gas facility there, which would compete for customers with the $19 billion Exxon-Oil Search PNG LNG plant.

Oil Search, with financial backing from French oil company Total SA, set its sights on InterOil's gas assets so it could find ways to generate savings. But analysts say that even if Oil Search loses InterOil to Exxon, the company will benefit: If Exxon buys InterOil it would likely invest in expanding the existing LNG infrastructure it co-owned with Oil Search, so that natural gas produced in Papua New Guinea could funnel through one cost-effective project rather than a competing plant.

If Exxon succeeds in buying InterOil, it will be the first company the Irving, Texas-based oil giant has purchased in several years.

Exxon's last large acquisition was the $31 billion takeover of XTO Energy Inc. in 2009, which gave the big oil company massive new oil-and-gas reserves in U.S. shale fields. In 2013, Exxon paid $2.6 billion for Celtic Exploration Ltd., based in Calgary, bulking up the company's shale holdings in Canada.

For the past few years, Exxon has largely shunned corporate deals in favor of land acquisitions. Much of the oil-and-gas acreage that Exxon has purchased is in the Permian Basin of west Texas, which is considered one of the most prolific American basins with some of the lowest costs to produce in the U.S.

Papua New Guinea is a relatively new energy frontier. The small Pacific nation only recently joined the ranks of global energy exporters, in competition for a cluster of large untapped gas deposits that could be developed to feed Asia's demand for cleaner fuels.

If Oil Search walks away from its bid for InterOil this week, it is entitled to a $60 million breakup fee, 20% of which would go to French oil major Total SA, which partially backed Oil Search's offer.

Write to Lynn Cook at lynn.cook@wsj.com , Robb M. Stewart at robb.stewart@wsj.com and David Winning at david.winning@wsj.com

Credit: By Lynn Cook, Robb M. Stewart and David Winning

Subject: LNG; Acquisitions & mergers; Tender offers; Natural gas

Location: United States--US Australia Papua New Guinea

People: Winning, David

Company / organization: Name: Celtic Exploration Ltd; NAICS: 211111; Name: Total SA; NAICS: 447190, 324110, 211111; Name: XTO Energy Inc; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jul 18, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1804878135

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1804878135?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

Business News: Exxon's $2.5 Billion Bid For InterOil Tops Rival's

Author: Cook, Lynn; Stewart, Robb M; Winning, David

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]19 July 2016: B.2.

ProQuest document link

Abstract:

Exxon Mobil Corp. has made a higher bid for InterOil Corp., a U.S.-listed company with natural-gas assets in Papua New Guinea that local partner Oil Search Ltd. has been trying to buy.

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Exxon Mobil Corp. has made a higher bid for InterOil Corp., a U.S.-listed company with natural-gas assets in Papua New Guinea that local partner Oil Search Ltd. has been trying to buy.

Exxon's all-stock proposal of $2.5 billion is roughly 10% higher than Oil Search's $2.2 billion proposal for the company, which was made in May. Oil Search has until Thursday to meet or beat Exxon's bid.

The corporate tussle over InterOil pits two business partners against one another. Exxon and Oil Search, which is based in Port Moresby, the capital of Papua New Guinea, jointly own the country's only natural-gas export plant. InterOil controls different gas reserves and has proposed a second liquefied-natural-gas facility there, which would compete for customers with the $19 billion Exxon-Oil Search PNG LNG plant.

Oil Search, with financial backing from French oil company Total SA, set its sights on InterOil's gas assets so it could find ways to generate savings.

But analysts say that even if Oil Search loses InterOil to Exxon, the company will benefit: If Exxon buys InterOil it would likely invest in expanding the existing LNG infrastructure it co-owned with Oil Search, so that natural gas produced in Papua New Guinea could funnel through one cost-effective project rather than a competing plant.

If Exxon succeeds in buying InterOil, it will be the first company the Irving, Texas-based oil giant has purchased in several years.

Exxon's last large acquisition was the $31 billion takeover of XTO Energy Inc. in 2009, which gave the big oil company massive new oil-and-gas reserves in U.S. shale fields. In 2013, Exxon paid $2.6 billion for Celtic Exploration Ltd., based in Calgary, bulking up the company's shale holdings in Canada.

If Oil Search walks away from its bid for InterOil this week, it is entitled to a $60 million breakup fee, 20% of which would go to French oil major Total SA, which partially backed Oil Search's offer.

Credit: By Lynn Cook, Robb M. Stewart and David Winning

Subject: Natural gas; Tender offers

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: InterOil Corp; NAICS: 324110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.2

Publication year: 2016

Publication date: Jul 19, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1805202537

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Wins Bidding War for InterOil After Oil Search Pulls Out; The $2.5 billion deal is expected to close in September

Author: Cook, Lynn; Winning, David

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 July 2016: n/a.

ProQuest document link

Abstract:

In addition to Exxon's all-stock offer, the company intends to make a cash payment to InterOil shareholders if its Elk-Antelope discoveries contain more than 6.2 trillion cubic feet of natural gas.

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Corrections & Amplifications:

Oil Search Ltd. holds a 29% stake in the PNG LNG plant in Papua New Guinea. An earlier version of this article incorrectly said the company has a 39% stake. (July 22, 2016)

Exxon Mobil Corp. won a bidding war to buy U.S.-listed InterOil Corp. for an estimated $2.5 billion after Oil Search Ltd. dropped out of the process Thursday.

The boards of Exxon and InterOil unanimously approved terms of the $45-a-share agreement that has the potential for an additional cash payment , the companies announced. The deal is expected to close in September, subject to shareholder and regulatory review.

In May, Oil Search offered $2.2 billion for InterOil, which holds six licenses to develop energy projects in Papua New Guinea that cover four million acres. InterOil has announced plans to build a massive liquefied natural gas export terminal in Papua New Guinea, using the large Elk-Antelope field as an anchor for the project.

Exxon Mobil developed the first gas-exporting plant in the country. The PNG LNG plant is a nearly $20 billion megaproject on the island north of Australia that first began shipping gas cargoes two years ago. InterOil's proposed LNG project in Papua New Guinea was seen as posing stiff competition for Exxon's existing customers.

However, there may be a wrinkle in the InterOil deal: Exxon's partner in the PNG LNG project is Oil Search, which holds a 29% stake.

Analysts had expected Oil Search to abandon its pursuit of InterOil rather than enter a bidding war with Exxon, which has a much stronger balance sheet. Experts have also said that Oil Search should benefit regardless of the outcome--either through a stand-alone deal for InterOil or as a partner of Exxon.

Oil Search is based in Port Moresby, the capital of Papua New Guinea, and is traded on the Australian Stock Exchange.

It is highly likely that Exxon will build additional gas-liquefaction trains at its existing plant in Papua New Guinea and tap InterOil's gas fields to feed that project rather than building a separate LNG export facility.

On Thursday, Peter Botten, managing director of Oil Search, said the company wouldn't make a higher offer, but pointed to Exxon's bid as reason to believe there is much to be gained through cooperating or combining on future gas projects.

Oil Search previously estimated that buying InterOil could generate up to $3 billion in capital savings, plus $100 million a year in cost savings.

Rex Tillerson, chairman and chief executive of Exxon, called the deal a value creator for shareholders and the people of Papua New Guinea.

"InterOil's resources will enhance Exxon Mobil's already successful business in Papua New Guinea and bolster the company's strong position in liquefied natural gas," he said.

Many big energy companies, including Exxon and Royal Dutch Shell PLC, have raced to capitalize on rising Asian demand for cleaner-burning fuels. Liquefied natural gas, which can be shipped around the world on tankers in the same fashion as crude oil, is burned to generate electricity. Demand for natural gas is rising is many new markets, too, including the Middle East and Latin America.

In addition to Exxon's all-stock offer, the company intends to make a cash payment to InterOil shareholders if its Elk-Antelope discoveries contain more than 6.2 trillion cubic feet of natural gas. Another exploration well is set to be drilled later this year.

The value of the additional component is $7.07 a share for each trillion cubic feet of gas up to 10 trillion cubic feet, payable when Elk-Antelope's reserve numbers are formally certified.

Write to Lynn Cook at lynn.cook@wsj.com and David Winning at david.winning@wsj.com

Credit: By Lynn Cook and David Winning

Subject: LNG; Natural gas; Stockholders

Location: United States--US Papua New Guinea

People: Tillerson, Rex W

Company / organization: Name: ASX Ltd; NAICS: 523210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jul 21, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1805653157

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

U.S. Stocks Slip on Lower Oil Prices; Energy shares drag on the S&P 500, while Chevron, Exxon are among the biggest decliners on the Dow

Author: Kuriloff, Aaron; Sindreu, Jon

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 July 2016: n/a.

ProQuest document link

Abstract:

"The Japanese economy needs stimulus and it will come in the form of monetary policy now and fiscal policy later in the year," said Salman Ahmed, chief investment strategist at Lombard Odier Investment Managers, who called the BOJ's meeting this week "quite critical" for markets.

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Full text:  

Energy shares led U.S. stocks lower Monday as oil prices fell, pulling major indexes away from record highs.

The declines marked a pullback for the S&P 500 after the slowest trading week of 2016 left the index at a fresh record Friday. U.S. stock-trading volumes were below average again Monday. Some investors said they expected more action this week, with a busy calender of earnings reports and monetary policy meetings of the U.S. Federal Reserve and Bank of Japan.

Energy stocks fell 2% in the S&P 500 as U.S. oil prices lost 2.4% to $43.13 a barrel. Chevron fell $2.59, or 2.5%, to $103.07, while Exxon Mobil declined 1.81, or 1.9%, to 92.20. The stocks were among the biggest decliners in the Dow Jones Industrial Average.

Crude-oil prices have suffered from a summer glut and fading demand. Oil demand for the third quarter of 2016 is growing at less than one-third the rate it did in the same period of last year, according to Barclays, with slower economic growth a major factor. Active rigs in the U.S. are increasing, while gasoline stockpiles are rising in the middle of summer driving season.

The impact of energy-price fluctuation on corporate earnings remains a concern to investors, said Eric Wiegand, senior portfolio manager at U.S. Bank's Private Client Reserve. The energy sector was projected to be the largest contributor to earnings declines in the S&P 500, according to FactSet as of June 30.

Between possible central-bank action and companies including Apple, Caterpillar and Boeing scheduled to report earnings this week, new highs for stocks have "got to be about growth, not just economic growth, but also earnings growth," Mr. Wiegand said.

"That's why getting this deluge of earnings this week will hopefully build some investors' confidence that growth is on the horizon," he said.

The Dow Jones Industrial Average fell 77.79 points, or 0.4%, to 18493.06. The S&P 500 declined 6.55 points, or 0.3%, to 2168.48, while the Nasdaq Composite Index slipped 2.53 points, or less than 0.1%, to 5097.63.

While recent upbeat U.S. economic data has boosted major indexes, some analysts said investors still haven't fully embraced risk, and have only begun to move away from the relative safety of utility and staples companies to stocks that do better in periods of growth, such as financial or technology shares.

Improving economic data has increased expectations that U.S. policy makers could raise interest rates this year. The yield on the benchmark 10-year Treasury note rose to 1.571% Monday, compared with 1.568% Friday. Yields rise as prices fall.

By contrast, pressure is building up on BOJ Governor Haruhiko Kuroda to deliver a new round of monetary stimulus on Friday.

"The Japanese economy needs stimulus and it will come in the form of monetary policy now and fiscal policy later in the year," said Salman Ahmed, chief investment strategist at Lombard Odier Investment Managers, who called the BOJ's meeting this week "quite critical" for markets.

The Nikkei Stock Average and the Shanghai Composite Index were little changed Monday. The Stoxx Europe 600 gained 0.2%.

Write to Aaron Kuriloff at aaron.kuriloff@wsj.com and Jon Sindreu at jon.sindreu@wsj.com

Credit: By Aaron Kuriloff and Jon Sindreu

Subject: Prices; Monetary policy; Economic growth; Energy industry

Location: United States--US

Company / organization: Name: Boeing Co; NAICS: 336411, 336413, 336414; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jul 25, 2016

column: U.S. Markets

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1806412932

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1806412932?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon, Saudi Firm Seek to Build Petrochemical Plant on U.S. Gulf Coast; Exxon's joint venture with Saudi Basic Industries would harness cheap U.S. natural gas

Author: Bradley Olson; Ahmed Al Omran; Olson, Bradley; Ahmed Al Omran

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 July 2016: n/a.

ProQuest document link

Abstract:

A Gulf Coast chemical plant on this size and scale could compete internationally with other similar projects around the world, said Neil Chapman, president of ExxonMobil Chemical Co. "That is vitally important as most of the chemical demand growth in the next several decades is anticipated to come from developing economies," he said.

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Exxon Mobil Corp. is considering a major new petrochemical complex on the U.S. Gulf Coast that would be developed as a joint venture with Saudi Basic Industries Corp., one of the biggest chemical companies in the world.

Monday's announcement is another signal that energy companies continue to find potential investment opportunities even as oil and natural gas prices remain depressed.

The project, if developed, would be located in Texas or Louisiana near abundant supplies of cheap natural gas, the companies said. It would also include a stream cracker, which is capable of producing the chemicals used to make plastic products from football helmets to bulletproof vests.

No final investment decision has been made yet. The companies plan to carry out further studies and consult with state and local officials to help identify a potential site. Neither company disclosed how much such a complex would cost.

A Gulf Coast chemical plant on this size and scale could compete internationally with other similar projects around the world, said Neil Chapman, president of ExxonMobil Chemical Co.

"That is vitally important as most of the chemical demand growth in the next several decades is anticipated to come from developing economies," he said.

Major energy and chemical companies have completed or are planning about 250 such projects around the U.S. valued at a collective $160 billon, according to the American Chemistry Council.

Hydraulic fracturing of wells around the U.S. has unleashed new natural gas reserves, making the country an ideal location for petrochemical operations that use gas as a feedstock to make plastics. U.S. oil and gas drilling has revitalized the American chemical industry in recent years.

Royal Dutch Shell PLC last month said it would move forward with a multibillion petrochemical complex near Pittsburgh, close to the Marcellus and Utica shale gas fields. That plant is projected to cost $6 billion.

Sabic is the state-run chemical company is Saudi Arabia. Exxon and Sabic have worked together for 35 years in other chemical joint ventures in the Middle East.

"We are focused on geographic diversification to supply new markets," said Yousef Abdullah Al-Benyan, SABIC vice chairman and chief executive officer.

Saudi Arabia is seeking to diversify its economy away from oil and plans to hold an initial public offering for a portion of its state-run oil-production company, Saudi Arabian Oil Co., also known as Aramco. Over the last decade, that company has made significant investments in refining as well as chemical operations around the world.

Write to Bradley Olson at Bradley.Olson@wsj.com and Ahmed Al Omran at Ahmed.AlOmran@wsj.com

Read More

* Saudi Arabia Could List Production Assets in Aramco IPO

* Shell to Go Ahead With Petrochemical Plant in Pennsylvania

* First U.S. Gas Shipment En Route to Europe

Credit: By Bradley Olson and Ahmed Al Omran

Subject: Energy industry; Natural gas prices; Natural gas reserves; Acquisitions & mergers

Location: Louisiana Texas Saudi Arabia

Company / organization: Name: Saudi Arabian Oil Co; NAICS: 211111; Name: ExxonMobil Chemical Co; NAICS: 325212, 325220; Name: Saudi Basic Industries Corp; NAICS: 551112; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: American Chemistry Council; NAICS: 813910

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jul 25, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1806502684

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Stocks Slip as Oil Declines --- Energy shares drag on S&P 500; Chevron, Exxon are among Dow's biggest losers

Author: Kuriloff, Aaron; Sindreu, Jon

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]26 July 2016: C.4.

ProQuest document link

Abstract:

"The Japanese economy needs stimulus, and it will come in the form of monetary policy now and fiscal policy later in the year," said Salman Ahmed, chief investment strategist at Lombard Odier Investment Managers, who called the BOJ's meeting on Friday "quite critical" for markets.

Links: 360 Link to Full Text

Full text:  

Energy shares led U.S. stocks lower as oil prices fell, pulling major indexes away from records.

The declines marked a pullback for the S&P 500 after the slowest trading week of 2016 left the index at a fresh record Friday. U.S. stock-trading volumes were below average again Monday. Some investors said they expected more action this week, with a busy calender of earnings reports and monetary-policy meetings of the U.S. Federal Reserve and Bank of Japan.

Energy stocks fell 2% in the S&P 500 as U.S. oil prices lost 2.4% to $43.13 a barrel. Chevron fell $2.59, or 2.5%, to $103.07, while Exxon Mobil declined 1.81, or 1.9%, to 92.20. The two stocks were among the biggest decliners in the Dow Jones Industrial Average.

Crude-oil prices have suffered from a summer glut and fading demand. Oil demand for the third quarter of 2016 is growing at less than one-third the rate it did in the same period of last year, according to Barclays, with slower economic growth a major factor. Active rigs in the U.S. are increasing, while gasoline stockpiles are rising in the middle of summer-driving season.

The impact of energy-price fluctuation on corporate earnings remains a concern to investors, said Eric Wiegand, senior portfolio manager at U.S. Bank's Private Client Reserve. The energy sector was projected to be the largest contributor to earnings declines in the S&P 500, according to FactSet as of June 30.

Between possible central-bank action and companies including Apple, Caterpillar and Boeing scheduled to report earnings this week, new highs for stocks have "got to be about growth, not just economic growth, but also earnings growth," Mr. Wiegand said. "That's why getting this deluge of earnings this week will hopefully build some investors' confidence that growth is on the horizon."

The Dow Jones Industrial Average fell 77.79 points, or 0.4%, to 18493.06. The S&P 500 declined 6.55 points, or 0.3%, to 2168.48, while the Nasdaq Composite Index slipped 2.53 points, or less than 0.1%, to 5097.63.

While recent upbeat U.S. economic data has boosted major indexes, some analysts said investors still haven't fully embraced risk and have only begun to move away from the relative safety of utility and staples companies to stocks that do better in periods of growth, such as financial or technology shares.

Improving economic data have increased expectations that U.S. policy makers could raise interest rates this year. The yield on the benchmark 10-year Treasury note rose to 1.571% Monday, compared with 1.568% Friday. Yields rise as prices fall.

By contrast, pressure is building up on Bank of Japan Gov. Haruhiko Kuroda to deliver a new round of monetary stimuluson Friday.

"The Japanese economy needs stimulus, and it will come in the form of monetary policy now and fiscal policy later in the year," said Salman Ahmed, chief investment strategist at Lombard Odier Investment Managers, who called the BOJ's meeting on Friday "quite critical" for markets.

The Stoxx Europe 600 gained 0.2%. Early Tuesday, Japan's Nikkei was down 1.4%, while the Shanghai Composite was up 0.3%.

Credit: By Aaron Kuriloff and Jon Sindreu

Subject: Dow Jones averages; Stock prices; Daily markets (wsj)

Location: United States--US

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: C.4

Publication year: 2016

Publication date: Jul 26, 2016

column: Monday's Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1806616559

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1806616559?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Yield Plays: Exxon, Chevron Put to the Test; Shares have jumped but look susceptible as oil's slide resumes.

Author: Russolillo, Steven

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 July 2016: n/a.

ProQuest document link

Abstract:

Even though their business models offer diversity, refining margins --which helped shield both companies from declining profits from pumping oil--have also softened of late.

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Don't look now, but oil prices are heading lower. Again.

A glut of gasoline around the globe and continued overproduction of crude are once again weighing on prices, which are hovering near three-month lows . That poses fresh problems for integrated energy giants Exxon Mobil Corp. and Chevron Corp., both of which are set to report second-quarter earnings Friday.

When oil nearly doubled off its mid-$20s low in February, it was easy to think the worst was over. And while that may indeed prove to have been the bottom, lower prices will continue to hamper the energy giants, a reality that Exxon and Chevron know all too well. Even though their business models offer diversity, refining margins --which helped shield both companies from declining profits from pumping oil--have also softened of late.

Both companies had historically poor showings at the start of the year. Exxon's first-quarter profit was its lowest this century. Chevron is coming off back-to-back quarterly losses for the first time in at least two decades. In response, both had their credit-ratings cut and have halted once-meaty stock buybacks.

And yet, both of their share prices are up more than 8% over the past 12 months, more than double the rise in the S&P 500. That disconnect appears to be driven more by investors' voracious search for income and less by fundamentals.

Exxon, for instance, sports a 3.3% dividend yield, more than double the risk-free 10-year Treasury yield. Proudly one of the S&P 500 dividend aristocrats --companies that have boosted their dividends annually for the past 25 years--Exxon is a prime reach-for-yield candidate. Chevron is even more attractive on that basis, offering a juicer 4.2% dividend yield.

That income isn't coming cheap. Based on enterprise value to forward earnings before interest, taxes, depreciation and amortization, both Exxon and Chevron command multiples that in recent months reached their highest levels in more than a decade.

A bet on big oil today is just as much a bet on a recovery as it is on income and safety. It is a big price to pay, particularly if commodity markets don't cooperate. In the short term at least, it doesn't appear worth the risk.

tape@wsj.com

Credit: By Steven Russolillo

Subject: Financial performance; Prices; Losses

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jul 28, 2016

column: Ahead of the Tape

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1807409647

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Mobil Profit Falls to a New Low; Oil giant reports its seventh straight quarter of year-over-year profit declines, with the bottom line falling to a new low since its 1999 megamerger

Author: Steele, Anne

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 July 2016: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. said its quarterly profit dropped 60%, again plumbing a new low since the 1999 merger of Exxon and Mobil, as the oil giant remains racked by low energy prices.

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Exxon Mobil Corp. said its quarterly profit dropped 60%, again plumbing a new low since the 1999 merger of Exxon and Mobil, as the oil giant remains racked by low energy prices.

Shares slipped 2.4% to $88.06 as results came in sharply below expectations. The company has now posted seven straight quarters of year-over-year profit declines and eight straight quarters of falling revenue, according to FactSet data.

Chief Executive Rex Tillerson said the results "reflect a volatile industry environment" and that the company "remains focused on business fundamentals, cost discipline and advancing selective new investments."

For the June quarter, Exxon, the largest U.S. oil company, reported a profit of $1.7 billion, or 41 cents a share, down from $4.19 billion, or $1 a share, a year earlier. Analysts polled by Thomson Reuters were looking for 64 cents a share.

Revenue dropped 22% to $57.69 billion, below analysts' forecast for $60.64 billion.

In the previous quarter, Exxon's profit had plunged to the lowest level since 1999, a year when it nearly doubled in size by acquiring rival Mobil in an $80 billion deal. Investors shrugged off the decline, reflecting optimism stemming from a recent rally in crude prices. Friday's results represent a new low since the merger.

Exxon also was hurt by declining profit in the downstream division, which had previously been a boon amid lower prices for oil and gas. In the latest quarter, refining and marketing, or downstream, earnings were $825 million down 45% from the year-earlier period. Exxon said weaker margins decreased earnings by $850 million while volume and mix effects increased earnings by $130 million.

Vast new supplies of gasoline around the world, combined with the overproduction of oil, has sent crude prices sliding. Refineries have been on a buying spree since crude-oil prices began their descent two years ago, giving them cheap feedstock to make gasoline, diesel and other fuels. But while demand for gasoline has been strong, particularly in the U.S., consumption hasn't been enough to mop up all the fuel spilling out of refineries.

Profit in the exploration and production, or upstream, business plunged by 85% to $294 million. In the U.S., the upstream division widened its loss to $514 million from $47 million a year earlier.

During the quarter, Exxon slashed its capital and explorations spending 38% from a year ago $5.16 billion.

Oil companies around the world have been battered by a price crash that has left crude and natural gas stubbornly low. Producing countries such as Saudi Arabia and major international oil companies like Chevron Corp. have all continued to pump more fuel in the face of the crisis--a standoff that shows no signs of abating.

On Friday, Chevron, the No. 2 energy company in the U.S. by revenue, swung to a loss in the latest quarter--its third straight period in the red--as depressed prices continued to drag results, though the company's revenue decline was less than anticipated.

Write to Anne Steele at Anne.Steele@wsj.com

Credit: By Anne Steele

Subject: Corporate profits; Prices; Petroleum refineries; Financial performance

Location: United States--US

People: Tillerson, Rex W

Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jul 29, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1807570749

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Low Crude Prices Hammer Big Oil Companies; Exxon, Chevron results highlight challenge of operating as crude prices near lows

Author: Olson, Bradley; Williams, Selina

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 July 2016: n/a.

ProQuest document link

Abstract:

"The second-quarter results reflected lower oil prices and our ongoing adjustment to a lower oil price world," said Chevron Chairman and Chief Executive John Watson. Debt has soared at all five companies as they continue to burn though cash at an extraordinary rate. Since last year, they have failed to generate enough cash to pay dividends and invest in new production.

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The world's biggest oil companies posted losses or steep declines in profit for the second quarter, and now face a daunting remainder of the year as crude prices retreat to about $41 a barrel.

Exxon Mobil Corp. on Friday reported its quarterly profit fell 60% to the lowest level since 1999, while Chevron Corp. disclosed its biggest quarterly loss since 2001 . The results capped a bad week for big Western oil companies: BP PLC and Royal Dutch Shell PLC earlier posted earnings that disappointed investors.

"The second-quarter results reflected lower oil prices and our ongoing adjustment to a lower oil price world," said Chevron Chairman and Chief Executive John Watson.

Oil is flirting with bear-market territory once again , as U.S. prices have fallen nearly 20% since hitting a 52-week high of $51.23 on June 8. U.S. oil ended up 1.1% on Friday at $41.60 a barrel.

The average oil price for the second quarter was down from a year earlier, though the slide in producers' performance was even worse. One of the main reasons is that margins have fallen precipitously in the refining business, which had been propping up the companies' bottom lines as most lost money producing oil and gas.

Fears of oversupply have gripped the market as a glut of gasoline has pushed crude prices lower just as the summer driving season ends. That threatens to upend oil executives' expectations that the market--and profits--would begin to stabilize over the second half of the year.

Exxon, Shell, Chevron, BP and French oil major Total SA in all have cut spending by about $50 billion since 2013 and slashed tens of thousands of jobs; but the cutting hasn't been nearly enough to protect profits after oil prices began plunging.

In the latest quarter, Exxon's profit fell to $1.7 billion and Chevron reported a loss of $1.5 billion. Shell's profit fell 93% from a year earlier to $239 million, and BP reported a $2.25 billion loss , its third straight.

Debt has soared at all five companies as they continue to burn though cash at an extraordinary rate. Since last year, they have failed to generate enough cash to pay dividends and invest in new production. That shortfall is on a pace to exceed $90 billion by the end of the year.

The results--and the roller-coaster market for crude--have confronted executives, investors and analysts with the sobering reality that a recovery will be tenuous and arduously slow.

"The road ahead is going to be a tough one for the majors," said Gianna Bern, an associate professor of finance at the University of Notre Dame who has advised big oil companies. "The mantra has been to cut spending, reduce head count and wait for higher prices, but it doesn't look like those are coming any time soon."

Shares of big oil companies slumped this week as the extent of their losses became public. Energy executives have sought to reassure shareholders that energy prices will rebound. Similar predictions last year were dashed when prices dipped again after a modest rebound.

Exxon fell 4.9% this week to close at $88.87 on Friday. Chevron dropped 2.3% to $102.47. BP's American depositary receipts fell 3% to $34.40 and Shell's fell 4.1% to $51.81.

Shell CEO Ben van Beurden said he believed the market would come back into balance in the second half of the year.

Billionaire U.S. drilling pioneer Harold Hamm and executives at EOG Resources Inc., the big shale producer, both predicted that prices would rebound in the second half of 2015.

Instead, they fell to a 13-year low in January at $27 a barrel.

Many oil and gas companies have promised to "live within cash flow" by next year, assuring investors that they will be able to generate enough money to pay for new projects and dividends without additional borrowing.

Total said it would need oil prices at $60 a barrel to reach that mark, while BP Chief Executive Bob Dudley said the company could deliver in 2017 if oil prices are between $50 and $55 a barrel.

So far this year, oil has sold for an average of about $40 a barrel.

"We're not counting on a recovery in oil prices," Mr. Dudley said in an interview. "Oil companies made money at $20 a barrel in the past, so if we're going to stay lower, the whole industry would rebase itself."

That goal may be more elusive than investors realize. In 2013, when global oil prices averaged about $109 a barrel, the five companies all failed to generate enough cash to meet spending commitments and dividend payments.

The shortfall was $41 billion, according to a Wall Street Journal analysis.

For much of the past month, Brent crude prices have been trading well below $50 as a gasoline glut undermined the recovery seen in the second quarter.

Prompted by last year's strong profit margins in refining, most companies took advantage by ramping up output, which has heightened oversupply fears. Earlier this week, BP said its profit margins at its refineries fell to their lowest levels since 2010.

Total blamed its lower earnings on deteriorating revenue from its refineries and petrochemical plants. Exxon and Chevron saw such profits fall by almost half.

The decline in refining margins is largely due to oversupply, said Jeff Woodbury, Exxon's vice president of investor relations, in a call with investors Friday.

"Demand is growing, but the issue that we're all faced with right now are very large inventories of products," he said. "Either the demand has got to grow or the supply's got to shrink."

Some energy experts played down the carnage, saying big oil firms remain strong bets to bounce back over the long run.

"The difficult times are all a function of the low price, and while they still remain low, they will come back eventually," said Ed Hirs, a lecturer on energy economics at the University of Houston who runs a small oil and gas production firm. "This is probably the last quarter that we'll see the big oil companies trying to clean up their balance sheets."

Anne Steele contributed to this article.

Write to Bradley Olson at Bradley.Olson@wsj.com and Selina Williams at selina.williams@wsj.com

Read More

* Heard on the Street: Exxon's Tank Still Fuller Than Peers

* Exxon Mobil Profit Falls to a New Low (July 29)

* Chevron Swings to a Loss (July 29)

* Oil Rebounds After Touching Bear Territory (July 29)

* Shell Profit Hit Hard by Low Oil Prices (July 28)

* BP Suffers Third Straight Quarterly Loss (July 26)

Credit: By Bradley Olson and Selina Williams

Subject: Profits; Investments; Crude oil prices; Natural gas utilities

Location: United States--US

People: Tillerson, Rex W

Company / organization: Name: Total SA; NAICS: 447190, 324110, 211111; Name: University of Notre Dame; NAICS: 611310

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jul 29, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1807608023

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon's Tank Still Fuller Than Peers; Chemical division helps oil major despite painful cost cutting, weak crude prices

Author: Jakab, Spencer

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 July 2016: n/a.

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Abstract:

Part of the appeal of an integrated energy company to investors is that the upstream and downstream parts of the business aren't in sync, but it is a myth that they are strictly countercyclical.

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You know these are tough times for energy companies when their chemical divisions are the big stars on earnings day.

With its other businesses struggling, Exxon Mobil's unit delivered more than half of the company's profits in the first six months of 2016. Two years earlier, during better times, chemicals accounted for less than a 10th of profits.

Despite a rebound in hydrocarbon prices from earlier in the year, quarterly profits at Exxon Mobil fell well below expectations to the lowest so far this century. Even with a continued boost from chemical margins, the company's numbers just don't add up.

Despite painful cuts, Exxon still invested $5.2 billion during the quarter and paid out $3.1 billion in dividends, a commitment it reaffirmed during the conference call. That is compared with earnings of just $1.7 billion .

Part of the problem is there is now a glut in motor fuels, which had been a prop to earnings, and that has pushed refining margins to multiyear lows. Meanwhile crude prices are now around a three-month low.

Part of the appeal of an integrated energy company to investors is that the upstream and downstream parts of the business aren't in sync, but it is a myth that they are strictly countercyclical. Another attraction, that companies will dig deep to pay steady dividends, is mostly true. But investors are clearly spooked by the necessary sacrifices.

Shell famously hasn't cut its payout in 70 years, but a yield of over 7% in a world of Lilliputian interest rates suggests that investors believe something has got to give. Chevron's yield of 4.2% also suggests doubts.

Even if these companies don't cut their payouts, they may only do so by slashing spending to the point that they stunt growth. Even Exxon, the best-suited among the supermajors to maintain payouts, failed to replace reserves in 2015 for the first time in 22 years.

Today's investment drought will hasten tomorrow's oil-price rebound. If Exxon can make less painful cuts than its peers then it will come out of this energy bust even more dominant, as it did after the last one and the one before that. Its shares are the best performer among large integrated companies in the two years since oil prices peaked and it recently used them as currency to buy an Asian liquefied natural gas producer. There is growing speculation it may snap up distressed North American assets too.

The question for Exxon and the rest of the industry is how long the drought will last.

Write to Spencer Jakab at spencer.jakab@wsj.com

Credit: By Spencer Jakab

Subject: Corporate profits; Prices; Investments; Energy industry

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Jul 29, 2016

column: Heard on the Street

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1807625284

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Shunning Big Oil for Tech; The tumble in oil prices in the past two years has taken its toll on Exxon Mobil

Author: Grocer, Stephen

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Aug 2016: n/a.

ProQuest document link

Abstract:

If Exxon were to fall out of the top five, it would highlight the rise of technology companies among the biggest in the U.S. Investors increasingly believe a few tech giants are building virtually unassailable franchises that are best positioned to benefit from the growth in the sector in coming years.

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The tumble in oil prices in the past two years has taken its toll on Exxon Mobil Corp.

The oil giant's earnings, which it reported Friday, haven't been so low since the merger with Mobil Corp. in 1999. Now oil's slide has Exxon on the cusp of falling out of the top five largest U.S.-listed companies by market capitalization.

After reporting earnings last week, the market value of Amazon.com Inc., Facebook Inc. and Exxon are now clustered within roughly $14 billion of each other. Amazon and Facebook now sit at $358 billion and $355 billion, while Exxon's market cap slipped to $369 billion, according to Thomson Reuters. Meanwhile, Berkshire Hathaway is valued at a little more than $355 billion.

If Exxon ends the year out of the top five largest U.S.-listed companies, it would mark the first time that has happened since at least 1980, said Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. Over that period, it finished the year as the largest company nine times, tied for second behind General Electric with 10.

If Exxon were to fall out of the top five, it would highlight the rise of technology companies among the biggest in the U.S. Investors increasingly believe a few tech giants are building virtually unassailable franchises that are best positioned to benefit from the growth in the sector in coming years.

Exxon was valued at around $445 billion in mid-2014, beforeo the slide in oil, according to Thomson Reuters. Facebook and Amazon had market values of $165 billion and $150 billion, respectively. Since then, Amazon's and Facebook's shares have gained 134% and 92%, respectively, while Exxon's shares lost 14%.

Stephen Grocer

Credit: By Stephen Grocer

Subject: Grocery stores

Location: United States--US

Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140; Name: Amazon.com Inc; NAICS: 454111; Name: Berkshire Hathaway Inc; NAICS: 442210, 445292, 511110, 511130, 524126, 335210; Name: Facebook Inc; NAICS: 519130, 518210; Name: General Electric Co; NAICS: 334512, 334519, 332510, 334290; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Aug 1, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1807852712

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Official Says a Ban on Fossil Fuel is Unrealistic; Commercial adviser for oil company speaking at conference, says comments are his personal opinion

Author: Molinski, Dan

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Aug 2016: n/a.

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Abstract:

Growing concerns over carbon emissions' impact on climate change have made fossil fuels--mainly oil, natural gas and coal--more unpopular than ever.

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SAN ANTONIO--An Exxon Mobil Corp. official on Tuesday dismissed the growing calls by some nations to sharply curtail the use of fossil fuels, or even ban them altogether, as unfeasible.

"They can sit around in the dark and talk about how it worked out," Ken Golden, commercial adviser for Exxon, said from the podium at an oil conference in San Antonio. He prefaced his comment by saying it was his personal view, and that it wasn't Exxon's official response.

Mr. Golden was giving a speech at the Unconventional Resources Technology Conference that looked at Exxon's energy outlook to 2040, detailing long-term energy trends.

The Exxon official said the company is concerned about the risks climate change poses, and that it encourages the use of renewable and other alternative fuels. But he said, for example, that even while the use of wind and solar power will rise faster than any other energy source through 2040, those two will still amount to less than 3% of total energy use.

"There are billions of people who need to read, need to learn, need to improve their standard of living," he said. "You simply cannot do this without fossil fuels."

The fossil fuels of oil, coal and natural gas are expected to provide about 80% of global energy through 2040, Exxon said.

Growing concerns over carbon emissions' impact on climate change have made fossil fuels--mainly oil, natural gas and coal--more unpopular than ever.

Some climate activists have been pushing for an eventual total ban on the use of fossil fuels, saying they should simply remain in the ground. Such ideas have gained traction in some Pacific Island nations that face coastal erosion and sea level rise due to climate change. Even oil-producing nations like Norway have discussed banning fossil-fuel-powered cars over the coming years.

Exxon is involved in a monthslong political and legal fight over whether it has long known about the dangers oil poses to climate change and the environment, but purposely misled the public or hid its findings.

Mr. Golden said that while Exxon's 2040 outlook expects coal use to decline sharply, "oil will remain the world's primary energy fuel," and demand for oil and other liquids will grow by 20% from 2014 to 2040, it said.

That rising oil demand will come entirely from developing nations, he said, led by China and India. For example, while there are currently two cars per 100 people in India, this will quintuple to 10 cars per 100 people by 2040, he said. In the U.S., there are 60 cars for every 100 people.

"The risk to climate change is critical but so is raising the living standards for billions of people," Mr. Golden said. "We have to do both."

Write to Dan Molinski at Dan.Molinski@wsj.com

Credit: By Dan Molinski

Subject: Fossil fuels; Climate change; Coal

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Aug 2, 2016

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1808196065

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-22

Database: The Wall Street Journal

The Climate Prosecutors Can't Dodge Congress Forever; The state officials who subpoenaed Exxon face questions from the House--and they have to answer.

Author: Elizabeth Price Foley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Aug 2016: n/a.

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Abstract:

When Congress subpoenas state attorneys general in the rightful exercise of its legislative and investigative power, all assertions of state authority give way because of the Supremacy Clause. To begin restoring Congress's constitutional authority, the House of Representatives should push back against these state attorneys general and vigorously litigate to enforce the Science Committee's subpoenas.

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For a sense of how far the left will go to enforce climate-change orthodoxy, read the recently released "Common Interest Agreement" signed this spring by 17 Democratic state attorneys general. The officials pledged to investigate and take legal action against those committing climate wrongthink. Beginning late last year, the attorneys general of Massachusetts, New York and the U.S. Virgin Islands, all signatories to the agreement, issued broad-ranging subpoenas against Exxon Mobil and conservative think tanks. They sought documents and communications related to research and advocacy on climate change.

Concerned that these investigations were designed to chill First Amendment rights, the House Committee on Science, Space and Technology issued its own subpoenas. In mid-July the committee, led by Rep. Lamar Smith (R., Texas), asked the attorneys general to produce their communications with environmental groups and the Obama administration about their investigations.

They have indignantly refused to comply. New York Attorney General Eric Schneiderman claimed, in a July 13 letter to Mr. Smith, that the committee was "courting constitutional conflict" by failing to show "a due respect for federalism." Massachusetts Attorney General Maura Healey, in a similar letter dated July 26, asserted that the subpoenas are "unconstitutional" because they are "an affront to states' rights."

This view is utterly wrong. Federalism is a critical component of the constitutional architecture. The federal government exercises only limited and enumerated powers, and the states, under the Tenth Amendment, possess all other powers "not delegated to the United States." But when the federal government acts within its delegated powers, it is entitled to supremacy over the states.

The Supreme Court has long recognized Congress's power to investigate any matter within its legislative or oversight competence. With that comes a corresponding power to enforce its inquiries. The justices wrote in Barenblatt v. U.S. (1959) that the scope of Congress's power of inquiry "is as penetrating and far-reaching as the potential power to enact and appropriate under the Constitution."

Similarly, in McGrain v. Daugherty (1927), the court held that "the power of inquiry--with the process to enforce it--is an essential and appropriate auxiliary to the legislative function." That's why lawmakers passed a law to make contempt of a congressional subpoena a crime, punishing anyone who willfully refuses to answer "any question pertinent to the question under inquiry."

The subpoenas to state attorneys general regarding their climate crusade easily fall within Congress's legislative and oversight competence. The House Science Committee has jurisdiction over matters relating to scientific research. Its rules authorize the chairman to issue subpoenas on behalf of the committee.

Further, Congress has ample authority to investigate and sanction violations of First Amendment rights that are committed by state officials. For instance, the Ku Klux Klan Act of 1871 includes a provision--lawyers often call it simply "section 1983," referring to its place in Title 42 of the U.S. Code--authorizing monetary damages against state officials who infringe a constitutional right.

Congress's broad investigatory power clearly extends to state officials. In February, the House Oversight Committee compelled Darnell Earley, the emergency manager of Flint, Mich., to testify on the contamination of that city's drinking water. Mr. Earley initially refused to appear, but he quickly acceded to its subpoena after the committee's chairman, Rep. Jason Chaffetz (R., Utah), threatened to call the U.S. Marshals to "hunt him down."

Under the Supremacy Clause of the Constitution, privileges grounded in state law--such as the attorney-client privilege or work-product privilege--are not binding on the federal government. The letter to Rep. Smith from the Massachusetts attorney general, for example, argued that the committee's subpoena seeks documents that are "either attorney-client privileged" or "protected from disclosure as attorney work product." Congress is obligated to honor neither of those state-law privileges.

When Congress subpoenas the White House or agencies in the executive branch, there is a delicate balancing of competing constitutional interests. This is because the executive often refuses to comply by invoking a presidential privilege grounded in Article II of the Constitution.

But there is no such difficult constitutional balancing required here. When Congress subpoenas state attorneys general in the rightful exercise of its legislative and investigative power, all assertions of state authority give way because of the Supremacy Clause. No state official--whether judicial, legislative or executive--may resist a legitimate federal command.

Throughout the Obama administration, congressional powers have been increasingly usurped by the executive. The White House has unilaterally rewritten statutes, ignored congressional subpoenas and arrogated to itself the power of the purse. These actions have too often received the blessing of congressional Democrats, who have allowed partisanship to override their fidelity to the Constitution and their institutional self-interest.

To begin restoring Congress's constitutional authority, the House of Representatives should push back against these state attorneys general and vigorously litigate to enforce the Science Committee's subpoenas.

Ms. Foley is a constitutional law professor at Florida International University College of Law.

Credit: By Elizabeth Price Foley

Subject: Attorneys general; Constitutional law; Congressional committees; Climate change; Subpoenas

Location: Massachusetts New York

People: Schneiderman, Eric

Company / organization: Name: Congress; NAICS: 921120; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: House of Representatives-Science & Technology, Committee on; NAICS: 921120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Aug 21, 2016

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1812800591

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Big Oil Companies Binge on Debt; Exxon, Shell, BP and Chevron have combined debt of $184 billion amid two-year slump

Author: Williams, Selina; Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Aug 2016: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp., Royal Dutch Shell PLC, BP PLC and Chevron Corp. hold a combined net debt of $184 billion--more than double their debt levels in 2014, when oil prices began a steep descent that eventually bottomed out at $27 a barrel earlier this year.

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Corrections & Amplifications:

In the first half of 2016, the companies fell short of that goal by $40 billion, according to a Wall Street Journal analysis of their numbers. An earlier version of this article incorrectly stated that it was the first half of 2015. Aug. 24, 2016

Some of the world's largest energy companies are saddled with their highest debt levels ever as they struggle with low crude prices, raising worries about their ability to pay dividends and find new barrels.

Exxon Mobil Corp., Royal Dutch Shell PLC, BP PLC and Chevron Corp. hold a combined net debt of $184 billion--more than double their debt levels in 2014, when oil prices began a steep descent that eventually bottomed out at $27 a barrel earlier this year. Crude prices have rebounded since, but still hover near $50 a barrel.

The soaring debt levels are a fresh reminder of the toll the two-year price slump has taken on the oil industry. Just a decade ago, these four companies were hauled before Congress to explain "windfall profits" but now can't cover expenses with normal cash flow.

Executives at BP, Shell, Exxon and Chevron have assured investors that they will generate enough cash in 2017 to pay for new investments and dividends, but some shareholders are skeptical. In the first half of 2016, the companies fell short of that goal by $40 billion, according to a Wall Street Journal analysis of their numbers.

"Eventually something will give," said Michael Hulme, manager of the $550 million Carmignac Commodities Fund, which holds stakes in Shell and Exxon. "These companies won't be able to maintain the current dividends at $50 to $60 oil--it's unsustainable."

The debt is piling up despite cuts of billions of dollars on new projects and current operations. Repaying the loans could weigh the companies down for years, crimping their ability to make investments elsewhere and keep pumping ever more oil and gas.

The companies spent more than 100% of their profits on dividends last year. This year, the problem got worse. In the April-to-June period, Exxon paid $3.1 billion in dividends and had just $1.7 billion in net income, according to S&P Global Market Intelligence. Shell paid $1.26 billion in interest in the first half of 2016, compared with $726 million in the same period a year earlier.

"They are just not spending enough to boost production," said Jonathan Waghorn, co-portfolio manager in London at Guinness Atkinson Asset Management Inc. who helps oversee more than $400 million across a range of energy funds, including shares in Exxon, BP, Chevron and Shell.

The oil companies say they have many tools to deploy to help defray debt, including selling assets and offering shareholders more shares instead of a cash dividend, as well as continuing to cut costs. Record-low interest rates are helping ease some of the pain.

They also say the steep levels of debt are temporary as the companies restructure, and the debt will fall when oil prices rise.

"We are in a transitional stage in 2016," said Shell Chief Executive Ben van Beurden during last month's earnings disclosures. The company reported a rise in net debt to over $75 billion at the end of the second quarter, in large part because of its acquisition of BG Group PLC.

BP has said it expects to be able to pay for its operations, make new investments and meet its dividend at an oil price of between $50 and $55 a barrel next year.

But analysts and investors say the oil slump is making it harder than ever for companies to raise money with asset sales to pay off debt. Handing out more shares to shareholders is only storing up the dividend problem for the future when the companies will need to pay up. Even the boost many companies got from bumper profits from their refining divisions--which tend to do well when prices are low--looks to be coming to an end as a glut of gasoline erodes fuel prices, say investors and analysts.

Still, some funds see BP, Shell, Exxon and Chevron as big enough to weather problems for the next year and a half. Wilmington Trust has reduced its exposure to energy companies it deems more risky in favor of other corporate debt. But the firm remains invested in debt issued by BP, Chevron and Shell

"They're so big, they can diversify, they have more levers to push and pull in terms of shoring up their creditworthiness," said Wilmer Stith, senior fixed-income portfolio manager at Wilmington Trust, which has $73 billion in assets under management.

Only another long period of oil below $40 a barrel would pose a challenge that could prompt dividend cuts, said Iain Reid, senior oil analyst at Macquarie Capital. A Goldman Sachs report this week projected oil prices remaining between $45 and $50 a barrel for much of the next year.

"The question is, can they get through this year and next without doing something radical like cutting dividends?" said Iain Reid, senior oil analyst at Macquarie Capital.

The rise in net debt has helped push these companies' ratio of net debt to equity to the highest level in years, which influences the ratings given by credit agencies. S&P has already downgraded Shell, Chevron, Exxon and BP, though they all remain highly rated.

Shell's debt-to-equity ratio is at 28% and Chief Financial Officer Simon Henry said last month it could even reach its targeted maximum of 30%. BP's gearing is over 25%, while Chevron's is 20% and Exxon's is around 18%.

By comparison, in 2012, Shell's gearing was around 10%, and Exxon's was 1.2%. Back in 2005, when oil prices were climbing steadily, Exxon had no debt, and its profits were so high that its executives and those from other big oil companies were called to testify in front of the U.S. Senate about their so-called windfall profits.

Chevron's Chief Financial Officer Patricia Yarrington said in April that the company's higher levels of debt were expected . "We could handle that if it's temporary," she said.

Much of the new debt has been in corporate bonds. Exxon, for instance, issued $12 billion in debt in February. Two months later, the company was downgraded by S&P Global Ratings, losing the triple-A credit rating that it had held since 1930.

Exxon Chief Executive Rex Tillerson has assured investors that Exxon remains committed to paying its dividend .

The company has increased shareholder payments for 34 straight years, although those increases have been modest in the past two years. Mr. Tillerson and others have noted that Exxon has the ability to borrow further. If anything, the company has signaled a willingness to go further into debt for strategic opportunities, such as buying assets, including InterOil Corp., a small company focused on gas exports in Papua New Guinea that Exxon agreed to acquire for an estimated $2.5 billion in July

"We're not going to forgo attractive opportunities," said Jeff Woodbury, Exxon's vice president of investor relations, on an investor call last month.

Heather Gillers in New York contributed to this article.

Write to Selina Williams at selina.williams@wsj.com and Bradley Olson at Bradley.Olson@wsj.com

Credit: By Selina Williams and Bradley Olson

Subject: Investments; Executives; Stockholders; Crude oil prices; Windfall profits; Energy industry

People: van Beurden, Ben

Company / organization: Name: Congress; NAICS: 921120; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Aug 24, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1813586361

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

State AGs Want a Double Standard on Climate; The attorneys general should have to reveal their findings from the Exxon Mobil investigation.

Author: Anonymous

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 Aug 2016: n/a.

ProQuest document link

Abstract:

[...]if a witch hunt by the state attorneys general to find evidence of manipulation or unacceptable interpretation of climate research by Exxon Mobil is protected from congressional scrutiny, what about investigations of individuals and entities that pay for or generate research regarding the minimum wage, gender pay gap, income inequality or tax rates?

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In "The Climate Prosecutors Can't Dodge Congress Forever " (op-ed, Aug. 22) Elizabeth Price Foley focuses on how global-warming activists don't want people to discuss the influence of human activity on climate change. The actions taken by the collaborating state attorneys general illustrate the extremes some activists will take to suppress debate.

The idea that global-warming ideology cannot be questioned brings to mind a quote by Nobel laureate physicist, Richard Feynman: "I would rather have questions that can't be answered than answers that can't be questioned." Hopefully, the congressional investigations into the activities of the state attorneys general will shed light on the absurdity of forcing acceptance of answers that can't be questioned.

F. Duane Ingram

Loves Park, Ill.

It is good news that "climate prosecutors can't dodge Congress forever." Massachusetts Attorney General Maura Healey, who demanded full disclosure from Exxon Mobil and conservative think tanks regarding all communications dealing with climate research, insists that Congress demanding full disclosure regarding her investigation is an unconstitutional "affront to states' rights."

However, if a witch hunt by the state attorneys general to find evidence of manipulation or unacceptable interpretation of climate research by Exxon Mobil is protected from congressional scrutiny, what about investigations of individuals and entities that pay for or generate research regarding the minimum wage, gender pay gap, income inequality or tax rates? State attorneys general could use subpoena power to silence researchers and companies with whom they disagree.

Our constitutional rights will be protected if the attorneys general have to reveal their findings.

Gary Phillips

Greenville, S.C.

Subject: Attorneys general; Research; Climate change; Disclosure; Gender pay gap

People: Feynman, Richard P

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Aug 26, 2016

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1814223329

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 201 7-11-23

Database: The Wall Street Journal

Exxon Mobil Backs Out of Proposed Alaska LNG Project; Decision comes amid low prices for natural gas and follows Wood McKenzie report

Author: Dawson, Chester

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Aug 2016: n/a.

ProQuest document link

Abstract:

Gov. Bill Walker has sought to advance the long-delayed project by taking a direct stake through the state-owned Alaska Gasline Development Corp. But Exxon and its corporate partners balked at the government's efforts to start the next stage of the project--an engineering and design study estimated to cost more than $1 billion--in 2017 without a royalty and tax agreement.

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Exxon Mobil Corp. has decided not to invest in the next stage of a proposed natural gas export terminal in Alaska and said it would work with its partners to sell its interest in the project to the state government.

The company's decision comes amid a global glut of natural gas that has depressed prices and follows the release of a Wood McKenzie report earlier this week concluding the Alaskan project "is one of the least competitive" of proposed liquefied natural gas plants worldwide.

A spokesman for Exxon said Friday that the company will no longer invest in the proposal, which is "transitioning to a state project." Exxon owns about one-third of the project, according to the state.

Last November, the Alaskan government paid $65 million for TransCanada Corp.'s 25% stake in the project , known as Alaska LNG, which is expected to cost between $45 billion and $65 billion. It has yet to be approved for construction and wouldn't start commercial shipments before 2023, according to filings by its corporate backers. The other backers, BP PLC and ConocoPhillips, each hold roughly 20% stakes and have signaled that they, too, could pull out.

Gov. Bill Walker has sought to advance the long-delayed project by taking a direct stake through the state-owned Alaska Gasline Development Corp. But Exxon and its corporate partners balked at the government's efforts to start the next stage of the project--an engineering and design study estimated to cost more than $1 billion--in 2017 without a royalty and tax agreement.

An Exxon executive on Thursday told the Alaskan legislature's joint resources committee that the company would pull out of the project as an investor due in part to a "misalignment" between the government and its partners, BP and ConocoPhillips.

Bill McMahon, a senior commercial adviser on the project, testified that Exxon would no longer participate in the proposed LNG plant but is open to supplying gas from the North Slope if the state proceeds on its own.

Those comments were echoed by executives at BP and ConocoPhillips in their testimony before the committee.

"ConocoPhillips is unlikely at this point to agree to directly participate in the FEED for the project in 2017 due to the significant economic headwinds and other challenges," said Darren Meznarich, the company's project integration manager for Alaska LNG.

Gov. Walker said in a statement on Thursday that he remains committed to "exploring some of the alternate project structures currently being investigated" that could allow the Alaska LNG to proceed with construction.

Alaska LNG would transport natural gas from the North Slope fields, then liquefy the fuel at the facility on Cook Inlet for shipment to markets in Asia. But the proposal would be uneconomic at current LNG prices or even crude oil prices under $70 a barrel, according to energy consultancy Wood Mackenzie's report, which was commissioned by Exxon, BP and the state's AGDC.

"The Alaska LNG project is one of the least competitive on a cost of supply basis compared with other" proposed LNG export terminals, Wood Mackenzie said.

Alaska LNG aims to produce as much as 20 million tons of LNG a year, dwarfing the 1.2 million-ton capacity of Alaska's only operating LNG facility, which was built in 1969 and is operated by ConocoPhillips.

Write to Chester Dawson at chester.dawson@wsj.com

Credit: By Chester Dawson

Subject: LNG; Natural gas; Bills; Crude oil prices

Location: Alaska

Company / organization: Name: ConocoPhillips Co; NAICS: 211111; Name: TransCanada Corp; NAICS: 486210; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Aug 27, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1814246708

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Business News: Exxon Pulls Out of Alaska Project Amid Downturn

Author: Dawson, Chester

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]29 Aug 2016: B.7.

ProQuest document link

Abstract:

Gov. Bill Walker has sought to advance the long-delayed project by taking a direct stake through the state-owned Alaska Gasline Development Corp. But Exxon and its corporate partners balked at the government's efforts to start the next stage of the project -- an engineering and design study estimated to cost more than $1 billion -- in 2017 without a royalty and tax agreement.

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Full text:  

Exxon Mobil Corp. has decided not to invest in the next stage of a proposed natural gas export terminal in Alaska and said it would work with its partners to sell its interest in the project to the state government.

The company's decision comes amid a global glut of natural gas that has depressed prices and follows the release of a Wood McKenzie report last week concluding the Alaskan project "is one of the least competitive" of proposed liquefied natural gas plants world-wide.

A spokesman for Exxon said Friday that the company will no longer invest in the proposal, which is "transitioning to a state project."

Exxon owns about one-third of the project, according to the state.

Last November, the Alaskan government paid $65 million for TransCanada Corp.'s 25% stake in the project, known as Alaska LNG, which is expected to cost between $45 billion and $65 billion.

It has yet to be approved for construction and wouldn't start commercial shipments before 2023, according to filings by its corporate backers. The other backers, BP PLC and ConocoPhillips, each hold roughly 20% stakes and have signaled that they, too, could pull out.

Gov. Bill Walker has sought to advance the long-delayed project by taking a direct stake through the state-owned Alaska Gasline Development Corp. But Exxon and its corporate partners balked at the government's efforts to start the next stage of the project -- an engineering and design study estimated to cost more than $1 billion -- in 2017 without a royalty and tax agreement.

An Exxon executive on Thursday told the Alaskan legislature's joint resources committee that the company would pull out of the project as an investor due in part to a "misalignment" between the government and its partners, BP and ConocoPhillips.

Bill McMahon, a senior commercial adviser on the project, testified that Exxon would no longer participate in the proposed LNG plant but is open to supplying gas from the North Slope if the state proceeds on its own.

Those comments were echoed by executives at BP and ConocoPhillips in their testimony before the committee.

"ConocoPhillips is unlikely at this point to agree to directly participate in the FEED for the project in 2017 due to the significant economic headwinds and other challenges," said Darren Meznarich, the company's project integration manager for Alaska LNG.

Gov. Walker said in a statement on Thursday that he remains committed to "exploring some of the alternate project structures currently being investigated" that could allow the Alaska LNG to proceed with construction.

Alaska LNG would transport natural gas from the North Slope fields, then liquefy the fuel at the facility on Cook Inlet for shipment to markets in Asia. But the proposal would be uneconomic at current LNG prices or even crude oil prices under $70 a barrel, according to energy consultancy Wood Mackenzie's report, which was commissioned by Exxon, BP and the state's AGDC.

"The Alaska LNG project is one of the least competitive on a cost of supply basis compared with other" proposed LNG export terminals, Wood Mackenzie said.

Alaska LNG aims to produce as much as 20 million tons of LNG a year, dwarfing the 1.2 million-ton capacity of Alaska's only operating LNG facility, which was built in 1969 and is operated by ConocoPhillips.

Credit: By Chester Dawson

Subject: LNG; Crude oil prices; Natural gas industry

Location: Alaska

Company / organization: Name: ConocoPhillips Co; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.7

Publication year: 2016

Publication date: Aug 29, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1814536153

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

How the Exxon Case Unraveled; It becomes clear that investigators simply don't know what a climate model is.

Author: Jenkins, Holman W, Jr

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Aug 2016: n/a.

ProQuest document link

Abstract: None available.

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Full text:  

New York Attorney General Eric Schneiderman's investigation of Exxon Mobil for climate sins has collapsed due to its own willful dishonesty. The posse of state AGs he pretended to assemble never really materialized. Now his few allies are melting away: Massachusetts has suspended its investigation. California apparently never opened one.

The U.S. Virgin Islands has withdrawn its sweeping, widely criticized subpoena of research groups and think tanks. In an email exposed by a private lawsuit, one staffer of the Iowa AG's office tells another that Mr. Schneiderman himself was "the wild card."

His initial claim, flounced to the world by outside campaigners under the hashtag "exxonknew," fell apart under scrutiny. This was the idea that, through its own research in the 1970s, Exxon knew one thing about climate science but told the public something else.

In an Aug. 19 interview with the New York Times, Mr. Schneiderman now admits this approach has come a cropper. He reveals that he's no longer focusing on what Exxon knew/said but instead on how it goes about valuing its current oil reserves. In essence, Mr. Schneiderman here is hiding his retreat behind a recent passing fad in the blogosphere for discussing the likelihood that such reserves will become "stranded assets" under some imaginary future climate regime.

His crusade was always paradoxical. The oil industry reliably ranks last in Gallup's annual survey of public credibility. The $16 million that Exxon spent between 1998 and 2005 to support organizations that criticized speculative climate models is a minuscule fraction of the propaganda budgets of the U.S. Energy Department, NASA, NOAA, EPA, not to mention the United Nations' climate panel, etc. etc.

The episode ends happily, though, if Mr. Schneiderman's hoped-for political career now goes into eclipse. But we haven't finished unless we also mention the press's role.

The "Exxon knew" claim, recall, began with investigative reports by InsideClimate News and the Los Angeles Times, both suffering from the characteristic flaw of American journalism--diligently ascertaining and confirming the facts, then shoving them into an off-the-shelf narrative they don't support.

We have since learned that both the L.A. Times (via a collaboration with the Columbia School of Journalism) and InsideClimate News efforts were partly underwritten by a Rockefeller family charity while Rockefeller and other nonprofit groups were simultaneously stoking Mr. Schneiderman's investigation.

When caught with your hand in the cookie jar in this way, there's only one thing to do, and last week the Columbia School of Journalism did it, awarding a prize to InsideClimate News.

For this columnist, however, the deeper mystery was cleared up last year when I appeared on the NPR show "To the Point" to discuss the subject "Did Exxon Cover Up Climate Change?" (Google those phrases) with ICN's "energy and climate" reporter Neela Banerjee.

Ms. Banerjee has been collecting plaudits all year for her work. The work itself involved revisiting Exxon's climate modeling efforts of the 1970s. Yet, at 16:28, see how thoroughly she bollixes up what a climate model is. She apparently believes the uncertainty in such models stems from uncertainty about how much CO2 in the future will be released.

"The uncertainties that people talk about . . . are predicated on the policy choices we make," namely the "inputs" of future CO2.

No, they aren't. The whole purpose of a climate model is to estimate warming from a given input of CO2. In its most recent report, issued in 2013, the U.N.'s Intergovernmental Panel on Climate Change assumes a doubling of atmospheric CO2 and predicts warming of 1.5 to 4.5 degrees Celsius--i.e., an uncertainty of output, not input.

What's more, this represents an increase in uncertainty over its 2007 report (when the range was 2.0 to 4.5 degrees). In fact, the IPCC's new estimate is now identical to Exxon's 1977 estimate and the 1979 estimate of the U.S. National Research Council.

In other words, on the crucial question, the help we're getting from climate models has not improved in 40 years and has been going backward of late.

For bonus insight, ask yourself why we still rely on computer simulations at all, rather than empirical study of climate--even though we've been burning fossil fuels for 200 years and recording temperatures even longer.

OK, many climate reporters have accepted a role as enforcers of orthodoxy, not questioners of it. But this colossal error not only falsifies the work of the IPCC over the past 28 years, it falsifies the entire climate modeling enterprise of the past half-century.

But it also explains the non sequitur at the heart of the InsideClimate News and L.A. Times exposés as well as Mr. Schneiderman's unraveling investigation. There simply never was any self-evident contradiction between Exxon's private and public statements. In emphasizing the uncertainty inherent in climate models, Exxon was telling a truth whose only remarkable feature is that it continues to elude so many climate reporters.

Credit: By Holman W. Jenkins, Jr.

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Aug 30, 2016

column: Business World

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1815145880

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Global Finance: Energy Shares' Shine Fades --- Sector is no longer top performer in S&P 500; Exxon Mobil's market cap slips $11 billion

Author: Huang, Daniel

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]15 Sep 2016: C.3.

ProQuest document link

Abstract:

A day earlier, the International Energy Agency said the slowdown in global oil demand growth has accelerated.

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Volatility in the stock market has shaken up even one of this year's big winners.

A decline in energy shares accelerated Wednesday, after Tuesday's broad selloff ended the sector's brief run as the biggest gainer in the S&P 500 so far this year. Shares of Chevron Corp. fell 1% Wednesday after shedding 2.8% a day earlier. Declines in Exxon Mobil Corp. wiped roughly $11 billion off the company's market capitalization in two days.

Energy shares fell more than 1% Wednesday even as the S&P 500 stabilized after three rocky sessions. Stocks and bonds fell Friday as investors worried that central banks could dial back their easy-money policies. Markets steadied Monday, but declines picked up again Tuesday. That selloff dragged down all 10 major sectors of the S&P 500 as well as crude-oil prices and government bonds, raising concerns that months of calm had given way to a period of volatility.

In a downdraft like this, "there's literally no place to hide," said Ted Weisberg, trader at Seaport Securities.

The moves also prolong a period of swings for the energy sector as investors grapple with its outlook.

Energy stocks have risen roughly 11% in the S&P 500 so far this year as many investors bet that oil prices had bottomed and energy firms' earnings were poised for a rebound. For three sessions through Monday, energy's year-to-date gains were the biggest of any sector. The S&P 500 is up 4% so far this year.

"When you've had a sector experience the bludgeoning that oil has had, at the first whiff of improvement it's natural to see a rally as powerful as the one that we've had," said Eric Nuttall, a portfolio manager at Sprott Asset Management. He added that he expects a tightening global oil supply and a slowly improving economic backdrop to benefit energy firms.

"Any earnings this year is backward looking," Mr. Nuttall said. "We're looking out to 2017."

Analysts expect earnings to contract in the third quarter from a year earlier but not as sharply as in previous quarters, according to FactSet. Revenue declines also are expected to moderate.

U.S. crude-oil prices have stabilized in recent months and are near where they were during the comparable period last year. U.S. oil prices averaged $46.50 a barrel in the third quarter of 2015.

Still, energy companies are forecast to report the worst earnings of any of the S&P 500's sectors in the third quarter -- a 66% drop from a year earlier, according to analysts polled by FactSet as of Friday. Stripping out energy firms, the S&P 500's estimated earnings growth would improve to 1.2% from minus-2%.

While U.S. crude-oil prices have rebounded from multiyear lows, they are still down nearly 70% from their 2008 high as concerns persist about a global glut. Oil prices slid Wednesday after weekly data from the Energy Information Administration showed rising U.S. stockpiles of refined products. A day earlier, the International Energy Agency said the slowdown in global oil demand growth has accelerated. U.S. crude prices fell 2.9% to $43.58 a barrel, their lowest settlement since Sept. 1.

It has been a similarly bumpy ride for energy shares.

The sector had its 40th daily move of 2% or more this year Tuesday, compared with eight such swings for the S&P 500.

Shares of Southwestern Energy Co., the sector's top gainer in percentage terms this year, have risen 95% to $13.89, though the price remains less than half its level two years ago.

A lack of opportunities elsewhere in the market has added to investors' reasons for pushing into energy, said Bill Herbert, head of energy research at Simmons & Co. International.

View Image - Enlarge this image.

Credit: By Daniel Huang

Subject: Stock exchanges; Investments; Crude oil prices; Energy industry

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Chevron Corp; NAICS: 324110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: C.3

Publication year: 2016

Publication date: Sep 15, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1819278170

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Exxon's Accounting Practices Are Investigated; New York attorney general's probe focuses on why Exxon is only oil firm not to write down value of assets amid price rout

Author: Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Sep 2016: n/a.

ProQuest document link

Abstract: None available.

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Exxon Mobil Corp. for years has kept the value of its huge oil and gas reserves steady in the face of slumping energy prices while rivals since 2014 have slashed $200 billion off their combined holdings.

Analysts and investors have taken notice, and now a Wall Street antagonist, New York Attorney General Eric Schneiderman, is examining accounting practices at the nation's largest energy company, according to people familiar with the matter. His office is adding scrutiny of its reserve values to its probe into Exxon's past knowledge of the impact of climate change and how it could affect its future business.

The Irving, Texas-based company has played down questions about its lack of assets write-downs, saying it is extremely conservative in booking the value of new fields and wells. That reduces its need to reduce the value of its assets if falling prices later weigh on the reserves' value, Exxon says.

Exxon declined to comment on the New York investigation, and wouldn't disclose specifics of how it evaluates assets apart from what it has said in company filings. A spokesman said Exxon follows all financial rules and regulations.

PricewaterhouseCoopers LLP, Exxon's auditor, declined to comment on the investigation.

Last year, Exxon Chief Executive Rex Tillerson told trade publication Energy Intelligence that the company has been able to avoid write-downs because it places a high burden on executives to ensure that projects can work at lower prices, and holds them accountable.

"We don't do write-downs," Mr. Tillerson told the publication. "We are not going to bail you out by writing it down. That is the message to our organization."

Exxon's total oil and gas reserves were almost 25 billion barrels at the end of last year. They include areas such as Australia and the U.S., as well as low-cost fields in Qatar and Indonesia. It regularly reports some of the lowest acquisition costs in the industry, says accounting firm EY.

The process of booking new reserves is complicated: Engineers, geophysicists and geologists pore over prospects to determine if recent discoveries qualify under regulatory guidelines as a "proved" reserve that can be extracted cost-effectively. Their judgments are fodder for accountants and executives who must sign off on decisions involving changes in price, regulation and other factors.

It is unclear at this stage what impact the New York investigation may have on Exxon, if any. Mr. Schneiderman has broad powers to investigate corporations under New York state's Martin Act, including civil and criminal claims against companies for securities violations. Exxon shares fell 1.2% to $84.03 in 4 p.m. trading on Friday.

With low crude oil and natural gas prices, billions of barrels of fuel in the ground cannot be tapped cost effectively, making reserves revisions and write-downs staples of oil-patch earnings in recent years, and helping push energy company losses to record levels.

In 2004, Royal Dutch Shell PLC was roiled by the admission that it had overstated its reserves. The company's credit rating was downgraded, several top officials were ousted and it paid penalties of $150 million to the U.S. and U.K. governments.

Exxon's ability to avoid write-downs--and potential charges to earnings that come with them--has been among the factors helping the company outperform rivals since prices began falling in mid-2014.

Exxon shares have fallen by about half of the average of Chevron Corp., Shell, Total SA and BP PLC. Since 2014, those four have booked more than $50 billion overall in write-downs and impairments .

The company has lost money for six straight quarters in its U.S. drilling business. It has had to remove the equivalent of more than 900 million barrels of U.S. natural gas reserves from its books in 2015, an acknowledgment that wells on those properties cannot currently be drilled cost effectively. When Exxon agreed to purchase shale explorer XTO Energy Inc. in 2009 for $31 billion, natural gas sold for almost double what it does now.

For many producers, such losses in net income and reserves would make write-downs inevitable, but Exxon didn't write down the overall value of its reserves. That decision "raises serious questions of financial stewardship," Paul Sankey, an oil analyst at Wolfe Research, wrote last month.

"It is impossible to believe that no assets have been impaired," he said.

John Herrlin, an analyst at Société Générale Group, differs. He wrote last month that about three fourths of Exxon's reserves are from areas with producing wells, which makes impairments less likely than in undeveloped areas.

The process for booking energy reserves is separate from accounting for how companies decide on reducing the value of those reserves may fall, called an impairment, which is logged as a charge to a company's income statement.

The first process, reserve bookings, is guided by U.S. Securities and Exchange Commission rules. Companies have to evaluate their future prospects on the basis of whether the wells would be profitable at the average price in the previous year.

Recognizing the value of those reserves is separately governed by the Financial Accounting Standards Board, an independent group that sets accounting standards for U.S. public companies. As companies spend money drilling new wells, those expenses can be capitalized as an asset. But when expected future cash flow from the reserves is no longer greater than their so-called "carrying value," which relates to the amount that was capitalized, the rules indicate they may have to be written down in value.

In 2013, the SEC asked Exxon why it hadn't booked any impairments in the previous year, citing a speech Mr. Tillerson gave in June 2012 in which he said the company was making "no money" due to declining natural-gas prices.

Exxon's response then mirrors its position now: That short-term price fluctuations aren't enough to render worthless wells that would potentially be drilled in the future. Another key to the company's assessment is the view that its assets will hold value when prices eventually rebound.

Natural gas rose substantially in 2013 after the SEC's inquiry, but many oil executives and forecasters have said they expect prices to remain low for some time.

Last year, Exxon scrutinized its assets most at risk for impairment and found that future cash flows anticipated from its fields were "substantially" higher than the book value of the asset. Exxon "does not view temporarily low prices or margins as a trigger event for conducting impairment tests," according to a company filing.

Exxon previously faced a lawsuit over its impairment practices. Plaintiffs including the Ohio state pension system alleged in a 2004 class-action suit that the company's failure to impair its properties undercut shareholders of Mobil Corp. in the 1999 deal that combined the companies.

The suit alleged that Exxon should have seen write-downs of between $3 billion to $7 billion in the late 1990s, another period of historically low prices. It included an allegation from a former Exxon insider that the company "operated under an order" by former Chief Executive Lee Raymond that "no impairment would be recorded."

Exxon denied the allegations. The lawsuit was dismissed because the statute of limitations on such claims had passed.

Dave Michaels contributed to this article.

Write to Bradley Olson at Bradley.Olson@wsj.com

Related

* New York Attorney General Employs Powerful Law in Exxon Probe

* When Should a Company Write Down Assets?

Credit: By Bradley Olson

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Sep 16, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1819682230

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

New York AG Employs Powerful Law in Exxon Probe; New York's 1921 Martin Act grants prosecutors wide jurisdiction in securities investigations

Author: Matthews, Christopher M

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]16 Sep 2016: n/a.

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Abstract:

Since 2014, oil producers world-wide have been forced to recognize that wells they plan to drill in the future are worth $200 billion less than they once thought, and revisions have become a staple of oil industry earnings, helping to push losses to record levels.

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On first blush, New York Attorney General Eric Schneiderman's probe into Exxon Mobil Corp.'s accounting practices raises some questions. For instance, why is the top cop in New York investigating the Texas-based company's financial disclosures, a job more commonly handled by the federal Securities and Exchange Commission?

But Mr. Schneiderman has been knee deep in Exxon's internal forecasting for more than a year, using a powerful New York state fraud law to investigate the company's knowledge of the impact of climate change and how it could affect its future business.

The new probe into why Exxon hasn't written down the value of its assets two years into a crash in oil prices is an outgrowth of the climate change investigation, say people familiar with the matter, and yet another example of the wide jurisdiction of New York's Martin Act.

Both probes have been examining whether Exxon, the world's largest publicly traded energy company, violated the 1921 law, under which prosecutors must prove a company misled or omitted material facts from investors while offering securities.

The law grants wide powers. It doesn't require prosecutors to prove there was criminal intent or even that there were victims of an alleged fraud, something other agencies, including the SEC, have to prove under federal securities law.

An Exxon spokesman declined to comment on the investigation but said the company didn't have any material impairment impacts in its financial results.

Similar investigations brought by at least five other state attorneys general have been hampered by aggressive moves by Exxon, which, for instance, has sought to quash subpoenas issued by Massachusetts and the U.S. Virgin Islands. But the company hasn't challenged Mr. Schneiderman's broad subpoenas for emails, financial records, internal forecasts and other documents, a nod to breadth of the Martin Act.

Still, some legal experts have questioned whether Mr. Schneiderman is overreaching with his use of the Martin Act.

"You'd think if there was an issue about marking down reserves or other misstatements, that would be the eminent province of the SEC," said James Fanto, a professor at Brooklyn Law School.

Since 2014, oil producers world-wide have been forced to recognize that wells they plan to drill in the future are worth $200 billion less than they once thought, and revisions have become a staple of oil industry earnings, helping to push losses to record levels. Exxon hasn't taken any write-downs--the only major U.S. oil producer not to do so--which has led some analysts to question its accounting practices.

"The Attorney General's office is conducting an investigation into potential business fraud, consumer fraud, and securities fraud," spokesman Eric Soufer said. "As the Attorney General has said, the company's financial disclosures--and not the accuracy of its historic climate change research--are the focus of this investigation."

Columbia Law School Professor Merritt B. Fox said the key issue for Mr. Schneiderman in either probe is whether the information Exxon allegedly withheld was, in fact, material in the eyes of the investing world.

"If they have evidence Exxon knew about the effects of climate change or falling prices on its assets and didn't disclose it to people outside, that has the possibility of being a material misstatement or omission," Professor Fox said.

But if the public could make investment decisions with other publicly available information, "it could be an issue," for Mr. Schneiderman, he said.

News of Mr. Schneiderman's new focus, reported by The Wall Street Journal on Friday, also comes amid pushback to the climate change investigations by conservative advocacy groups, lawmakers and state AGs.

The Energy & Environment Legal Institute, a conservative nonprofit, released emails last week from other AGs offices that were involved in a March press conference set up by Mr. Schneiderman to announce a coalition to combat climate change. The group, which obtained the emails through Freedom of Information requests, say they show skepticism by the other AG offices about the New York probe.

Meanwhile, a group of 11 Republican state attorneys general have filed motions to support Exxon's efforts in Massachusetts state court to challenge a subpoena sent to the company by Massachusetts Attorney General Maura Healey.

Write to Christopher M. Matthews at christopher.matthews@wsj.com

Read More

* Exxon's Accounting Practices Are Investigated

* Big Oil Companies Stay Shy Despite Upswing in Prices

* Exxon Seeking Injunction Against Climate-Change Investigation

Credit: By Christopher M. Matthews

Subject: Attorneys general; Climate change; Accounting procedures; Law schools; Fraud; Criminal investigations; Subpoenas

Location: New York

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Sep 16, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1820055953

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Exxon Faces New Scrutiny of Books

Author: Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]17 Sep 2016: A.1.

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Abstract:

Exxon Mobil Corp. for years has kept the value of its huge oil and gas reserves steady in the face of slumping energy prices while rivals since 2014 have slashed $200 billion off their combined holdings. With low crude oil and natural gas prices, billions of barrels of fuel in the ground cannot be tapped cost-effectively, making reserves revisions and write-downs staples of oil-patch earnings in recent years, and helping push energy firms' losses to record levels.

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Exxon Mobil Corp. for years has kept the value of its huge oil and gas reserves steady in the face of slumping energy prices while rivals since 2014 have slashed $200 billion off their combined holdings.

Analysts and investors have taken notice, and now a Wall Street antagonist, New York Attorney General Eric Schneiderman, is examining accounting practices at the nation's largest energy company, according to people familiar with the matter. His office is adding scrutiny of its reserve values to its probe into Exxon's past knowledge of the impact of climate change and how it could affect its future business.

The Irving, Texas-based company has played down questions about its lack of assets write-downs, saying it is extremely conservative in booking the value of new fields and wells. That reduces its need to reduce the value of its assets if falling prices later weigh on the reserves' value, Exxon says.

Exxon declined to comment on the New York investigation, and wouldn't disclose specifics of how it evaluates assets apart from what it has said in company filings. A spokesman said Exxon follows all financial rules and regulations.

PricewaterhouseCoopers LLP, Exxon's auditor, declined to comment on the investigation.

Last year, Exxon Chief Executive Rex Tillerson told trade publication Energy Intelligence that the company has been able to avoid write-downs because it places a high burden on executives to ensure that projects can work at lower prices, and holds them accountable.

"We don't do write-downs," Mr. Tillerson told the publication. "We are not going to bail you out by writing it down. That is the message to our organization."

Exxon's total oil and gas reserves were almost 25 billion barrels at the end of last year. They include areas such as Australia and the U.S., as well as low-cost fields in Qatar and Indonesia. It regularly reports some of the lowest acquisition costs in the industry, says accounting firm EY.

The process of booking new reserves is complicated: Engineers, geophysicists and geologists pore over prospects to determine if recent discoveries qualify under regulatory guidelines as a "proved" reserve that can be extracted cost-effectively. Their judgments are fodder for accountants and executives who must sign off on decisions involving changes in price, regulation and other factors.

It is unclear at this stage what impact the New York investigation may have on Exxon, if any. Mr. Schneiderman has broad powers to investigate corporations under New York state's Martin Act, including civil and criminal claims against companies for securities violations. Exxon shares fell 1.2% to $84.03 at 4 p.m. in Friday trading.

With low crude oil and natural gas prices, billions of barrels of fuel in the ground cannot be tapped cost-effectively, making reserves revisions and write-downs staples of oil-patch earnings in recent years, and helping push energy firms' losses to record levels.

In 2004, Royal Dutch Shell PLC was roiled by the admission that it had overstated its reserves. The company's credit rating was downgraded, several top officials were ousted and it paid penalties of $150 million to the U.S. and U.K. governments.

Exxon's ability to avoid write-downs -- and potential charges to earnings that come with them -- has been among the factors helping the company outperform rivals.

Exxon shares have fallen by about half of the average of Chevron Corp., Shell, Total SA and BP PLC. Since 2014, those four have booked more than $50 billion overall in write-downs and impairments.

The company has lost money for six straight quarters in its U.S. drilling business. It has had to remove the equivalent of more than 900 million barrels of U.S. natural gas reserves from its books in 2015, an acknowledgment that wells on those properties cannot currently be drilled costly effectively. When Exxon agreed to purchase XTO Energy Inc. in 2009 for $31 billion, natural gas sold for almost double what it does now.

For many producers, such losses in net income and reserves would make write-downs inevitable, but Exxon didn't write down the overall value of its reserves. That decision "raises serious questions of financial stewardship," Paul Sankey, an oil analyst at Wolfe Research, wrote last month.

"It is impossible to believe that no assets have been impaired," he said.

John Herrlin, an analyst at Societe Generale Group, differs. He wrote last month that about three fourths of Exxon's reserves are from areas with producing wells, which makes impairments less likely than in undeveloped areas.

The process for booking energy reserves is separate from accounting for how companies decide on reducing the value of those reserves, an impairment, which is a charge to a company's income statement.

The first process, reserve bookings, is guided by U.S. Securities and Exchange Commission rules. Companies have to evaluate their future prospects on the basis of whether the wells would be profitable at the average price in the previous year.

Recognizing the value of those reserves is separately governed by the Financial Accounting Standards Board, an independent group that sets accounting standards for U.S. public companies. As companies spend money drilling new wells, those expenses can be capitalized as an asset. But when expected future cash flow from the reserves is no longer greater than their so-called "carrying value," the accounting rules indicate they may have to be written down in value.

In 2013, the SEC asked Exxon why it hadn't booked any impairments in the previous year, citing a speech Mr. Tillerson gave in June 2012 in which he said the company was making "no money" due to declining natural-gas prices.

Exxon's response then mirrors its position now: That short-term price fluctuations aren't enough to render worthless wells that would potentially be drilled in the future. Another key to the company's assessment is the view that its assets will hold value when prices eventually rebound.

---

Dave Michaels contributed to this article.

Credit: By Bradley Olson

Subject: Natural gas reserves; Writedowns; Oil reserves; Accounting procedures

Location: United States--US

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.1

Publication year: 2016

Publication date: Sep 17, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1821708038

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1821708038?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Asset Values Questioned

Author: Rapoport, Michael; Olson, Bradley; Dawson, Chester

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]19 Sep 2016: C.6.

ProQuest document link

Abstract:

Exxon is careful, testing a potential investment under every price scenario before committing to it, so that even a prolonged price slump won't derail the project, said Derek Ryder, a retired reservoir engineer specializing in reserves accounting who spent most of his career as an executive at Exxon subsidiary Imperial Oil.

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Exxon Mobil Corp. is under scrutiny for a question that is fraught for any business: When should a company decide its assets literally aren't worth it?

New York Attorney General Eric Schneiderman is investigating why the oil giant hasn't written down the value of its assets even as others have done so due to plummeting crude prices. It is an issue that is particularly knotty in the energy industry, where the rules about valuing and writing down assets are complex. And a lot depends on what a company expects for the future: Will oil prices rebound, or stay below $50 a barrel?

The answer can make a big difference for investors -- if a company decides its assets have lost value and should be written down, it hurts earnings and book value, or a company's net worth. And the leeway allowed in making that decision means there is always a motivation for a company to be overly optimistic about the future to avoid an earnings hit today.

"There's definitely a temptation all the time," said Dan Amiram, an associate professor of business accounting at Columbia University's business school. Companies "will use discretion in accounting to push the envelope" away from taking write-downs.

But some in the oil industry said Exxon has a good reputation for avoiding aggressive accounting practices. They think it may be justified in not writing down its assets. "They love stability, they are one of the most compliant companies in the business," said John Hofmeister, a former president of Royal Dutch Shell PLC's U.S. business.

In a statement Friday, Exxon said its results were in accordance with accounting and reporting rules. It declined to comment on The Wall Street Journal's report of Mr. Schneiderman's investigation. A spokesman for Mr. Schneiderman declined to comment.

Debate about write-downs isn't limited to the energy industry. After the financial crisis, banks faced scrutiny over decisions to avoid write-downs of some risky, hard-to-trade securities.

Adding complexity to the question of when a write-down should occur in the energy industry: The way oil and gas reserves are recorded as assets to begin with depends in part on whether they can be extracted and whether it is cost-effective to do so.

The oil-price crash has led some companies to take big write-downs.

Chevron Corp., for instance, recorded write-downs and other noncash charges totaling $2.6 billion in the second quarter, reflecting "lower oil prices and our ongoing adjustment to a lower oil price world," the company said. Shell took $3.7 billion in write-downs in 2015 to reflect a weaker long-term outlook for energy prices, plus $4.6 billion for scrapping Alaska drilling and Canada oil-sands projects.

Exxon maintains the value of reserves tied to decades-long projects shouldn't be affected by price fluctuations it views as temporary. The company did acknowledge in its latest annual report that future write-downs are possible if long-term price increases don't materialize.

Exxon is careful, testing a potential investment under every price scenario before committing to it, so that even a prolonged price slump won't derail the project, said Derek Ryder, a retired reservoir engineer specializing in reserves accounting who spent most of his career as an executive at Exxon subsidiary Imperial Oil.

Exxon is particularly reluctant to write down an asset because that removes its value permanently, he noted. "Impairment is a one-way trap door. Once they're gone, they're gone," said Mr. Ryder.

The leeway companies have around write-downs may also make it hard for regulators to prove any wrongdoing on Exxon's part, Mr. Amiram said. "It will be very difficult in this case unless there's a smoking gun," he added.

Credit: By Michael Rapoport, Bradley Olson and Chester Dawson

Subject: Energy industry; Writedowns

Location: New York

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: C.6

Publication year: 2016

Publication date: Sep 19, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1820546449

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street J ournal

SEC Probes Exxon Over Accounting for Climate Change; Probe also examines company's practice of not writing down the value of oil and gas reserves

Author: Olson, Bradley; Viswanatha, Aruna

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Sep 2016: n/a.

ProQuest document link

Abstract:

The U.S. Securities and Exchange Commission is investigating how Exxon Mobil Corp. values its assets in a world of increasing climate-change regulations , a probe that could have far-reaching consequences for the oil and gas industry.

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The U.S. Securities and Exchange Commission is investigating how Exxon Mobil Corp. values its assets in a world of increasing climate-change regulations , a probe that could have far-reaching consequences for the oil and gas industry.

The SEC sought information and documents in August from Exxon and the company's auditor, PricewaterhouseCoopers LLP, according to people familiar with the matter. The federal agency has been receiving documents the company submitted as part of a continuing probe into similar issues begun last year by New York Attorney General Eric Schneiderman, the people said.

The SEC's probe is homing in on how Exxon calculates the impact to its business from the world's mounting response to climate change, including what figures the company uses to account for the future costs of complying with regulations to curb greenhouse gases as it evaluates the economic viability of its projects.

The decision to step into an Exxon investigation and seek climate-related information represents a moment in the effort to take climate change more seriously in the financial community, said Andrew Logan, director of the oil and gas program at Ceres, a Boston-based advocacy organization that has pushed for more carbon-related disclosure from companies.

"It's a potential tipping point not just for Exxon, but for the industry as a whole," he said.

As part of its probe, the SEC is also examining Exxon's longstanding practice of not writing down the value of its oil and gas reserves when prices fall, people familiar with the matter said. Exxon is the only major U.S. producer that hasn't taken a write down or impairment since oil prices plunged two years ago. Peers including Chevron Corp. have lowered valuations by a collective $50 billion.

"The SEC is the appropriate entity to examine issues related to impairment, reserves and other communications important to investors," said Exxon spokesman Alan Jeffers. "We are fully complying with the SEC request for information and are confident our financial reporting meets all legal and accounting requirements."

A spokeswoman for PwC declined to comment. An SEC spokeswoman declined to comment. A spokesman for Mr. Schneiderman said the attorney general wouldn't comment on the matter.

The SEC probe isn't believed to involve other energy companies, according to a person familiar with the matter.

Activists, members of Congress and former government officials have ratcheted up pressure on the SEC in the past year to do more to assess climate risks. Four congressional Democrats including U.S. Rep. Ted Lieu last year asked the SEC to investigate Exxon over its climate-related science and advocacy. Three former U.S. treasury secretaries wrote the SEC in July urging the agency to adopt industry-specific standards for disclosure in company filings.

A potential sticking point in the probe is what price Exxon uses to assess the "price of carbon"--the cost of regulations such as a carbon tax or a cap-and-trade system to push down emissions--when evaluating certain future oil and gas prospects, people familiar with the matter said. The SEC is asking how Exxon's carbon price affects its balance sheet and the outlook for its future, the people said.

When such a theoretical price for carbon is low, more oil and gas wells would be commercially viable. Conversely, a high carbon price would make more of Exxon's assets look uneconomic to pull out of the ground in future years.

In 2014, Exxon determined that none of its assets were at risk of being rendered less valuable by impacts from the global response to climate change.

Exxon doesn't disclose the exact price it uses to determine the commercial viability of its projects--outside of a general range of $20 to $80 a metric ton for the future--but many of its rivals, including Royal Dutch Shell PLC and BP PLC, do. Both Shell and BP said they use an internal price of roughly $40 a metric ton to decide whether to proceed with a project.

By contrast, Houston-based ConocoPhillips said it uses an internal carbon price range of between $6 and $51 a metric ton, depending on a project's location and annual projected emissions.

Exxon has ardently defended its record of climate research against critics, as well as its view that the use of fossil fuels will grow in coming decades, which corresponds to the predictions of major global energy forecasters.

Still, some investors such as the California Public Employees' Retirement System say Exxon and other energy companies should acknowledge the growing global response to climate change may mean that it will never be able to tap future wells that make up a great deal of its multibillion-dollar value.

Exxon also has defended its practice of not writing down the value of assets, saying that it is extremely conservative in booking the value of new fields and wells, which lowers its need to reduce the value of those assets if falling prices later affect the reserves' value.

In response to a report in The Wall Street Journal about the New York attorney general's probe into write-downs last week, an Exxon spokesman said the company follows all rules and regulations.

Write to Bradley Olson at Bradley.Olson@wsj.com and Aruna Viswanatha at Aruna.Viswanatha@wsj.com

Related Coverage

* For U.S. firms, Figuring Out GAAP Is Not the Only Challenge (Sept. 19)

* When Should a Company Write Down Assets (Sept. 16)

* New York AG Employs Powerful Law in Exxon Probe (Sept. 16)

* Companies Might Have to Disclose Their Carbon-Related Risks (Sept. 13)

* Exxon Seeking Injunction Against Climate-Change Investigation (June 15)

Credit: By Bradley Olson and Aruna Viswanatha

Subject: Climate change; Carbon; Gases; Energy industry; Natural gas reserves; Oil reserves

Location: United States--US

People: Schneiderman, Eric

Company / organization: Name: Congress; NAICS: 921120; Name: PricewaterhouseCoopers LLP; NAICS: 541211, 54 1611; Name: Chevron Corp; NAICS: 324110, 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Public Employees Retirement System-California; NAICS: 525110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Sep 20, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1821237274

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1821237274?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

SEC Probes Exxon Over Accounting For Climate Change

Author: Olson, Bradley; Viswanatha, Aruna

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]21 Sep 2016: A.1.

ProQuest document link

Abstract:

The U.S. Securities and Exchange Commission is investigating how Exxon Mobil Corp. values its assets in a world of increasing climate-change regulations, a probe that could have far-reaching consequences for the oil and gas industry.

Links: 360 Link to Full Text

Full text:  

The U.S. Securities and Exchange Commission is investigating how Exxon Mobil Corp. values its assets in a world of increasing climate-change regulations, a probe that could have far-reaching consequences for the oil and gas industry.

The SEC sought information and documents in August from Exxon and the company's auditor, PricewaterhouseCoopers LLP, according to people familiar with the matter. The federal agency has been receiving documents the company submitted as part of a continuing probe into similar issues begun last year by New York Attorney General Eric Schneiderman, the people said.

The SEC's probe is homing in on how Exxon calculates the impact to its business from the world's mounting response to climate change, including what figures the company uses to account for the future costs of complying with regulations to curb greenhouse gases as it evaluates the economic viability of its projects.

The decision to step into an Exxon investigation and seek climate-related information represents a moment in the effort to take climate change more seriously in the financial community, said Andrew Logan, director of the oil and gas program at Ceres, a Boston-based advocacy organization that has pushed for more carbon-related disclosure from companies.

"It's a potential tipping point not just for Exxon, but for the industry as a whole," he said.

As part of its probe, the SEC is also examining Exxon's longstanding practice of not writing down the value of its oil and gas reserves when prices fall, people familiar with the matter said. Exxon is the only major U.S. producer that hasn't taken a write down or impairment since oil prices plunged two years ago. Peers including Chevron Corp. have lowered valuations by a collective $50 billion.

"The SEC is the appropriate entity to examine issues related to impairment, reserves and other communications important to investors," said Exxon spokesman Alan Jeffers. "We are fully complying with the SEC request for information and are confident our financial reporting meets all legal and accounting requirements."

A spokeswoman for PwC declined to comment. An SEC spokeswoman declined to comment. A spokesman for Mr. Schneiderman said the attorney general wouldn't comment on the matter.

The SEC probe isn't believed to involve other energy companies, according to a person familiar with the matter.

Activists, members of Congress and former government officials have ratcheted up pressure on the SEC in the past year to do more to assess climate risks. Four congressional Democrats including U.S. Rep. Ted Lieu last year asked the SEC to investigate Exxon over its climate-related science and advocacy. Three former U.S. treasury secretaries wrote the SEC in July urging the agency to adopt industry-specific standards for disclosure in company filings.

A potential sticking point in the probe is what price Exxon uses to assess the "price of carbon" -- the cost of regulations such as a carbon tax or a cap-and-trade system to push down emissions -- when evaluating certain future oil and gas prospects, the people said. The SEC is asking how Exxon's carbon price affects its balance sheet and the outlook for its future, the people said.

When such a theoretical price for carbon is low, more oil and gas wells would be commercially viable. Conversely, a high carbon price would make more of Exxon's assets look uneconomic to pull out of the ground in future years.

In 2014, Exxon determined that none of its assets are at risk of being rendered less valuable by impacts from the global response to climate change.

Exxon doesn't disclose the exact price it uses to determine the commercial viability of its projects -- outside of a general $20-$80 range for the future -- but many of its rivals, including Royal Dutch Shell PLC and BP PLC, do. Both Shell and BP say they use an internal price of roughly $40 a metric ton to decide whether to proceed with a project.

By contrast, Houston-based ConocoPhillips said it uses an internal carbon price range of between $6 and $51 a metric ton, depending on a project's location and annual projected emissions.

Exxon has ardently defended its record of climate research against critics, as well as its view that the use of fossil fuels will grow in coming decades, which corresponds to the predictions of major global energy forecasters.

Still, some investors such as the California Public Employees' Retirement System say Exxon and other energy companies should acknowledge the growing global response to climate change may mean that it will never be able to tap future wells that make up a great deal of its multibillion-dollar value.

Exxon also has defended its practice of not writing down the value of assets, saying that it is extremely conservative in booking the value of new fields and wells, which lowers its need to reduce the value of those assets if falling prices later affect the reserves' value.

Credit: By Bradley Olson and Aruna Viswanatha

Subject: Energy industry; Natural gas reserves; Oil reserves; Climate change; Accounting policies

Location: United States--US

People: Lieu, Ted Schneiderman, Eric

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Securities & Exchange Commission; NAICS: 926150

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.1

Publication year: 2016

Publication date: Sep 21, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1821710006

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1821710006?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Oil Sector, Investors React to SEC Probe of Exxon Over Climate Change; Many see investigation as potentially transformative moment for U.S. companies

Author: Olson, Bradley; Rapoport, Michael

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Sep 2016: n/a.

ProQuest document link

Abstract:

According to a 2014 report from Ceres, an advocacy group that has pushed for more corporate disclosure about the effects of climate change, 41% of S&P 500 companies didn't address climate change in their 2013 securities filings, and those that did varied widely in the detail and quality of their disclosures.

Links: 360 Link to Full Text

Full text:  

The federal investigation of how Exxon Mobil Corp. values assets in a world of increasing climate change regulations elicited sharp reactions on Wednesday, with some investors seeing it as a tipping point in a campaign to get companies to disclose climate risks, and some oil industry leaders calling it a politically motivated attack.

But many agreed on one thing: It was a potentially transformative moment for U.S. companies, which now have to worry about regulators' scrutiny of future climate change impacts more seriously than before.

The probe by the U.S. Securities and Exchange Commission is focused on how Exxon calculates the impact to its business from climate change, including what figures the company uses to evaluate the viability of future projects.

The SEC hasn't publicly disclosed it is investigating Exxon, but the probe was confirmed by an Exxon spokesman on Tuesday.

Defenders of Exxon saw the probe as an indication that the SEC has moved into partisan politics, taking up a cause championed by some Democratic state attorneys general, who have led probes into the company's response to climate change .

"It seems like to me it's a witch hunt," Scott Sheffield, chief executive of oil producer Pioneer Natural Resources Co., said during an industry conference Wednesday, adding that Exxon is often a target in such matters because of its size.

Some investors and activists, meanwhile, cited what they saw as Exxon's insularity, and its refusal to face up to potential threats to its future value, as a potential rationale for the SEC.

The company's pushback amid pressure from some shareholders on the issue is emblematic of the response of many U.S. oil and gas companies, a strategy that is likely to change in the face of new SEC scrutiny, said Anne Simpson, the investment director for sustainability at the California Public Employees' Retirement System.

"Exxon has not been open to the questions and concerns of its long-term investors on this issue," she said. "Five years ago it may have been plausible for Exxon to say that it did not have to think about a transition in energy use, but it can't say that now."

Exxon and the SEC declined to comment on Wednesday.

The central question for companies and regulators is how the global response to climate change--which has begun to come together after a landmark agreement to reduce emissions between nearly 200 countries in Paris last year--will affect industries from oil and gas to utilities and transportation.

While many companies, investors and analysts agree that many industries will be affected as countries move to reduce emissions, there remains considerable debate about the extent of the impact.

Moody's Investors Service in June said it would begin to assess the credit implications of a transition away from carbon-intensive energy use. Coal companies and power utilities are among the most exposed, according to Moody's.

A 2015 report by BlackRock Inc., which manages nearly $5 trillion in assets, opined that efforts to mitigate climate change will produce winners and losers that won't always be obvious. Some low-cost operators, for example, may "do fine," the report said.

For years, an array of investors and activists have pressured U.S. regulators to insist that companies do more to assess how their fortunes may rise or fall as the global effort to reduce emissions intensifies. Under guidance issued by the SEC in 2010, companies must disclose the impact of climate change and the potential risk to their future business if it is deemed material.

Critics say the SEC hasn't done enough to force companies to tell investors more about their exposure to climate change. The agency is currently looking at the possibility of imposing stiffer disclosure requirements.

"The SEC has been noticeably quiet in enforcing the climate disclosures it called for," said Michael Gerrard, an environmental-law expert at Columbia Law School.

According to a 2014 report from Ceres, an advocacy group that has pushed for more corporate disclosure about the effects of climate change, 41% of S&P 500 companies didn't address climate change in their 2013 securities filings, and those that did varied widely in the detail and quality of their disclosures.

Some oil companies have pushed back against the idea of fuller climate change disclosures, in comment letters to the SEC on its current potential overhaul of disclosure requirements. Chevron Corp. said in a July letter that its annual report already contained a significant discussion about the potential risks of additional regulation of greenhouse gases, and we "do not believe requiring a more structured disclosure of risk would aid the reasonable investor in understanding the risks facing the company."

Exxon weighed in last month. While it didn't specifically mention climate change, it said the SEC "should avoid promoting political, social, and public policy objectives" in its disclosure requirements.

Erin Ailworth contributed to this article.

Write to Bradley Olson at Bradley.Olson@wsj.com and Michael Rapoport at Michael.Rapoport@wsj.com

Credit: By Bradley Olson and Michael Rapoport

Subject: Climate change; Emissions; Disclosure; Natural gas utilities

Location: United States--US

People: Simpson, Anne

Company / organization: Name: Pioneer Natural Resources Co; NAICS: 211111; Name: Moodys Investors Service Inc; NAICS: 522110, 523930, 561450; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Public Employees Retirement System-California; NAICS: 525110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Sep 21, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1821936034

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1821936034?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Business News: Oil Industry, Investors React to SEC's Exxon Climate-Change Probe

Author: Olson, Bradley; Rapoport, Michael

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]22 Sep 2016: B.3.

ProQuest document link

Abstract:

The federal investigation of how Exxon Mobil Corp values assets in a world of increasing climate-change regulations elicited sharp reactions on Wednesday, with some investors seeing it as a tipping point in a campaign to get companies to disclose climate risks, and some oil industry leaders calling it a politically motivated attack.

Links: 360 Link to Full Text

Full text:  

The federal investigation of how Exxon Mobil Corp values assets in a world of increasing climate-change regulations elicited sharp reactions on Wednesday, with some investors seeing it as a tipping point in a campaign to get companies to disclose climate risks, and some oil industry leaders calling it a politically motivated attack.

But many agreed on one thing: It was a potentially transformative moment for U.S. companies, which now have to worry about regulators' scrutiny of future climate change impacts more seriously than before.

The probe by the U.S. Securities and Exchange Commission is focused on how Exxon calculates the impact to its business from climate change, including what figures the company uses to evaluate the viability of future projects.

The SEC hasn't publicly disclosed it is investigating Exxon, but the probe was confirmed by an Exxon spokesman on Tuesday.

Defenders of Exxon saw the probe as an indication that the SEC has moved into partisan politics, taking up acause championed by some Democratic state attorneys general,who have led probes into the company's response to climate change.

"It seems like to me it's a witch hunt," Scott Sheffield, chief executive of oil producer Pioneer Natural Resources Co., said during an industry conference Wednesday.

Some investors and activists, meanwhile, cited what they saw as Exxon's insularity as a potential rationale for the SEC.

The company's pushback amid pressure from some shareholders on the issue is emblematic of the response of many U.S. oil and gas companies, a strategy that is likely to change in the face of new SEC scrutiny, said Anne Simpson, the investment director for sustainability at the California Public Employees' Retirement System.

Exxon and the SEC declined to comment on Wednesday.

---

Erin Ailworth contributed to this article.

Credit: By Bradley Olson and Michael Rapoport

Subject: Disclosure; Natural gas utilities; Climate change

Location: United States--US

Company / organization: Name: Securities & Exchange Commission; NAICS: 926150; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2016

Publication date: Sep 22, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1822061117

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1822061117?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Warns on Reserves as It Posts Lower Profit; Oil producer to examine whether assets in an area devastated by low prices and environmental concerns should be written down

Author: Olson, Bradley; Cook, Lynn

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Oct 2016: n/a.

ProQuest document link

Abstract:

Canada's oil sands. Since 1999, energy companies have invested more than $200 billion in Alberta's oil sands, which has the third largest oil reserves behind Venezuela and Saudi Arabia, says the Canadian Association of Petroleum Producers.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. warned that it may be forced to eliminate almost 20% of its future oil and gas prospects, yielding to the sharp decline in global energy prices.

Under investigation by the U.S. Securities and Exchange Commission and New York state over its accounting practices --and the impact of future climate change regulations on its business--Exxon on Friday disclosed that some 4.6 billion barrels of oil in its reserves, primarily in Canada, may be too expensive to tap.

Exxon is facing near- and long-term threats as it seeks to exploit the full value of a vast oil and gas portfolio that stretches from Texas to the Caspian Sea, and deliver the handsome dividends that its shareholders have come to expect since it was part of John D. Rockefeller's Standard Oil.

Today, the company is suffering amid a two-year plunge in oil prices that has a barrel trading for around $50, a level Chief Executive Rex Tillerson believes may linger as U.S. shale producers ramp up at the first uptick in prices, prolonging the current glut and putting a ceiling on any price upswing.

Earlier this year, Exxon lost the triple-A bond rating it had held from Standard & Poor's Rating Services since 1930, a standing of creditworthiness shared with just two other companies, Microsoft Corp. and Johnson & Johnson. Last year, it failed to find enough new oil and gas to replace what it produced for the first time in 20 years. Its profits in the last 12 months are the lowest since 1999, before it merged with Mobil Corp.

Exxon is alone among major oil companies in not having written down the value of its future wells as prices fell. It has said it follows conservative practices in booking reserves. It now plans to examine its assets to test, under rules governed by accounting standards, whether they are worth less than carried on its books.

The company said the 20% reserves reductions, which are governed separately by SEC rules, may be necessary based on the average 2016 price by the end of the year, though higher prices in November and December could mitigate the extent of the decline. It added that any reserve reductions could be added back if prices recover.

In an investor call on Friday, Exxon declined to discuss potential reserve write-offs or accounting write-downs in detail beyond its statement. The SEC declined to comment on Exxon's disclosure.

"Exxon has long been the best at what they do, but these external constraints are putting them more in line with everyone else, forcing them to the level of their competitors," said Sean Heinroth, a principal in the energy practice at management consultancy A.T. Kearney.

Though Exxon didn't mention climate change or regulators in its disclosure, most of the assets it said may not be economic are among the most scrutinized by climate change activists: Canada's oil sands.

Since 1999, energy companies have invested more than $200 billion in Alberta's oil sands, which has the third largest oil reserves behind Venezuela and Saudi Arabia, says the Canadian Association of Petroleum Producers.

Nine of the world's top oil companies, including Exxon, Chevron and Royal Dutch Shell PLC, have been counting on wringing more Canadian crude from the ground in the coming decades. Combined, Canadian crude accounts for 23% of the firms' proven reserves, according to data from investment bank Peters & Co.--up from only 5% in 2006.

New investments in the oil sands may be much harder to come by after Exxon's announcement, said Andrew Logan, director of the oil and gas program at Ceres, a Boston-based nonprofit that has pushed Exxon and other companies for better disclosure on the potential impact of climate change on the energy business.

"Why would any company invest billions of dollars in a new oil sands project now, given the near certainty that the world will be transitioning away from fossil fuels during the decades it will take for that project to pay back?" Mr. Logan said.

The potential loss of reserves has broad ramifications for Canada, which depends on the development of its crude stores to support its economy, but like other western countries has been moving to strengthen regulations to address climate change. Canadian Prime Minister Justin Trudeau earlier this month unveiled a national carbon-pricing proposal, sparking an immediate clash between the national government and the province of Alberta.

The Liberal government's proposal to charge a price for carbon emissions compounds the headwinds energy companies already face if they want to mine Canada's oil sands for decades to come.

Amy Myers Jaffe, executive director for Energy and Sustainability at University of California, Davis, said Exxon's warning signals that it doesn't believe oil prices will rise significantly in the near future.

"This company had positioned itself for growth and oil sands were a key part of its strategy," she said, adding: "If lots of companies have to do write downs on their Canadian reserves, it sends a gloomy message about the oil sands," she said.

Longer term, Exxon faces headwinds from regulations aimed at reducing carbon dioxide and other greenhouse gas emissions, measures that are widely expected to fall most heavily on its industry.

Exxon's other major obstacle: U.S. competition. Advanced shale drilling techniques have unleashed a new wave of American oil into world markets. Those drilling and fracking techniques have made smaller American companies the industry's new "swing producers," or those most able to ramp up output quickly.

Exxon's Mr. Tillerson acknowledged that prospect in a recent speech at a conference in London where other energy executives were forecasting a sharp supply shortfall in coming years.

"I don't necessarily agree with the premise," he said.

Exxon shares fell 2.5% to $84.78 at 4 p.m. in Friday trading after reporting a quarterly profit that declined 38% compared with a year ago.

Write to Bradley Olson at Bradley.Olson@wsj.com and Lynn Cook at lynn.cook@wsj.com

Earnings from the oil patch

* Chevron Returns to Profit, but Revenue Slides

* Phillips 66 Posts Revenue and Profit Decline

* Total's Profit Jumps as Cost-Cutting Bears Fruit

* ConocoPhillips Revenue Slides

* Statoil Posts Wider Loss, Cuts Capital Spending Further

Further reading

* China's Oil Giants Shrink Their Spending (Oct. 28)

* Oil Companies Shift Exploration Tactics, Curb Spending (Oct. 26)

* Exxon, Chevron Shareholders Narrowly Reject Climate-Change Stress Tests (May 25)

Credit: By Bradley Olson and Lynn Cook

Subject: Climate change; Oil sands; Accounting; Prices; Rating services; Bond ratings; Disclosure; Energy industry; Natural gas reserves; Oil reserves

Location: United States--US Canada

People: Tillerson, Rex W

Company / organization: Name: Microsoft Corp; NAICS: 511210, 334614; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Standard & Poors Corp; NAICS: 541519, 511120, 523999, 561450; Name: Johnson & Johnson; NAICS: 339113, 339115, 325412, 325611, 325620

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Oct 28, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1833107580

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1833107580?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Energy Slump Mars Exxon, Chevron Profit; Earnings fall by more than a third at America's two largest oil producers while France's Total turns up

Author: Olson, Bradley; Williams, Selina

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Oct 2016: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:  

Third-quarter earnings fell well below year-earlier levels at some of the world's biggest oil companies, further evidence their businesses face a long road to financial recovery with crude trading around $50 a barrel.

While many energy companies sounded a note of optimism that the worst of the two-year oil price crash is over, quarterly profits disclosed this week by Exxon Mobil Corp. Chevron Corp., Statoil ASA and others generally were lower than a year ago. For the last 12 month stretch, earnings were among the lowest for the industry in more than 15 years.

Exxon, the world's largest publicly-traded oil producer, reported a 38% decline in quarterly profit , its eighth straight quarter of year-over-year declines, as revenue slid more than analysts expected on a prolonged swoon in oil prices . Its third-quarter earnings fell to $2.65 billion, or 63 cents a share, from $4.24 billion, or $1.01 a share, a year earlier.

Results were hurt by weaker profit in its downstream or refining division, which had previously been a boon amid lower prices for oil and gas. In the latest quarter, downstream earnings were $1.2 billion, $804 million lower than in the year-earlier period.

Exxon slashed its capital and exploration spending 45% from a year ago to $4.19 billion, bringing 2016's decline to 39%.

Rex Tillerson, Exxon's chief executive, said that the "operating environment remains challenging," although he and other oil executives recently have pointed to signs of improvement.

Chevron said its quarterly profit fell 35% from a year earlier to $1.3 billion. Chief Executive John Watson said the results, though down from a year ago, were improved from the first two quarters of the year.

The company has cut capital spending and operating and administrative expenses by more than $10 billion from the first nine months of 2015 "as a result of a series of deliberate actions we have taken," he said.

French oil giant Total SA was a positive outlier among the major oil companies. It said Friday that its third-quarter net profit nearly doubled from the same period a year earlier, thanks to deep cost cuts and rising output. Its net profit rose 81% to $1.95 billion over the period, while overall revenue contracted 8% to $37.41 billion.

"Cost cuts have been accelerated and we will work more on it," said Total finance chief Patrick de La Chevardière.

Many larger oil companies are close to generating enough cash to pay for dividends and new investment. That's an inflection point that has been closely watched by investors as a barometer for a market turnaround.

Further spending reductions have emerged as a peculiar form of bragging rights, with one company after another rallying after revealing the success of cost-cutting efforts. ConocoPhillips shares were up 4% on Friday on top of a 5% gain Thursday after disclosing plans to cut spending by an additional $300 million.

Oil giants are looking ahead to 2017 for signs of a modest recovery. The Organization of Petroleum Exporting Countries is weighing an agreement that could continue to prop up prices.

Several major discoveries have added to positive sentiment, including a recent Exxon find in Nigeria that could hold up to a billion barrels.

"The worst is over for the sector," said Brian Youngberg, an energy analyst with brokerage Edward D. Jones & Co. in St. Louis. "It doesn't mean oil is going to go way up, but conditions are gradually improving as markets rebalance and the companies reduce spending."

Write to Bradley Olson at Bradley.Olson@wsj.com and Selina Williams at selina.williams@wsj.com

Related

* Oil Prices Sag Ahead of OPEC Meeting

Credit: By Bradley Olson and Selina Williams

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Oct 28, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1833157863

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1833157863?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

In Shift, Exxon Signals Energy Reserves at Risk

Author: Olson, Bradley; Cook, Lynn

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]29 Oct 2016: A.1.

ProQuest document link

Abstract:

Canada's oil sands. Since 1999, energy companies have invested more than $200 billion in Alberta's oil sands, which has the third largest oil reserves behind Venezuela and Saudi Arabia, says the Canadian Association of Petroleum Producers.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. warned that it may have to cut nearly 20% of its oil and gas reserves, and possibly write down some assets, capitulating to the slump in global energy prices after years of keeping the value of its massive holdings steady.

On Friday, Exxon disclosed that some 4.6 billion barrels in its reserves, primarily in Canada, may be too expensive to tap. While the company isn't yet writing down the value of those assets, for accounting purposes, it is acknowledging how low energy prices may impact the company for years to come.

Analysts and investors have noted that Exxon has been an outlier among energy producers in its decision to keep its reserve values steady, while competitors have taken billions of dollars in write-downs. New York Attorney General Eric Schneiderman is examining the firm's accounting for its reserves, as well as its past knowledge of the impact of climate change on its business. The U.S. Securities and Exchange Commission is conducting a similar inquiry.

In an investor call on Friday, Exxon declined to discuss potential reserve write-offs or accounting write-downs in detail beyond its statement. The SEC declined to comment.

"Exxon has long been the best at what they do, but these external constraints are putting them more in line with everyone else, forcing them to the level of their competitors," said Sean Heinroth, a principal in the energy practice at management consultancy A.T. Kearney.

Exxon is facing near- and long-term threats as it seeks to exploit the full value of a vast oil and gas portfolio that stretches from Texas to the Caspian Sea, and deliver the handsome dividends that its shareholders have come to expect since it was part of John D. Rockefeller's Standard Oil.

Today, the company is suffering amid a two-year plunge in oil prices that has a barrel trading for around $50, a level Chief Executive Rex Tillerson believes may linger as U.S. shale producers ramp up at the first uptick in prices, prolonging the current glut and putting a ceiling on any price upswing.

Mr. Tillerson last year told a trade publication that the company avoids write-downs because it ratchets up pressure on managers to make projects work.

Earlier this year, Exxon lost the triple-A bond rating it had held from Standard & Poor's Rating Services since 1930, a standing of creditworthiness shared with just two other companies, Microsoft Corp. and Johnson & Johnson. Last year, it failed to find enough new oil and gas to replace what it produced for the first time in 20 years. Its profits in the last 12 months are the lowest since 1999, before it merged with Mobil Corp.

Exxon is alone among major oil companies in not having written down the value of its future wells as prices fell. It has said it follows conservative practices in booking reserves. It now plans to examine its assets to test, under rules governed by accounting standards, whether they are worth less than carried on its books. The company said the 20% reserves reductions, which are governed separately by SEC rules, may be necessary based on the average 2016 price by the end of the year, though higher prices in November and December could mitigate the extent of the decline.

Though Exxon didn't mention climate change or regulators in its disclosure, most of the assets it said may not be economic are among the most scrutinized by climate-change activists: Canada's oil sands.

Since 1999, energy companies have invested more than $200 billion in Alberta's oil sands, which has the third largest oil reserves behind Venezuela and Saudi Arabia, says the Canadian Association of Petroleum Producers.

Nine of the world's top oil companies, including Exxon, Chevron and Royal Dutch Shell PLC, have been counting on wringing more Canadian crude from the ground in the coming decades. Combined, Canadian crude accounts for 23% of the firms' proven reserves, according to data from investment bank Peters & Co. -- up from only 5% in 2006.

The potential loss of reserves has broad ramifications for Canada, which depends on the development of its crude stores to support its economy, but like other western countries has been moving to strengthen regulations to address climate change. Canadian Prime Minister Justin Trudeau earlier this month unveiled a national carbon-pricing proposal, sparking an immediate clash between the national government and the province of Alberta.

The Liberal government's proposal to charge a price for carbon emissions compounds the headwinds energy companies already face if they want to mine Canada's oil sands for decades to come.

Amy Myers Jaffe, executive director for Energy and Sustainability at University of California, Davis, said Exxon's warning signals that it doesn't believe oil prices will rise significantly in the near future.

"If lots of companies have to do write downs on their Canadian reserves, it sends a gloomy message about the oil sands," she said.

Longer term, Exxon faces headwinds from regulations aimed at reducing greenhouse gas emissions, measures that are widely expected to fall most heavily on its industry.

Exxon's other major obstacle: U.S. competition. Advanced shale drilling techniques have unleashed a new wave of American oil into world markets. Those drilling and fracking techniques have made smaller American companies the industry's new "swing producers," or those most able to ramp up output quickly.

Credit: By Bradley Olson and Lynn Cook

Subject: Natural gas reserves; Energy industry; Oil reserves

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.1

Publication year: 2016

Publication date: Oct 29, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1833224755

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1833224755?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

InterOil Seeks New Path to Exxon Deal After Yukon Approval Overturned; Phil Mulacek, InterOil shareholder, had objected to transaction

Author: Steele, Anne

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Nov 2016: n/a.

ProQuest document link

Abstract:

InterOil Corp. on Friday said a Yukon appeals court overturned approval for its tie-up with Exxon Mobil Corp. but said it will find a new path to closing the deal.

Links: 360 Link to Full Text

Full text:  

InterOil Corp. on Friday said a Yukon appeals court overturned approval for its tie-up with Exxon Mobil Corp. but said it will find a new path to closing the deal.

Shares of InterOil dropped 5.8% to $45.75 in Friday trading. Exxon shares slipped 0.1% to $83.57.

The Court of Appeal of Yukon upheld the appeal lodged by Phil Mulacek and overturned the Supreme Court of Yukon's approval of the pending transaction with Exxon on Oct. 7. InterOil said it believes the current agreement "represents compelling value for all InterOil shareholders" and InterOil and ExxonMobil are considering the ruling and determining a different path.

Exxon Mobil won a bidding war to buy U.S.-listed InterOil for an estimated $2.5 billion after Oil Search Ltd. dropped out of the process in late July.

The boards of Exxon and InterOil unanimously approved terms of the $45-a-share agreement that has the potential for an additional cash payment. At the time, the deal was expected to close in September, subject to shareholder and regulatory review.

Write to Anne Steele at Anne.Steele@wsj.com

Credit: By Anne Steele

Subject: Court decisions

Location: United States--US

Company / organization: Name: Oil Search Ltd; NAICS: 213111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Nov 4, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1836084378

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Mexican Oil Auction Offers First Major Test of Foreign Firms' Interest; BP, Chevron, Exxon, Petrobas expected to bid on Gulf of Mexico deep water oil fields

Author: Montes, Juan; Whelan, Robbie

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Dec 2016: n/a.

ProQuest document link

Abstract: None available.

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MEXICO CITY--Mexico is preparing to auction rights to its oil-rich deep waters in the Gulf of Mexico, considered the crown jewel of the country's energy industry, which opened to foreign investment only three years ago.

The auction on Monday is seen as the first major test of Mexico's ability to work with the world's top players.

At a time when low oil prices are limiting production elsewhere, the deep-water blocks have caught the attention of energy giants Exxon Mobil Corp., Chevron Corp. and BP PLC, and state-owned firms Statoil ASA of Norway and Petróleo Brasileiro SA of Brazil, among others.

The country's oil regulator hopes to award up to 10 unexplored deep-water blocks and find an operating partner to take a 60% stake in the Trion oil field, located offshore just south of the U.S.-Mexico border, alongside national champion Petróleos Mexicanos, or Pemex.

"In terms of the scale of the projects, this is the biggest one," said Juan Carlos Zepeda, head of the National Hydrocarbons Commission, referring to the deep-water auctions. Government officials expect the cost of developing all 10 of the unexplored blocks to be $34 billion over the next 15 years.

Since an ambitious overhaul opened up Mexico's oil industry to foreign and private investment in 2013, there have been three public tenders; but they offered less-profitable shallow water and inland blocks. While those auctions attracted some global players such as Italy's Eni SpA, the world's largest oil companies largely watched from the sidelines.

This time, expectations in the market are high.

"To have a household name operating in Mexico--that's what they really need in order to consider this a success. It would be an enormous step." said Steven Otillar, a Houston-based partner with the law firm Akin Gump Strauss Hauer & Feld who has worked on deals in Mexico's energy industry for two decades.

Pemex's production has been declining for more than a decade, and the near exhaustion of Mexico's largest oil source, the Cantarell shallow-water field, has forced Mexico to shift its attention to deep-water areas. Authorities estimate that around half of Mexico's prospective oil resources lie in deep waters.

A successful tender would be a boost for a sluggish economy that is facing a gloomy outlook, besieged by low oil prices, steep budget cuts and uncertainty over bilateral trade following Donald Trump's electoral victory in the U.S.

Oil prices have fallen 61% since mid-2014 and Pemex's production has declined 38% since 2004, to 2.1 million barrels a day.

After 75 years of state monopoly, Mexican President Enrique Peña Nieto took the audacious step of opening up the country's energy sector as part of a broader economic overhaul intended to increase competition and investment in key sectors.

Mr. Peña Nieto has made the energy reform the centerpiece of a plan to reinvent heavily indebted Pemex and obtain lucrative royalties from foreign investors to fund government programs. Roughly 18% of Mexico's federal budget comes from oil.

"Production has been in decline for the last several years, so having a way to reverse that decline is key for Mexico's finances," said Pablo Medina, an analyst at energy research firm Wood Mackenzie.

Analysts expect Trion won't produce its first barrels of oil for eight to 10 years. "This is a long-term fix, but whoever joins Pemex in Trion is going to have potentially a lot of upside," Mr. Medina said.

The Trion field was discovered in 2012 and is thought to contain about 485 million barrels of commercial reserves. Senior officials at the Energy Ministry say they would be satisfied if four deep-water blocks plus the partnership with Pemex in Trion are awarded.

State-owned Pemex lacks the technical expertise to build the undersea infrastructure necessary to drill for deep-water crude oil, and joining with an experienced international firm was impossible before the energy reforms. Developing the Trion field, for example, will require an estimated investment of $11 billion.

"We don't have the resources, and we don't have the technology" to produce deep-water oil without partners, said José Antonio González Anaya, Pemex's chief executive.

The level of available reserves in the 10 unexplored blocks is unclear, and oil companies will compete alongside Pemex for exploration and production licenses. Four of the blocks are located near Trion in the Perdido Fold belt, a deep-water region where giants such as Royal Dutch Shell PLC, Chevron and BP are already producing oil on the U.S. side of the Gulf at a rate of about 65,000 barrels a day.

Analysts also will be watching closely to see if any major oil companies make a formal bid for six additional blocks nestled in the southern elbow of the Gulf of Mexico known as the Saline Basin. Much less is known about potential reserves in this area, compared with the active fields in the northern part of the Gulf.

The Saline Basin "is the Great Expectation," said Mr. Zepeda, head of the oil regulator. "It's very risky, but you could find something big."

Write to Juan Montes at juan.montes@wsj.com and Robbie Whelan at robbie.whelan@wsj.com

Related Reading

* Mexico Outlines Plan to Open Oil Fields to Private Companies (Aug. 13, 2014)

* Mexico's Pemex Makes Offshore Crude-Oil Discoveries (Sept. 13)

* Mexico Begins New Round of Oil Auctions With Shallow Water Blocks (July 19)

* Petróleos Mexicanos Posts $4.4 Billion Second-Quarter Loss (July 28)

Credit: By Juan Montes and Robbie Whelan

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 2, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845297475

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845297475?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon CEO Now a Contender for Donald Trump's Secretary of State; President-elect widens circle of candidates for top diplomatic job and will interview more prospects

Author: Lee, Carol E; Nicholas, Peter

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Dec 2016: n/a.

ProQuest document link

Abstract:

Other candidates for the job are former New York City Mayor Rudy Giuliani, one of Mr. Trump's most loyal campaign supporters; U.S. Sen. Bob Corker (R., Tenn.), the Foreign Relations Committee chairman, who also met with Mr. Trump in New York on Tuesday; and retired Gen. David Petraeus, director of the Central Intelligence Agency in the Obama administration.

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President-elect Donald Trump is widening the circle of candidates for secretary of state and will interview more prospects this week, transition officials said, a sign that after multiple meetings with high-profile hopefuls he still isn't sold on whom he wants as the nation's top diplomat.

Though Mr. Trump's transition team said last week that the search had narrowed to four finalists , new candidates have emerged, including Rex Tillerson, chairman and chief executive of Exxon Mobil Corp., one transition adviser said.

Mr. Tillerson is scheduled to meet with Mr. Trump for an interview this week. Alan Jeffers, an Exxon spokesman, declined to comment.

Vice President-elect Mike Pence, appearing Sunday on NBC, said the list of secretary of state candidates "might grow a little bit."

On Sunday evening, Mr. Trump's transition officials said another candidate for both secretary of state and energy secretary is Sen. Joe Manchin (D., W.Va.). The conservative Democrat would add a bipartisan dimension to the Trump cabinet if chosen.

Mr. Manchin has experience in both realms, serving on the Senate's Energy and Natural Resources Committee and the Armed Services Committee. His office didn't respond to a request for comment.

And U.S. Rep. Dana Rohrabacher (R., Calif.) said in an interview Sunday he is talking to Trump transition officials about the secretary of state job. He said he has pitched to them an arrangement in which he would serve in the top job and a deputy would be John Bolton, a former ambassador to the United Nations.

Mr. Bolton--who also is in the running for the secretary of state post--held a private meeting with the president-elect Friday at Trump Tower.

Kellyanne Conway, a senior Trump adviser, told reporters Sunday: "It is true that he's broadened the search...He's very fortunate to have interest among serious men and women who, all of whom need to understand that their first responsibility as secretary of state would be to implement and adhere to the president-elect's America First foreign policy, if you will, his view of the world."

A final decision could come by week's end, the transition adviser said.

Secretary of state is the most prominent missing piece in a national security team that is quickly taking shape. At a rally in Cincinnati last week, Mr. Trump announced he selected retired Gen. James Mattis to head the Pentagon as defense secretary. He has tapped another retired general, Michael Flynn, to serve as his national security adviser.

Normally an opaque process, the hunt for the next secretary of state has played out in an unusually public fashion.

Another top candidate is 2012 Republican presidential nominee Mitt Romney, who clashed bitterly with Mr. Trump during the GOP primaries this year. Last Tuesday, Mr. Trump had dinner with Mr. Romney in Manhattan.

Setting aside the campaign hostilities and perhaps trying to make amends with Mr. Trump's supporters, Mr. Romney told reporters afterward that he was "impressed" with the transition effort.

Other candidates for the job are former New York City Mayor Rudy Giuliani, one of Mr. Trump's most loyal campaign supporters; U.S. Sen. Bob Corker (R., Tenn.), the Foreign Relations Committee chairman, who also met with Mr. Trump in New York on Tuesday; and retired Gen. David Petraeus, director of the Central Intelligence Agency in the Obama administration.

Gen. Petraeus pleaded guilty in 2015 to a misdemeanor charge of mishandling classified material in a case involving his biographer, with whom he said he had an extramarital affair. He addressed his legal troubles in an appearance Sunday on ABC, saying, "I made a mistake. I have again acknowledged it. Folks will have to factor that in and determine whether that is indeed disqualifying or not."

One of the questions Mr. Trump faces is whether he wants a trifecta of generals as his core national security team. That would be the upshot if he picks Mr. Petraeus.

Coming to the presidency with no foreign policy or government experience, Mr. Trump could rely more heavily on his national security team than his predecessors.

So far he has chosen to largely freestyle his engagement with foreign leaders, rather than rely on the State Department's guidance for such conversations.

Mr. Trump sent shock waves through the diplomatic community Friday when he spoke with President Tsai Ing-wen of Taiwan, the first conversation between a U.S. president-elect, or president, and the leader of Taiwan since 1979. The conversation ran against Beijing's efforts to block formal U.S. relations with the island off China's coast, which it has long considered a Chinese territory and not a sovereign nation.

Choosing a secretary of state with scant foreign policy background, such as Exxon's Mr. Tillerson, could further unnerve government officials serving in an institution that functions on strict protocols.

Mr. Trump also faces a decision on whether he wants a more hawkish foreign policy or one favoring diplomacy over military engagement.

During the campaign, he signaled that he wants a military posture that is less interventionist, eschewing "nation-building" and "regime-change." Yet he has vowed to intensify military action against Islamic State.

"The balance of personalities in the [White House] Situation Room is really important. It's one of the few places where all the parts of government come together to shape foreign policy and presidential decision making," said Phil Carter, director of the Military, Veterans and Society Program at the Center for a New American Security, a bipartisan think tank.

"They have to bring their personalities and their judgment to the table," Mr. Carter said. "Who you have in that room and in that decision process can have a big impact."

Mr. Tillerson, 64 years old, grew up in Texas and joined Exxon in 1975. He leads a company with operations in more than 50 countries, from Canada to Papua New Guinea, that often exerts itself abroad with the sweep of a sovereign nation. He is slated to retire next year and Exxon has identified Darren Woods as a successor.

As Exxon's CEO since 2006, Mr. Tillerson could leverage existing relationships with numerous world leaders, including Russia's Vladimir Putin, with whom he has had dealings for more than a decade .

Mr. Tillerson's close ties to the company, including tens of millions of dollars of Exxon shares that will become available to him in the coming decade, could complicate his efforts to lift sanctions or intervene in trade disputes where Exxon has a financial interest. It would be almost impossible for him to recuse himself from working with all the countries in which Exxon operates or markets products.

Mr. Tillerson's corporate pedigree would make him an unconventional choice, foreign policy analysts said. Jon Alterman, a Middle East expert at the nonpartisan Center for Strategic and International Studies, noted that former Secretary of State John Foster Dulles was a lawyer at a top New York City firm, but not a CEO, and that George Shultz was president of Bechtel Corp., but also served in government.

"Both are far, far, far smaller companies than Exxon Mobil," Mr. Alterman said. "I can't think of a CEO with no government experience becoming secretary of state."

As head of a company with a massive global footprint, Mr. Tillerson, though, is no stranger to foreign leaders.

As Exxon's chief executive, he has spoken against sanctions on Russia, where the company in 2012 signed a $3.2 billion deal that Mr. Putin said could eventually reach $500 billion in investments.

"We always encourage the people who are making those decisions to consider the very broad collateral damage of who are they really harming with sanctions," Mr. Tillerson said at the company's annual meeting in May 2014.

Mr. Tillerson has some of the closest ties among U.S. CEOs to Mr. Putin and Russia, with his work there dating back to when Mr. Putin rose to power after Boris Yeltsin's resignation. The 2012 deal gave Exxon access to prized arctic resources. Later that year, the Kremlin bestowed the country's Order of Friendship on the American businessman.

Mr. Tillerson supported a Trump rival in the Republican primaries: Former Florida Gov. Jeb Bush. He gave the maximum $2,700 to the Bush campaign, and another $5,000 to the Right to Rise, the super PAC that backed Mr. Bush. He didn't make a contribution to Mr. Trump's campaign, according to the Center for Responsive Politics, which tracks political giving.

Bradley Olson and James V. Grimaldi contributed to this article.

Write to Carol E. Lee at carol.lee@wsj.com and Peter Nicholas at peter.nicholas@wsj.com

Credit: By Carol E. Lee and Peter Nicholas

Subject: Presidents; Foreign policy; International relations; Political campaigns; National security

Location: United States--US

People: Pence, Mike Mattis, James Rohrabacher, Dana

Company / organization: Name: Department of Defense; NAICS: 928110; Name: United Nations--UN; NAICS: 928120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 4, 2016

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845549112

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845549112?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Exxon CEO Now a Contender for Donald Trump's Secretary of State; President-elect widens circle of candidates for top diplomatic job and will interview more prospects

Author: Lee, Carol E; Nicholas, Peter

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]05 Dec 2016: n/a.

ProQuest document link

Abstract:

Other candidates for the job are former New York City Mayor Rudy Giuliani, one of Mr. Trump's most loyal campaign supporters; U.S. Sen. Bob Corker (R., Tenn.), the Foreign Relations Committee chairman, who also met with Mr. Trump in New York on Tuesday; and retired Gen. David Petraeus, director of the Central Intelligence Agency in the Obama administration.

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Full text:  

President-elect Donald Trump is widening the circle of candidates for secretary of state and will interview more prospects this week, transition officials said, a sign that after multiple meetings with high-profile hopefuls he still isn't sold on whom he wants as the nation's top diplomat.

Though Mr. Trump's transition team said last week that the search had narrowed to four finalists , new candidates have emerged, including Rex Tillerson, chairman and chief executive of Exxon Mobil Corp., one transition adviser said.

Mr. Tillerson is scheduled to meet with Mr. Trump for an interview this week. Alan Jeffers, an Exxon spokesman, declined to comment.

Vice President-elect Mike Pence, appearing Sunday on NBC, said the list of secretary of state candidates "might grow a little bit."

On Sunday evening, Mr. Trump's transition officials said another candidate for both secretary of state and energy secretary is Sen. Joe Manchin (D., W.Va.). The conservative Democrat would add a bipartisan dimension to the Trump cabinet if chosen.

Mr. Manchin has experience in both realms, serving on the Senate's Energy and Natural Resources Committee and the Armed Services Committee. His office didn't respond to a request for comment.

And U.S. Rep. Dana Rohrabacher (R., Calif.) said in an interview Sunday he is talking to Trump transition officials about the secretary of state job. He said he has pitched to them an arrangement in which he would serve in the top job and a deputy would be John Bolton, a former ambassador to the United Nations.

Mr. Bolton--who also is in the running for the secretary of state post--held a private meeting with the president-elect Friday at Trump Tower.

Kellyanne Conway, a senior Trump adviser, told reporters Sunday: "It is true that he's broadened the search...He's very fortunate to have interest among serious men and women who, all of whom need to understand that their first responsibility as secretary of state would be to implement and adhere to the president-elect's America First foreign policy, if you will, his view of the world."

A final decision could come by week's end, the transition adviser said.

Secretary of state is the most prominent missing piece in a national security team that is quickly taking shape. At a rally in Cincinnati last week, Mr. Trump announced he selected retired Gen. James Mattis to head the Pentagon as defense secretary. He has tapped another retired general, Michael Flynn, to serve as his national security adviser.

Normally an opaque process, the hunt for the next secretary of state has played out in an unusually public fashion.

Another top candidate is 2012 Republican presidential nominee Mitt Romney, who clashed bitterly with Mr. Trump during the GOP primaries this year. Last Tuesday, Mr. Trump had dinner with Mr. Romney in Manhattan.

Setting aside the campaign hostilities and perhaps trying to make amends with Mr. Trump's supporters, Mr. Romney told reporters afterward that he was "impressed" with the transition effort.

Other candidates for the job are former New York City Mayor Rudy Giuliani, one of Mr. Trump's most loyal campaign supporters; U.S. Sen. Bob Corker (R., Tenn.), the Foreign Relations Committee chairman, who also met with Mr. Trump in New York on Tuesday; and retired Gen. David Petraeus, director of the Central Intelligence Agency in the Obama administration.

Gen. Petraeus pleaded guilty in 2015 to a misdemeanor charge of mishandling classified material in a case involving his biographer, with whom he said he had an extramarital affair. He addressed his legal troubles in an appearance Sunday on ABC, saying, "I made a mistake. I have again acknowledged it. Folks will have to factor that in and determine whether that is indeed disqualifying or not."

One of the questions Mr. Trump faces is whether he wants a trifecta of generals as his core national security team. That would be the upshot if he picks Mr. Petraeus.

Coming to the presidency with no foreign policy or government experience, Mr. Trump could rely more heavily on his national security team than his predecessors.

So far he has chosen to largely freestyle his engagement with foreign leaders, rather than rely on the State Department's guidance for such conversations.

Mr. Trump sent shock waves through the diplomatic community Friday when he spoke with President Tsai Ing-wen of Taiwan, the first conversation between a U.S. president-elect, or president, and the leader of Taiwan since 1979. The conversation ran against Beijing's efforts to block formal U.S. relations with the island off China's coast, which it has long considered a Chinese territory and not a sovereign nation.

Choosing a secretary of state with scant foreign policy background, such as Exxon's Mr. Tillerson, could further unnerve government officials serving in an institution that functions on strict protocols.

Mr. Trump also faces a decision on whether he wants a more hawkish foreign policy or one favoring diplomacy over military engagement.

During the campaign, he signaled that he wants a military posture that is less interventionist, eschewing "nation-building" and "regime-change." Yet he has vowed to intensify military action against Islamic State.

"The balance of personalities in the [White House] Situation Room is really important. It's one of the few places where all the parts of government come together to shape foreign policy and presidential decision making," said Phil Carter, director of the Military, Veterans and Society Program at the Center for a New American Security, a bipartisan think tank.

"They have to bring their personalities and their judgment to the table," Mr. Carter said. "Who you have in that room and in that decision process can have a big impact."

Mr. Tillerson, 64 years old, grew up in Texas and joined Exxon in 1975. He leads a company with operations in more than 50 countries, from Canada to Papua New Guinea, that often exerts itself abroad with the sweep of a sovereign nation. He is slated to retire next year and Exxon has identified Darren Woods as a successor.

As Exxon's CEO since 2006, Mr. Tillerson could leverage existing relationships with numerous world leaders, including Russia's Vladimir Putin, with whom he has had dealings for more than a decade .

Mr. Tillerson's close ties to the company, including tens of millions of dollars of Exxon shares that will become available to him in the coming decade, could complicate his efforts to lift sanctions or intervene in trade disputes where Exxon has a financial interest. It would be almost impossible for him to recuse himself from working with all the countries in which Exxon operates or markets products.

Mr. Tillerson's corporate pedigree would make him an unconventional choice, foreign policy analysts said. Jon Alterman, a Middle East expert at the nonpartisan Center for Strategic and International Studies, noted that former Secretary of State John Foster Dulles was a lawyer at a top New York City firm, but not a CEO, and that George Shultz was president of Bechtel Corp., but also served in government.

"Both are far, far, far smaller companies than Exxon Mobil," Mr. Alterman said. "I can't think of a CEO with no government experience becoming secretary of state."

As head of a company with a massive global footprint, Mr. Tillerson, though, is no stranger to foreign leaders.

As Exxon's chief executive, he has spoken against sanctions on Russia, where the company in 2012 signed a $3.2 billion deal that Mr. Putin said could eventually reach $500 billion in investments.

"We always encourage the people who are making those decisions to consider the very broad collateral damage of who are they really harming with sanctions," Mr. Tillerson said at the company's annual meeting in May 2014.

Mr. Tillerson has some of the closest ties among U.S. CEOs to Mr. Putin and Russia, with his work there dating back to when Mr. Putin rose to power after Boris Yeltsin's resignation. The 2012 deal gave Exxon access to prized arctic resources. Later that year, the Kremlin bestowed the country's Order of Friendship on the American businessman.

Mr. Tillerson supported a Trump rival in the Republican primaries: Former Florida Gov. Jeb Bush. He gave the maximum $2,700 to the Bush campaign, and another $5,000 to the Right to Rise, the super PAC that backed Mr. Bush. He didn't make a contribution to Mr. Trump's campaign, according to the Center for Responsive Politics, which tracks political giving.

Bradley Olson and James V. Grimaldi contributed to this article.

Write to Carol E. Lee at carol.lee@wsj.com and Peter Nicholas at peter.nicholas@wsj.com

Credit: By Carol E. Lee and Peter Nicholas

Subject: Presidents; Foreign policy; International relations; Political campaigns; National security

Location: United States--US

People: Pence, Mike Mattis, James Rohrabacher, Dana

Company / organization: Name: Department of Defense; NAICS: 928110; Name: United Nations--UN; NAICS: 928120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 5, 2016

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1845871254

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1845871254?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Rex Tillerson, a Candidate for Secretary of State, Has Ties to Vladimir Putin; Exxon Mobil CEO could redefine U.S. interests abroad

Author: Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Dec 2016: n/a.

ProQuest document link

Abstract:

(Dec. 6) Exxon Mobil Corp. Chief Executive Rex Tillerson, who was meeting with Donald Trump on Tuesday to discuss becoming his secretary of state, is a seasoned deal-maker whose close ties to Vladimir Putin and other world leaders could redefine American interests abroad.

Links: 360 Link to Full Text

Full text:  

Corrections & Amplifications:

A headline on an earlier version of this article misspelled Russian President Vladimir Putin's first name as Vladmir. (Dec. 6)

Exxon Mobil Corp. Chief Executive Rex Tillerson, who was meeting with Donald Trump on Tuesday to discuss becoming his secretary of state, is a seasoned deal-maker whose close ties to Vladimir Putin and other world leaders could redefine American interests abroad.

His emergence as a candidate to be the nation's top diplomat despite having no government experience surprised senior Exxon officials--including Mr. Tillerson, according to people familiar with the matter.

Friends of the 64-year-old Texas oilman, whom they describe as a staunch conservative, said they expect he would consider the job due to his sense of patriotic duty and because he is set to retire from the company next year. The meeting was taking place Tuesday morning at Trump Tower in New York, according to a transition official.

His appointment would introduce the potential for sticky conflicts of interest because of his financial stake in Exxon, which explores for oil and gas on six of the world's seven continents and has operations in more than 50 countries. He owns Exxon shares worth $151 million, according a recent securities filing.

Alan Jeffers, an Exxon spokesman, said Mr. Tillerson wouldn't comment on his candidacy.

It is unclear how Mr. Tillerson, a strong supporter of free trade, would fit ideologically with Mr. Trump, who has spoken out repeatedly against trade deals. Little is known of the foreign-policy views held by Mr. Tillerson, who as secretary of state would be expected to handle any changes to the 2015 nuclear agreement with Iran, sanctions on Russia and disputes with China, the subject of repeated barbs from Mr. Trump on the campaign trail.

People familiar with the transition also place Mr. Tillerson, a late entry in the president-elect's wide-ranging search for a secretary of state, behind the three top contenders-- Mitt Romney, Rudy Giuliani and David Petraeus .

Friends and associates said few U.S. citizens are closer to Mr. Putin than Mr. Tillerson, who has known Mr. Putin since he represented Exxon's interests in Russia during the regime of Boris Yeltsin.

"He has had more interactive time with Vladimir Putin than probably any other American with the exception of Henry Kissinger," said John Hamre, a former deputy defense secretary during the Clinton administration and president of the Center for Strategic and International Studies, a Washington think tank where Mr. Tillerson is a board member.

In 2011, Mr. Tillerson struck a deal giving Exxon access to prized Arctic resources in Russia as well as allowing Russia's state oil company, OAO Rosneft, to invest in Exxon concessions all over the world. The following year, the Kremlin bestowed the country's Order of Friendship decoration on Mr. Tillerson.

The deal would have been transformative for Exxon. Mr. Putin at the time called it one of the most important involving Russia and the U.S., forecasting that the partnership could eventually spend $500 billion. But it was subsequently blocked by sanctions on Russia that the U.S. and its allies imposed two years ago after the country's invasion of Crimea and conflicts with Ukraine.

Mr. Tillerson spoke against the sanctions at the company's annual meeting in 2014. "We always encourage the people who are making those decisions to consider the very broad collateral damage of who are they really harming with sanctions," he said.

One of the first issues Mr. Tillerson would have to resolve as secretary of state would be his holdings of Exxon shares, many of which aren't scheduled to vest for almost a decade. The value of those shares could go up if the sanctions on Russia were lifted.

The shares would likely have to be sold under State Department ethics rules, Chase Untermeyer, a former U.S. Ambassador to Qatar, said in an interview.

"He could not erase his strong relationship with a particular country," Mr. Untermeyer said. "The best protection from a conflict of interest is transparency."

Mr. Trump has also faced repeated questions about how he will untangle himself from his real-estate empire to avoid potential conflicts as president. He has yet to clarify what steps he would take, saying on Twitter shortly after he was elected that he can't have a conflict of interest as president. On Nov. 30, he tweeted he would soon "leave his great business in total," promising to disclose details at a Dec. 15 press conference.

Mr. Tillerson has over the years shown ideological flexibility on certain topics when he deems it strategically important to the companies or institutions he has led.

He helped shift Exxon's response to climate change when he took over as CEO in 2006. He embraced a carbon tax as the best potential policy solution and has said climate change is a global problem that warrants action. That was a break from his predecessor, Lee Raymond.

Still, Mr. Tillerson is a polarizing figure among Democrats and environmental activists. They have accused Exxon of sowing doubt about the impacts of climate change during Mr. Raymond's tenure and say Mr. Tillerson hasn't done enough to disclose the future impact of climate-change regulations on the company's ability to get oil out of the ground.

"This is certainly a good way to make clear exactly who'll be running the government in a Trump administration--just cut out the middleman and hand it directly to the fossil-fuel industry," said Bill McKibben, the environmental activist and founder of 350.org.

Exxon has disputed the criticism and accused activists and Democratic attorneys general of conspiring against the company.

The son of a local Boy Scouts administrator, Mr. Tillerson was born in Wichita Falls, Texas. He attended the University of Texas, where he studied civil engineering, was a drummer in the Longhorn band and participated in a community service-oriented fraternity.

He joined Exxon in 1975 and has spent his entire career at the company.

For most of his adult life, he has also been closely involved with the Boy Scouts of America, even occasionally incorporating the Scout Law and Scout Oath into his speeches.

Mr. Tillerson played an instrumental role in leading the organization to change its policy to allow gay youth to participate in 2013, Mr. Hamre said. Former Defense Secretary Robert Gates subsequently moved to lift the organization's ban on gay adult leaders as Boy Scouts president in 2015.

"Most of the reason that organizations fail at change is pretty simple: People don't understand why," Mr. Tillerson said in a speech after the 2013 decision, urging leaders to communicate about the policy to help make it successful. "We're going to serve kids and make the leaders of tomorrow."

Peter Nicholas, Gordon Lubold and Jim Oberman contributed to this article.

Write to Bradley Olson at Bradley.Olson@wsj.com

Related

* Trump Moves Sights to Boeing

Credit: By Bradley Olson

Subject: Presidents; Sanctions; Political campaigns

Location: Texas United States--US Russia

People: Petraeus, David H Giuliani, Rudolph W Romney, W Mitt Yeltsin, Boris Putin, Vladimir Kissinger, Henry A

Company / organization: Name: OAO Rosneft; NAICS: 324110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 6, 2016

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1846021358

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1846021358?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon's Rex Tillerson Is Top Candidate for Secretary of State; CEO with ties to Russia's Vladimir Putin would bring an executive's experience to the diplomatic role, a transition official said

Author: Nicholas, Peter; Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Dec 2016: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. Chief Executive Rex Tillerson has emerged as the leading candidate to become President-elect Donald Trump's pick for secretary of state, according to two transition officials, marking the latest twist in a multi-week search for a top diplomat.

Links: 360 Link to Full Text

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Exxon Mobil Corp. Chief Executive Rex Tillerson has emerged as the leading candidate to become President-elect Donald Trump's pick for secretary of state, according to two transition officials, marking the latest twist in a multi-week search for a top diplomat.

Mr. Tillerson moved ahead of other candidates, including 2012 Republican presidential nominee Mitt Romney, who have had multiple conversations with Mr. Trump about the job. Mr. Tillerson is viewed by some of Mr. Trump's advisers as a mold-breaking pick who would bring an executive's experience to the diplomatic role, according to a person involved in the process.

Messrs. Trump and Tillerson met on Tuesday and are expected to speak again over the weekend, the person said. Mr. Trump has said he would like to make a formal announcement about his State Department pick next week.

Mr. Trump said in a statement on Friday that former New York Mayor Rudy Giuliani had taken himself out of the running for the diplomatic job and other administration posts late last month.

"Before I joined the campaign I was very involved and fulfilled by my work with my law firm and consulting firm and I will continue that work with even more enthusiasm," Mr. Giuliani said in a statement on Friday.

An Exxon spokesman declined to comment.

If Mr. Trump selects Mr. Tillerson, it would add a seasoned business executive to a team that already includes three retired generals. As Exxon's CEO since 2006, Mr. Tillerson, 64 years old, could leverage existing relationships with numerous world leaders.

Among those considered for the post, Mr. Tillerson has perhaps the closest ties to Russian President Vladimir Putin, having negotiated a 2012 energy partnership deal with Russia that Mr. Putin said could eventually be worth as much as $500 billion. In 2012, the Kremlin bestowed the country's Order of Friendship decoration on Mr. Tillerson.

This pre-existing relationship with Mr. Putin complements Mr. Trump's push to improve ties between the U.S. and Russia. A number of Republicans have urged Mr. Trump to be wary of working closely with Russia, warning that it is trying to expand its influence in a way that runs counter to U.S. interests in places such as Ukraine and Syria.

Exxon has a large global presence, but this could introduce sticky conflicts of interest if Mr. Tillerson is selected. The company explores for oil and gas on six of the world's continents and has operations in more than 50 countries.

Mr. Tillerson, who is slated to retire next year, has a pension worth tens of millions of dollars, a value that could potentially be affected by State Department activities. For example, he could benefit from such potential department actions as the lifting of sanctions on Russia.

The Obama administration and European allies have imposed several rounds of economic sanctions against Russia following its annexation of Crimea in 2014. The Obama administration also has accused the Kremlin of backing militants in eastern Ukraine even after the annexation of Crimea.

As Exxon's CEO, Mr. Tillerson has spoken against sanctions on Russia. Mr. Tillerson's work there dates to when Mr. Putin rose to power after Boris Yeltsin's resignation.

"We always encourage the people who are making those decisions to consider the very broad collateral damage of who are they really harming with sanctions," he said at the company's annual meeting in May 2014.

Mr. Tillerson grew up in Texas and in 1975 joined Exxon, where he has spent his entire career. He has long been closely affiliated with Republican politicians and the Boy Scouts of America, but he has never worked in government.

While unusual, the choice of a corporate leader as secretary of state wouldn't be unprecedented. George Shultz was the executive vice president of engineering giant Bechtel before he became secretary of state under President Ronald Reagan, though Mr. Shultz had been in government in a prior administration.

Meanwhile, Mr. Trump is expected to tap Rep. Cathy McMorris Rodgers (R., Wash.) to lead the Interior Department, according to a person familiar with the matter.

If confirmed by the Senate, Ms. McMorris Rodgers would lead Mr. Trump's efforts to open up federal lands and waters to fossil-fuel development and reverse environmental policies the Obama administration has pursued.

Since her first election to Congress in 2004, Ms. McMorris Rodgers has risen in the ranks and is the now fourth-highest-ranking Republican in the House and the highest-ranking GOP woman in Congress. She also serves on the Energy and Commerce Committee.

Damian Paletta and Amy Harder contributed to this article.

Write to Peter Nicholas at peter.nicholas@wsj.com and Bradley Olson at Bradley.Olson@wsj.com

Credit: By Peter Nicholas and Bradley Olson

Subject: Sanctions; Political campaigns; Presidents

Location: Russia

People: Giuliani, Rudolph W Romney, W Mitt

Company / organization: Name: Central Intelligence Agency--CIA; NAICS: 928110, 928120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 9, 2016

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1847513313

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847513313?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Exxon's Rex Tillerson Is Top Candidate for Secretary of State; CEO with ties to Russia would bring executive's experience to the diplomatic role, transition official says

Author: Nicholas, Peter; Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Dec 2016: n/a.

ProQuest document link

Abstract:

Since Mr. Trump began vetting candidates for secretary of state, Mr. Tillerson's stock has climbed steadily.

Links: 360 Link to Full Text

Full text:  

President-elect Donald Trump is expected to nominate Exxon Mobil Corp. Chief Executive Rex Tillerson to be secretary of state, a transition official said Saturday, a selection that would reach outside the traditional foreign policy establishment to elevate a global business deal-maker.

Mr. Trump hasn't yet made a final decision, the official said, but the president-elect heaped praise on Mr. Tillerson in an interview released Saturday.

"He's more than a business executive; he's a world-class player,'' Mr. Trump told Fox News in the interview, to be broadcast Sunday. "He's in charge of I guess the largest company in the world."

Mr. Trump called it "a great advantage" that Mr. Tillerson already knows "many of the players," noting that he does "massive deals in Russia."

Those deals would be certain to come under scrutiny in confirmation hearings before the Senate. A number of Republicans have urged Mr. Trump to be wary of Russia, warning that it is trying to expand its influence in ways that run counter to U.S. interests in places such as Ukraine and Syria.

The nomination would also put Mr. Trump's intentions toward Russia in the spotlight just as controversy is intensifying over reports that the Central Intelligence Agency has concluded that a Russian-led hacking effort of U.S. email accounts was intended to boost Mr. Trump's election chances.

Mr. Tillerson, 64 years old, met privately with Mr. Trump on Saturday, four days after their first meeting.

Among those considered for the post, Mr. Tillerson has perhaps the closest ties to Russian President Vladimir Putin, having negotiated a 2011 energy partnership deal with Russia that Mr. Putin said could eventually be worth as much as $500 billion. In 2012, the Kremlin bestowed the country's Order of Friendship decoration on Mr. Tillerson.

This pre-existing relationship with Mr. Putin complements Mr. Trump's push to improve U.S.-Russia ties.

Since Mr. Trump began vetting candidates for secretary of state, Mr. Tillerson's stock has climbed steadily. He moved ahead of better-known hopefuls with established political credentials--including 2012 Republican presidential nominee Mitt Romney --who had multiple conversations with Mr. Trump about the job. Mr. Tillerson is viewed by some of Mr. Trump's advisers as a mold-breaking pick who would bring an executive's experience to the diplomatic role, said a person involved in the process.

Tapping Mr. Tillerson for the job would be a "Trumpian" move, the transition official said.

Mr. Trump is expected to make a formal announcement about his State Department pick in the coming days.

An Exxon spokesman declined to comment.

Mr. Trump said in a statement on Friday that former New York Mayor Rudy Giuliani had taken himself out of the running for the diplomatic job and other administration posts late last month.

With Mr. Trump's decision not yet final, other candidates who remain in the running, apart from Mr. Romney, are former Central Intelligence Agency director David Petraeus, former U.S. Ambassador to the United Nations John Bolton, and U.S. Sen. Bob Corker (R., Tenn.), people familiar with the matter said.

If Mr. Trump selects Mr. Tillerson, it would add a seasoned business executive to a team that already includes three retired generals. As Exxon's CEO since 2006, Mr. Tillerson could leverage existing relationships with numerous world leaders.

Exxon has a large global presence, and this could introduce sticky conflicts of interest if Mr. Tillerson is selected. The company explores for oil and gas on six of the world's continents and has operations in more than 50 countries.

Mr. Tillerson, who is slated to retire next year, has retirement funds worth tens of millions of dollars, a value that could potentially be affected by State Department activities. For example, he could benefit from such potential department actions as the lifting of sanctions on Russia.

Democrats signaled that they would raise such issues in a confirmation hearing. Sen. Bob Menendez (D., N.J.), a Foreign Relations Committee member, said Mr. Tillerson would bring a number of conflicts of interest to the job and called his expected nomination "alarming and absurd," offering Russia "a willing accomplice in the president's cabinet guiding our nation's foreign policy."

The Obama administration and European allies have imposed several rounds of economic sanctions against Russia following its annexation of Crimea in 2014. The Obama administration also has accused the Kremlin of backing militants in eastern Ukraine even after the annexation of Crimea.

As Exxon's CEO, Mr. Tillerson has spoken against sanctions on Russia. Mr. Tillerson's work there dates to when Mr. Putin rose to power after Boris Yeltsin's resignation.

"We always encourage the people who are making those decisions to consider the very broad collateral damage of who are they really harming with sanctions," he said at the company's annual meeting in May 2014.

Mr. Tillerson grew up in Texas and in 1975 joined Exxon, where he has spent his entire career. He has long been closely affiliated with Republican politicians and the Boy Scouts of America, but he has never worked in government.

While unusual, the choice of a corporate leader as secretary of state wouldn't be unprecedented. George Shultz was the executive vice president of engineering giant Bechtel before he became secretary of state under President Ronald Reagan, though Mr. Shultz had been in government in a prior administration.

Mr. Trump also is expected to tap Rep. Cathy McMorris Rodgers (R., Wash.) to lead the Interior Department, according to a person familiar with the matter.

If confirmed by the Senate, she would lead Mr. Trump's efforts to open up federal lands and waters to fossil-fuel development and reverse environmental policies the Obama administration has pursued.

Since her first election to Congress in 2004, Ms. McMorris Rodgers has risen in the ranks and is now the fourth-highest-ranking Republican in the House and the highest-ranking GOP woman in Congress. She also serves on the Energy and Commerce Committee.

Damian Paletta, Amy Harder and Mara Gay contributed to this article.

Write to Peter Nicholas at peter.nicholas@wsj.com and Bradley Olson at Bradley.Olson@wsj.com

Credit: By Peter Nicholas and Bradley Olson

Subject: Political appointments; Presidents; Nominations; Conflicts of interest; Diplomatic & consular services; Foreign policy; International relations

Location: United States--US Russia

People: Giuliani, Rudolph W Romney, W Mitt

Company / organization: Name: Central Intelligence Agency--CIA; NAICS: 928110, 928120; Name: Fox News Channel; NAICS: 515120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 11, 2016

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1847586053

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847586053?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Donald Trump Says Exxon's Rex Tillerson Would Be 'World-Class Player' as Secretary of State; Likely pick for secretary of state knows world leaders and 'does massive deals in Russia,' Trump says on Fox

Author: McKinnon, John D; Morath, Eric

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Dec 2016: n/a.

ProQuest document link

Abstract:

Donald Trump on Sunday defended Exxon Mobil Corp. Chief Executive Rex Tillerson--expected to be the president-elect's choice as secretary of state--as a "world-class player" who knows international leaders well. Since Mr. Trump began vetting candidates for secretary of state, Mr. Tillerson's stock has climbed steadily.

Links: 360 Link to Full Text

Full text:  

Donald Trump on Sunday defended Exxon Mobil Corp. Chief Executive Rex Tillerson--expected to be the president-elect's choice as secretary of state--as a "world-class player" who knows international leaders well.

"He's more than a business executive,'' Mr. Trump told Fox News in an interview broadcast Sunday. "He's in charge of, I guess, the largest company in the world."

Mr. Trump called it "a great advantage" that Mr. Tillerson already knows "many of the players," noting that he does "massive deals in Russia."

Those deals would be certain to come under scrutiny in Senate confirmation hearings. A number of Republicans have urged Mr. Trump to be wary of Russia, warning that it is trying to expand its influence in ways that run counter to U.S. interests in places such as Ukraine and Syria.

Sen. Bob Menendez (D., N.J.), a senior Democrat on the Senate Foreign Relations Committee, said the selection of Mr. Tillerson would be "guaranteeing Russia has a willing accomplice in the president's cabinet guiding our nation's foreign policy."

The nomination would also put Mr. Trump's intentions toward Russia in the spotlight just as controversy is intensifying over reports that the CIA has concluded that a Russian-led hacking effort of U.S. email accounts was intended to boost Mr. Trump's election chances.

In a separate Fox News interview, Trump transition team official Kellyanne Conway said Mr. Tillerson is "not a typical politician or even a typical diplomat," but a seasoned executive accustomed to negotiating globally and managing a world-wide workforce. "This is the Trump effect," she said, adding Mr. Trump wouldn't fit into "conventional boxes."

Mr. Tillerson, 64 years old, met privately with Mr. Trump Saturday, four days after their first meeting.

Among those considered for the post, Mr. Tillerson has perhaps the closest ties to Russian President Vladimir Putin, having negotiated a 2011 energy partnership deal with Russia that Mr. Putin said could eventually be worth as much as $500 billion. In 2012, the Kremlin bestowed the country's Order of Friendship decoration on Mr. Tillerson.

Mr. Trump is expected to make a formal announcement about his State Department pick in the coming days. An Exxon spokesman declined to comment.

Mr. Trump in the Fox News interview also promised quick decisions on two proposed oil pipelines, the Dakota Access and Keystone lines. He said he is studying next steps on the Paris climate agreement, which he worries could give an advantage to China and other developing economies.

"I do say this: I don't want that agreement to put us at a competitive disadvantage with other countries," he said. "And as you know, there are different times and different time limits on that agreement. I don't want that to give China, or other countries signing agreements an advantage over us."

Mr. Trump also defended his sometimes pointed recent attacks on companies, such as Boeing Co., saying, "I want us to make good deals for this country." He cited the high expected costs for new Air Force One aircraft.

"I don't need a $4.2 billion airplane to fly around in, OK?" he said.

Since Mr. Trump began vetting candidates for secretary of state, Mr. Tillerson's stock has climbed steadily. He moved ahead of better-known hopefuls with established political credentials--including 2012 Republican presidential nominee Mitt Romney--who had multiple conversations with Mr. Trump about the job. Mr. Tillerson is viewed by some of Mr. Trump's advisers as a mold-breaking pick who would bring an executive's experience to the diplomatic role, said a person involved in the process.

Mr. Trump said in a statement on Friday that former New York Mayor Rudy Giuliani had taken himself out of the running for the diplomatic job and other administration posts late last month.

With Mr. Trump's decision not yet final, other candidates who remain in the running, apart from Mr. Romney, are former CIA director David Petraeus, former U.S. Ambassador to the United Nations John Bolton, and U.S. Sen. Bob Corker (R., Tenn.), people familiar with the matter said.

If Mr. Trump selects Mr. Tillerson, it would add a seasoned business executive to a team that already includes three retired generals. As Exxon's CEO since 2006, Mr. Tillerson could leverage existing relationships with numerous world leaders.

Exxon has a large global presence, and this could introduce potential conflicts if Mr. Tillerson is selected. The company explores for oil and gas on six of the world's continents and has operations in more than 50 countries.

Mr. Tillerson is slated to retire next year and has retirement funds worth tens of millions of dollars, a value that could potentially be affected by State Department activities. For example, he could benefit from such potential department actions as the lifting of sanctions on Russia.

The Obama administration and European allies have imposed several rounds of economic sanctions against Russia following its annexation of Crimea in 2014. The Obama administration also has accused the Kremlin of backing militants in eastern Ukraine even after the annexation of Crimea.

As Exxon's CEO, Mr. Tillerson has spoken against sanctions on Russia. Mr. Tillerson's work there dates to when Mr. Putin rose to power after Boris Yeltsin's resignation.

"We always encourage the people who are making those decisions to consider the very broad collateral damage of who are they really harming with sanctions," he said at the company's annual meeting in May 2014.

Mr. Tillerson grew up in Texas and in 1975 joined Exxon, where he has spent his entire career. He has long been closely affiliated with Republican politicians and the Boy Scouts of America, but he has never worked in government.

While unusual, the choice of a corporate leader as secretary of state wouldn't be unprecedented. George Shultz was the executive vice president of engineering giant Bechtel before he became secretary of state under President Ronald Reagan, though Mr. Shultz had been in government in a prior administration.

Mr. Trump also is expected to tap Rep. Cathy McMorris Rodgers (R., Wash.) to lead the Interior Department, according to a person familiar with the matter.

If confirmed by the Senate, she would lead Mr. Trump's efforts to open up federal lands and waters to fossil-fuel development and reverse environmental policies the Obama administration has pursued.

Since her first election to Congress in 2004, Ms. McMorris Rodgers has risen in the ranks and is now the fourth-highest-ranking Republican in the House and the highest-ranking GOP woman in Congress. She also serves on the Energy and Commerce Committee

Write to John D. McKinnon at john.mckinnon@wsj.com and Eric Morath at eric.morath@wsj.com

Credit: By John D. McKinnon and Eric Morath

Subject: Agreements; Diplomatic & consular services; International relations; Television news

Location: United States--US Russia

Company / organization: Name: Central Intelligence Agency--CIA; NAICS: 928110, 928120; Name: Fox News Channel; NAICS: 515120; Name: Senate-Foreign Relations, Committee on; NAICS: 921120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 11, 2016

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1847638302

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon CEO Rex Tillerson Faces Senate Dissent as Potential State Pick; Trump's top choice for secretary of state faces bipartisan resistance over ties to Putin

Author: Peterson, Kristina; Nicholas, Peter; Ballhaus, Rebecca

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Dec 2016: n/a.

ProQuest document link

Abstract:

Alternatives he has been vetting include former Central Intelligence Agency Director David Petraeus, 2012 Republican presidential nominee Mitt Romney, U.S. Sen. Bob Corker (R., Tenn.), who heads the Senate Foreign Relations Committee, and John Bolton, a former U.S. ambassador to the United Nations.

Links: 360 Link to Full Text

Full text:  

WASHINGTON--Exxon Mobil Corp. Chief Executive Rex Tillerson, the top choice for secretary of state in a Trump administration, faces bipartisan resistance in Congress over his ties to Russian President Vladimir Putin.

Republican hesitation over Mr. Tillerson marked the first sign of division between congressional GOP and the Trump team over its likely cabinet picks. All of President-elect Donald Trump's other nominees so far appear likely to be confirmed by the Senate.

Mr. Tillerson, a seasoned deal-maker whose company has a long history of doing business in Russia, is drawing unease from senators on both sides of the aisle. Republicans can likely afford to lose only two GOP votes next year in the new Congress when it meets to consider Mr. Trump's nominees.

"It's a matter of concern to me that he has such a close personal relationship with Vladimir Putin," Sen. John McCain (R., Ariz.) said Sunday on CBS, noting that the two men had done "enormous deals" together. "That would color his approach to Vladimir Putin and the Russian threat."

Sen. Ben Cardin of Maryland, the top Democrat on the Foreign Relations Committee, said Sunday on CNN that he was "concerned about his [Mr. Tillerson's] relationship with Russia. We want to make sure that the secretary of state is a person who represents America."

Mr. Trump defended Mr. Tillerson as a "world-class player" and said it was "a great advantage" that Mr. Tillerson already knows "many of the players," noting that he does "massive deals in Russia."

"He's more than a business executive,'' Mr. Trump told Fox News in an interview broadcast Sunday.

Trump transition officials said the president-elect is likely to announce his choice for secretary of state midweek. Mr. Trump has given himself time to alter course should his views change or if he concludes Mr. Tillerson couldn't win Senate confirmation.

Alternatives he has been vetting include former Central Intelligence Agency Director David Petraeus, 2012 Republican presidential nominee Mitt Romney, U.S. Sen. Bob Corker (R., Tenn.), who heads the Senate Foreign Relations Committee, and John Bolton, a former U.S. ambassador to the United Nations.

"It's not over, but it looks like Mr. Tillerson is certainly way out in front right now," said U.S. Rep. Dana Rohrabacher (R., Calif.), who also had discussions with Trump transition officials about becoming secretary of state.

No Senate Republicans have yet said they would vote against Mr. Tillerson. Mr. Corker said in a tweet Saturday that the CEO is "a very impressive individual."

Still, a number of senators expressed reservations. Sen. Marco Rubio (R., Fla.), a member of the Foreign Relations Committee, the panel that would hold confirmation hearings on the nomination, said in a tweet Sunday that "being a 'friend of Vladimir' is not an attribute I am hoping for" in the next secretary of state.

The U.S. and its allies imposed sanctions two years ago on Russia after the country's invasion of Crimea and its conflicts with Ukraine.

Exxon has spent years lobbying the State Department on trade and energy issues, including hydraulic fracturing and U.S. relations with Russia. In 2014, the company lobbied the department on a bill that sought to broaden the U.S. economic sanctions, according to federal lobbying disclosures. The bill didn't pass.

In a Securities and Exchange Commission filing that year, Exxon said those sanctions were costing the company $1 billion.

Exxon declined to comment on Mr. Tillerson or his ties to Russia.

Mr. Tillerson is set to retire from Exxon next year. His appointment would still generate the possibility of conflicts of interest because of his financial stake in the company, which explores for oil and gas on six of the world's seven continents and has operations in more than 50 countries. He owns Exxon shares worth $151 million, according a recent securities filing, and many of those shares aren't scheduled to vest for almost a decade.

Mr. Tillerson has known Mr. Putin since he represented Exxon's interests in Russia during the regime of Boris Yeltsin. In a sign of the close relationship, the Kremlin bestowed the country's Order of Friendship decoration on Mr. Tillerson after he struck a 2011 deal that gave Exxon access to prized Arctic resources and allowed Russia state oil company OAO Rosneft to invest in Exxon concessions around the world.

Mr. Tillerson's past opposition to sanctions on Russia is likely to trigger blowback among Senate Republicans, many of whom have rejected Mr. Trump's more conciliatory stance toward the country and its president.

Mr. Tillerson spoke in opposition to the sanctions on Russia at Exxon's annual meeting in 2014, after implementation of the company's 2011 deal with Russia had been blocked by the sanctions.

Michael McFaul, who served as U.S. ambassador to Russia in the Obama administration, said on Sunday sanctions were imposed because of Russia's intervention in Ukraine and should only be lifted if Moscow meets certain conditions.

"I worry that because of his [Tillerson's] previous relationship with these people...that he would have a particular perspective on that issue," he said.

Because of a rules change pushed through by Senate Democrats in November 2013, most presidential nominees can be confirmed with a simple majority, or 51 votes when all senators are present. Previously, nominees needed 60 votes to clear procedural hurdles.

Republicans will hold 52 seats in the Senate next year, giving them little room for internal dissension over Mr. Trump's nominees. The GOP can effectively lose no more than two votes, if all Democrats oppose a nominee, since Vice President-elect Mike Pence could cast a tiebreaking vote.

In a push that could make the margin even narrower, Democrats are urging Sen. Jeff Sessions (R., Ala.), Mr. Trump's nominee for attorney general, to recuse himself from voting on potential cabinet colleagues. Mr. Sessions' staff didn't immediately respond to a request for comment.

Still, Republicans so far have treaded cautiously in opposing Mr. Trump. Last week they played down their differences with the president-elect after he called for 35% tariffs on companies that move factories out of the U.S., a move that would fly in the face of traditional GOP free-market ideology.

In 2011, Exxon lobbied the State Department on "discussions related to the Colombia, Panama and Korea Free Trade agreements, and Russia's ascension into World Trade Organization," according to the company's disclosures. That year, the WTO cleared the way to allow Russia to join, a move that opened Russian markets to foreign competitors by cutting tariffs and breaking down trade barriers.

Exxon has had a "continuous business presence" in Russia for the last two decades, according to its website.

This year, the company has lobbied the State Department largely on trade and energy issues, including an agreement that would open up closed sectors of China's economy.

Overall, Exxon spent $8.8 million on lobbying the federal government in the first three quarters of this year, making it the top lobbyist in the oil-and-gas industry, according to a Center for Responsive Politics analysis of the most recent disclosures.

The company's deals in Russia would be certain to come under scrutiny in Senate confirmation hearings. A number of Republicans have urged Mr. Trump to be wary of Russia, warning that it is trying to expand its influence in ways that run counter to U.S. interests in places such as Ukraine and Syria.

Sen. Bob Menendez of New Jersey, a senior Democrat on Foreign Relations, said the selection of Mr. Tillerson would be "guaranteeing Russia has a willing accomplice in the president's cabinet guiding our nation's foreign policy."

Mr. Tillerson, 64 years old, grew up in Texas and in 1975 joined Exxon, where he has spent his entire career. He has long been closely affiliated with Republican politicians and the Boy Scouts of America, but he has never worked in government.

While unusual, the choice of a corporate leader as secretary of state wouldn't be unprecedented. George Shultz was the executive vice president of engineering giant Bechtel before he became secretary of state under President Ronald Reagan, though Mr. Shultz had been in government in a prior administration.

Eric Morath and John D. McKinnon contributed to this article.

Write to Kristina Peterson at kristina.peterson@wsj.com , Peter Nicholas at peter.nicholas@wsj.com and Rebecca Ballhaus at Rebecca.Ballhaus@wsj.com

Related

* Trump Adds to Criticism of Companies

Credit: By Kristina Peterson, Peter Nicholas and Rebecca Ballhaus

Subject: Nominations; Bills; Sanctions; International relations; Congressional committees

Location: United States--US Russia

People: Rubio, Marco Rohrabacher, Dana Corker, Bob Petraeus, David H Romney, W Mitt Putin, Vladimir McCain, John

Company / organization: Name: Congress; NAICS: 921120; Name: Republican Party; NAICS: 813940; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: United Nations--UN; NAICS: 928120; Name: Central Intelligence Agency--CIA; NAICS: 928110, 928120; Name: Fox News Channel; NAICS: 515120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 12, 2016

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1847734905

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Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon CEO Faces Senate Dissent

Author: Peterson, Kristina; Nicholas, Peter; Ballhaus, Rebecca

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]12 Dec 2016: A.1.

ProQuest document link

Abstract:

Exxon Mobil Corp. Chief Executive Rex Tillerson, the top choice for secretary of state in a Trump administration, faces bipartisan resistance in Congress over his ties to Russian President Vladimir Putin. Alternatives he has been vetting include former Central Intelligence Agency Director David Petraeus, 2012 Republican presidential nominee Mitt Romney, U.S. Sen. Bob Corker (R., Tenn.), who heads the Senate Foreign Relations Committee, and John Bolton, a former U.S. ambassador to the United Nations.

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WASHINGTON -- Exxon Mobil Corp. Chief Executive Rex Tillerson, the top choice for secretary of state in a Trump administration, faces bipartisan resistance in Congress over his ties to Russian President Vladimir Putin.

GOP hesitation over Mr. Tillerson marked the first sign of division between congressional Republicans and the Trump team over its likely cabinet picks. All of President-elect Donald Trump's other nominees so far appear likely to be confirmed by the Senate.

Mr. Tillerson, a seasoned deal-maker whose company has a long history of doing business in Russia, is drawing unease from senators on both sides of the aisle. Republicans can likely afford to lose only two GOP votes next year in the new Congress when it meets to consider Mr. Trump's nominees.

"It's a matter of concern to me that he has such a close personal relationship with Vladimir Putin," Sen. John McCain (R., Ariz.) said Sunday on CBS, noting that the two men had done "enormous deals" together. "That would color his approach to Vladimir Putin and the Russian threat."

Sen. Ben Cardin of Maryland, the top Democrat on the Foreign Relations Committee, the panel that would hold confirmation hearings on the nomination, said Sunday on CNN that he was "concerned about his [Mr. Tillerson's] relationship with Russia. We want to make sure that the secretary of state is a person who represents America."

Mr. Trump defended Mr. Tillerson as a "world-class player" and said it was "a great advantage" that Mr. Tillerson already knows "many of the players," noting that he does "massive deals in Russia."

"He's more than a business executive," Mr. Trump told Fox News in an interview broadcast Sunday.

Trump transition officials said the president-elect is likely to announce his choice for secretary of state midweek. Mr. Trump has given himself time to alter course should his views change or if he concludes Mr. Tillerson couldn't win Senate confirmation.

Alternatives he has been vetting include former Central Intelligence Agency Director David Petraeus, 2012 Republican presidential nominee Mitt Romney, U.S. Sen. Bob Corker (R., Tenn.), who heads the Senate Foreign Relations Committee, and John Bolton, a former U.S. ambassador to the United Nations.

"It's not over, but it looks like Mr. Tillerson is certainly way out in front right now," said U.S. Rep. Dana Rohrabacher (R., Calif.), who also had discussions with Trump transition officials about becoming secretary of state.

No Senate Republicans have yet said they would vote against Mr. Tillerson. Mr. Corker said in a tweet Saturday that the CEO is "a very impressive individual."

Still, a number of senators expressed reservations. Sen. Marco Rubio (R., Fla.), a member of the Foreign Relations Committee, said in a tweet Sunday that "being a 'friend of Vladimir' is not an attribute I am hoping for" in the next secretary of state.

The U.S. and its allies imposed sanctions two years ago on Russia after the country's invasion of Crimea and its conflicts with Ukraine.

Exxon has spent years lobbying the State Department on trade and energy issues, including hydraulic fracturing and U.S. relations with Russia. In 2014, the company lobbied the department on a bill that sought to broaden the U.S. economic sanctions, according to federal lobbying disclosures. The bill didn't pass.

In a Securities and Exchange Commission filing that year, Exxon said those sanctions were costing the company $1 billion.

Exxon declined to comment on Mr. Tillerson or his ties to Russia.

Mr. Tillerson is set to retire from Exxon next year. His appointment would still generate the possibility of conflicts of interest because of his financial stake in the company. He owns Exxon shares worth $151 million, according a recent securities filing, and many of those shares aren't scheduled to vest for almost a decade.

Mr. Tillerson has known Mr. Putin since he represented Exxon's interests in Russia during the regime of Boris Yeltsin. In a sign of the close relationship, the Kremlin bestowed the country's Order of Friendship decoration on Mr. Tillerson after he struck a 2011 deal that gave Exxon access to prized Arctic resources and allowed Russia state oil company OAO Rosneft to invest in Exxon concessions globally.

Mr. Tillerson's past opposition to sanctions on Russia is likely to trigger blowback among Senate Republicans, many of whom have rejected Mr. Trump's more conciliatory stance toward the country and its president.

Mr. Tillerson spoke in opposition to the sanctions on Russia at Exxon's annual meeting in 2014, after implementation of the company's 2011 deal with Russia had been blocked by the sanctions.

Michael McFaul, who served as U.S. ambassador to Russia in the Obama administration, said on Sunday sanctions were imposed because of Russia's intervention in Ukraine and should only be lifted if Moscow meets certain conditions.

"I worry that because of his [Tillerson's] previous relationship with these people. . .that he would have a particular perspective on that issue," he said.

Because of a rules change pushed through by Senate Democrats in 2013, most presidential nominees can be confirmed with a simple majority, or 51 votes when all senators are present. Previously, nominees needed 60 votes to clear procedural hurdles.

Republicans will hold 52 seats in the Senate next year, giving them little room for internal dissension over Mr. Trump's nominees. The GOP can effectively lose no more than two votes, if all Democrats oppose a nominee, since Vice President-elect Mike Pence could cast a tiebreaking vote.

---

Eric Morath and John D. McKinnon contributed to this article.

---

Spelling Out a New

Challenge to China

President-elect Donald Trump said the telephone call he took from Taiwan President Tsai Ing-wen earlier this month came to his attention an "hour or two" before the call and wasn't planned for several weeks. He said not taking the call would have been disrespectful. The conversation broke with decades of U.S. policy and runs counter to the longstanding effort by Beijing to avoid formal U.S. diplomatic relations with Taiwan.

"I fully understand the one-China policy," he said in a Fox News interview. "But I don't know why we have to be bound by a one-China policy unless we make a deal with China having to do with other things, including trade." He said the U.S. should only be bound to such a policy when China works more closely with the U.S. on currency issues, South China Sea disputes and North Korea.

-- Eric Morath

Credit: By Kristina Peterson, Peter Nicholas and Rebecca Ballhaus

Subject: Political appointments; Cabinet

Location: United States--US

People: Tillerson, Rex W Trump, Donald J

Company / organization: Name: Republican Party; NAICS: 813940; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.1

Publication year: 2016

Publication date: Dec 12, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1847765035

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1847765035?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Russia Welcomes Idea of Rex Tillerson as Secretary of State; Exxon Mobil CEO has appeared as the top choice for secretary of state in a Trump administration

Author: Grove, Thomas

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Dec 2016: n/a.

ProQuest document link

Abstract:

"Regarding confirmation of whether he has good or bad ties with the Russian Federation, there is a large difference between being a secretary and being the head of even a very large company," he said. [...]any personal sympathy, so to speak, must take a back seat."

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MOSCOW--President-elect Donald Trump's top choice for secretary of state has met President Vladimir Putin on several occasions in the course of discussing oil deals in Russia, a spokesman for the Kremlin said Monday.

Exxon Mobil Corp. Chief Executive Rex Tillerson, a seasoned deal-maker whose company has a long history of doing business in Russia, is expected to be Mr. Trump's pick, a transition official said Saturday.

"They [Messrs. Putin and Tillerson] have held business meetings. Indeed, the president has met Mr. Tillerson together with his partners in the Russian Federation," spokesman Dmitry Peskov told Russian news agencies.

Mr. Peskov said the Kremlin would hope to have a good relationship with Mr. Tillerson, which could facilitate a constructive relationship between Washington and Moscow.

"Regarding confirmation of whether he has good or bad ties with the Russian Federation, there is a large difference between being a secretary and being the head of even a very large company," he said. "Therefore, any personal sympathy, so to speak, must take a back seat."

Mr. Putin awarded Mr. Tillerson the Order of Friendship in 2013 for boosting ties between Russia and the U.S. before bilateral relations plunged in the wake of the separatist uprising in Ukraine and Russia's annexation of Crimea. The executive was given the order after Exxon Mobil clinched an Arctic exploration pact with state-controlled PAO Rosneft.

"He carried out his duties extremely professionally," Mr. Peskov said. Drilling under that pact was later put on hold after the U.S. applied sanctions on Russia over Ukraine.

Write to Thomas Grove at thomas.grove@wsj.com

Credit: By Thomas Grove

Subject: Presidents

Location: United States--US Russia Ukraine

People: Trump, Donald J

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 12, 2016

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1847873008

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or dis tribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

In Exxon Case, Judge Cancels Massachusetts AG's Dallas Deposition; Earlier order from Texas federal district judge required Maura Healey's appearance on Tuesday to answer questions under oath on climate-change probe

Author: Orden, Erica

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Dec 2016: n/a.

ProQuest document link

Abstract:

Typically, the "bad faith standard" is reserved for a situation in which a judge observes "a level of personal aggrandizement," said James Tierney, program director of the National State Attorneys General Program and the former attorney general of Maine.

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Massachusetts Attorney General Maura Healey won't have to be deposed in Dallas on Tuesday in a lawsuit by Exxon Mobil Corp. against her office after a federal district judge reversed his earlier order.

The Monday cancellation by U.S District Court Judge Ed Kinkeade represents the latest development in a potentially lengthy and costly legal fight touched off in June, when the oil giant sued Ms. Healey and New York Attorney General Eric Schneiderman for launching an allegedly illegal investigation into whether the company misled investors on climate change.

The attorneys general, both Democrats, have been exploring perceived discrepancies between Exxon's public statements on global warming and their internal research on climate change over several decades.

On Monday, Judge Kinkeade also ordered the parties to submit briefs regarding whether the district court has proper authority to hear a case involving the two attorneys general.

The standoff between Exxon and the attorneys general has escalated in recent weeks, as the prosecutors have fought the unusual order from the Texas federal judge requiring Ms. Healey and possibly Mr. Schneiderman to fly to Dallas to sit for questioning by Exxon's lawyers.

That directive came on top of another legal rarity: Judge Kinkeade's authorization for Exxon to do more fact-finding, delivered in an opinion that raised questions about whether Ms. Healey's office was investigating Exxon in bad faith.

That step, said legal experts, is what sets the case apart.

Typically, the "bad faith standard" is reserved for a situation in which a judge observes "a level of personal aggrandizement," said James Tierney, program director of the National State Attorneys General Program and the former attorney general of Maine. He cited as an example a hypothetical scenario in which a prosecutor is seen as pursuing a probe of someone who dated the prosecutor's sister, and had a bad break-up.

"The implications of this are really, really serious," said Mr. Tierney, a Democrat who has worked with attorneys general of both political parties, noting that he believes the effect is that it "chills all legitimate investigations. This isn't about Exxon. This is about an attempt to chill government's ability to investigate malfeasance."

A spokesman for Exxon declined to comment on Monday. In the past, Exxon has said it follows all financial rules and regulations, and has said, "we have no choice but to defend ourselves against politically motivated investigations that are biased, in bad faith and without legal merit."

Exxon's extraordinary progress in its lawsuit has been met with forceful pushback.

In its appeal to the Fifth Circuit, Ms. Healey's office wrote that "[i]t is settled in this Circuit that it is inappropriate to probe the mental processes of a government official absent extraordinary circumstances (none of which are present here)..."

Mr. Schneiderman's office has been examining both Exxon's accounting practices--the company having maintained the value of its huge oil and gas reserves in the face of declining energy prices--as well as Exxon's past knowledge of the impact of climate change and how it could affect its future business.

"Exxon's unprecedented litigation in Texas represents nothing more than a blatant attempt to avoid accountability under New York law in New York courts where--just the other day, in open court--Exxon again acknowledged the legitimacy of the Attorney General's investigation and agreed to comply with our subpoenas," said Eric Soufer, a spokesman for Mr. Schneiderman.

Chloe Gotsis, a spokeswoman for Ms. Healey, called the company's tactics tantamount to an infringement of state prosecutorial jurisdiction.

"Exxon's tactics are a direct assault on the authority of states to enforce our laws," Ms. Gotsis said. On Monday she added that Ms. Healey's office "has argued strongly that the Texas court has no jurisdiction over our investigation and we will continue to urge it to dismiss Exxon's lawsuit against us."

Write to Erica Orden at erica.orden@wsj.com

Earlier Coverage

* Massachusetts AG Protests Order Summoning Her to Texas for Exxon Deposition (Nov. 28, 2016)

* Exxon Judge to New York and Massachusetts AGs: Prepare to Testify in Dallas (Nov. 18, 2018)

* Exxon's Accounting Practices Are Investigated (Sept. 16, 2016)

* Exxon Fires Back at Climate-Change Probe (April 13, 2016)

Credit: By Erica Orden

Subject: Attorneys general; Climate change; Bad faith; Federal court decisions

Location: Texas Massachusetts New York

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 12, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1847942632

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Donald Trump Chooses Exxon Mobil CEO Rex Tillerson as Secretary of State; Trump rejects campaign allies and political figures with pick; nomination expected to face bipartisan resistance in Senate

Author: Nicholas, Peter; Lee, Carol E

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Dec 2016: n/a.

ProQuest document link

Abstract:

WASHINGTON--President-elect Donald Trump has named Exxon Mobil Corp. Chief Executive Rex Tillerson as his secretary of state, a transition official said Monday, picking a veteran CEO who has had extensive overseas business dealings but whose relationships with foreign leaders could complicate his confirmation prospects. Yet he's seen as one of the most hawkish members of the Republican Party in recent decades, advocating for the U.S. to bomb Iranian nuclear sites and opposing any diplomatic negotiations with North Korea.

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WASHINGTON--President-elect Donald Trump has named Exxon Mobil Corp. Chief Executive Rex Tillerson as his secretary of state, a transition official said Monday, picking a veteran CEO who has had extensive overseas business dealings but whose relationships with foreign leaders could complicate his confirmation prospects.

Mr. Tillerson was a comparatively late entry in the secretary of state competition, but he impressed the president-elect as a successful deal-maker in what one transition aide called the "Trumpian" mold.

If confirmed by the U.S. Senate, Mr. Tillerson will be the public face of a diplomatic approach that envisions more cooperation with Russia and concessions from China on trade and security matters.

"His tenacity, broad experience and deep understanding of geopolitics make him an excellent choice for Secretary of State," Mr. Trump said in a statement. "He will promote regional stability and focus on the core national security interests of the United States. Rex knows how to manage a global enterprise, which is crucial to running a successful State Department, and his relationships with leaders all over the world are second to none.

Mr. Trump injected a bit of theater into what is normally a staid and behind-the-scenes process, offering personal impressions of the candidates and tweeting out his timetable for a decision.

On Sunday, he tweeted that Mr. Tillerson is a "world class player and dealmaker."

"Stay tuned!" he wrote.

Word of Mr. Trump's selection began leaking out Monday night.

One of the finalists, 2012 Republican presidential nominee Mitt Romney, wrote a message on Facebook that suggested he was out of the running.

Mr. Romney wrote: "It was an honor to have been considered for secretary of state of our great country."

In choosing Mr. Tillerson, the president-elect passed over various campaign allies and established political figures. Among those he considered--and rejected--were former New York City Mayor Rudy Giuliani, one of his closest campaign advisers; U.S. Sen. Bob Corker (R., Tenn.), chairman of the Senate Foreign Relations Committee; and David Petraeus, a former director of the CIA.

In the days after the election, Mr. Giuliani was seen as the top contender. But Mr. Giuliani, one of Mr. Trump's most loyal campaign supporters, took himself out of contention on Nov. 29, Mr. Trump said.

Mr. Corker was the most traditional candidate. The current and previous secretaries of state, John Kerry and Hillary Clinton, came out of the Senate.

Gen. Petraeus, a former commander of troops in Iraq and Afghanistan, would have brought extensive military and intelligence experience to the job. He was director of the Central Intelligence Agency during the Obama administration. But Gen. Petraeus also faced scrutiny of his 2015 guilty plea to a misdemeanor charge of mishandling classified material in a case involving his biographer, with whom he said he had an extramarital affair.

In addition, John Bolton, who served as U.S. ambassador to the United Nations in the George W. Bush administration, was a candidate with a background in diplomatic service. Also during the Bush administration, Mr. Bolton served as the State Department's counterproliferation czar and focused specifically on the Iranian and North Korean threats. Yet he's seen as one of the most hawkish members of the Republican Party in recent decades, advocating for the U.S. to bomb Iranian nuclear sites and opposing any diplomatic negotiations with North Korea. He could have been at odds with Mr. Trump on some issues, given the president-elect has suggested the U.S. should pull back from overseas intervention.

Mr. Tillerson's nomination faces bipartisan resistance in the Senate over his ties to Russian President Vladimir Putin.

His company has long done business in Russia. He has known Mr. Putin since he represented Exxon's interests in Russia during the regime of Boris Yeltsin. In a sign of the close relationship, the Kremlin bestowed the country's Order of Friendship decoration on Mr. Tillerson after he struck a 2011 deal that gave Exxon access to prized Arctic resources and allowed Russian state oil company OAO Rosneft to invest in Exxon concessions around the world.

Mr. Tillerson's past opposition to sanctions on Russia is likely to trigger blowback among Senate Republicans, many of whom have rejected Mr. Trump's more conciliatory stance toward the country and its president. No Senate Republicans have yet said they would vote against Mr. Tillerson. But a number of senators expressed reservations. Sen. Marco Rubio (R., Fla.), a member of the Foreign Relations Committee, the panel that would hold confirmation hearings on the nomination, said in a tweet Sunday that "being a 'friend of Vladimir' is not an attribute I am hoping for" in the next secretary of state.

Mr. Trump's secretary of state will have to navigate a host of high-stakes foreign policy challenges across the globe. The country's top diplomat also will be tasked with carrying out Mr. Trump's vision for the U.S. role on the world stage, which is so far not entirely clear.

A Trump administration will quickly have to contend with a volatile Middle East. Military involvement by Russia and Iran to boost the Assad regime in Syria has complicated the fight against Islamic State. The next secretary of state would be at the forefront of any negotiations with Russia on a resolution to the Syrian conflict while also tending to U.S. allies in the region who oppose the Assad regime.

Mr. Trump's approach to U.S. relations with Russia will be one of his most closely watched moves, given his comments about Russian President Vladimir Putin and U.S. intelligence assessment that Moscow used cyberattacks to try to help Mr. Trump in the election. Republican leaders in Congress recently have expressed deep misgivings about any warming to Mr. Putin.

Mr. Trump also has signaled that he wants to implement a more adversarial relationship with China , challenging Beijing on trade and security measures. Mr. Trump's relations with China are already off to a rocky start, with Beijing balking at his protocol-breaking phone call with the president of Taiwan .

Mr. Trump will need China, however, in efforts to address the growing threat from North Korea. China is seen as one of the few countries in the world with influence over Pyongyang. President Barack Obama told Mr. Trump that he believes North Korea is the biggest foreign policy challenge he faces once in office.

He'll have to decide whether to adhere to the international Paris climate change agreement and to continue with the re-establishment of U.S. relations with Cuba. Both were among Mr. Obama's top foreign policy initiatives and have drawn opposition from Republicans.

Mr. Trump hasn't specifically said whether he will roll back the deal the U.S. and other world powers reached with Iran to restrain its nuclear program, though he has been a fierce critic of the agreement. Israeli Prime Minister Benjamin Netanyahu has already begun to put pressure on Mr. Trump to back out of the deal, while Mr. Obama has tried to convince his successor that doing so would be a bad idea. U.S. relations with Israel have been deeply strained by disagreements between Messrs. Obama and Netanyahu on the Iran deal and other issues.

"I am honored by President-elect Trump's nomination and share his vision for restoring the credibility of the United States' foreign relations and advancing our country's national security," Mr. Tillerson said in a statement. "We must focus on strengthening our alliances, pursuing shared national interests and enhancing the strength, security and sovereignty of the United States."

Bradley Olson and Kristina Peterson contributed to this article

Write to Peter Nicholas at peter.nicholas@wsj.com and Carol E. Lee at carol.lee@wsj.com

Read More

* Rubio Has 'Serious Concerns' With Tillerson Pick

* Deals With Putin Helped Fuel Tillerson's Rise

* GOP Leaders Join Call for Probe of Russian Hacking

* Russia Welcomes Idea of Tillerson as Secretary of State

* Tillerson Faces Senate Dissent as Potential State Pick

* Exxon's Transition to Tillerson's Successor Likely to Accelerate

* Trump Says Sons 'Plus Executives' Will Run Business

* Trump Postpones News Conference on Business Interests

Credit: By Peter Nicholas and Carol E. Lee

Subject: Presidents; Bills; Elections; International relations; Political campaigns

Location: China Russia United States--US

People: Putin, Vladimir Corker, Bob Romney, W Mitt Clinton, Hillary Kerry, John F

Company / organization: Name: Central Intelligence Agency--CIA; NAICS: 928110, 928120; Name: Senate; NAICS: 921120; Name: Senate-Foreign Relations, Committee on; NAICS: 921120; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 13, 2016

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1847989623

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Business News: Judge Reverses Exxon Ruling

Author: Orden, Erica

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]13 Dec 2016: B.5.

ProQuest document link

Abstract:

Typically, the "bad faith standard" is reserved for a situation in which a judge observes "a level of personal aggrandizement," said James Tierney, program director of the National State Attorneys General Program and the former attorney general of Maine.

Links: 360 Link to Full Text

Full text:  

Massachusetts Attorney General Maura Healey won't have to be deposed in Dallas on Tuesday in a lawsuit by Exxon Mobil Corp. against her office after a federal judge reversed his earlier order.

The Monday cancellation by U.S. District Judge Ed Kinkeade represents the latest development in a potentially lengthy and costly legal fight touched off in June, when the oil company sued Ms. Healey and New York Attorney General Eric Schneiderman for launching an allegedly illegal investigation into whether the company misled investors on climate change.

The attorneys general, both Democrats, have been exploring perceived discrepancies between Exxon's public statements on global warming and its internal research on climate change over several decades.

On Monday, Judge Kinkeade also ordered the parties to submit briefs regarding whether the court has authority to hear a case involving the two attorneys general.

The standoff between Exxon and the attorneys general has escalated in recent weeks, as prosecutors have fought the unusual order from the Texas federal judge requiring Ms. Healey and possibly Mr. Schneiderman to travel to Dallas to sit for questioning by Exxon's lawyers.

That directive came in addition to another legal rarity: Judge Kinkeade's authorization for Exxon to do more fact-finding, delivered in an opinion that raised questions about whether Ms. Healey's office was investigating Exxon in bad faith.

That step, said some legal observers, is what sets the case apart. Typically, the "bad faith standard" is reserved for a situation in which a judge observes "a level of personal aggrandizement," said James Tierney, program director of the National State Attorneys General Program and the former attorney general of Maine.

"The implications of this are really, really serious," said Mr. Tierney, a Democrat who has worked with attorneys general of both political parties, noting that he believes the effect is that it "chills all legitimate investigations."

A spokesman for Exxon declined to comment. In the past, Exxon has said it follows all financial rules and regulations.

Chloe Gotsis, a spokeswoman for Ms. Healey, called the company's tactics tantamount to an infringement of state prosecutorial jurisdiction.

Credit: By Erica Orden

Subject: Federal court decisions; Climate change

People: Healey, Maura T

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.5

Publication year: 2016

Publication date: Dec 13, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1848023836

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848023836?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journa l

Deals With Vladimir Putin Helped Fuel Rise of Secretary of State Nominee Rex Tillerson; The Exxon Mobil chief chosen by Donald Trump has ties with Russian leader, others with strained relations with U.S.

Author: Scheck, Justin; Marson, James; Gold, Russell

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Dec 2016: n/a.

ProQuest document link

Abstract:

Leading Exxon, Mr. Tillerson's challenge has been to get access to oil and gas deposits, often in far-flung nations, by building relationships with leaders controlling big chunks of the world's fossil-fuel wealth--some of them strongmen on the wrong side of the U.S. government. Using its might as one of the world's largest non-state-owned oil companies and one of a handful with the engineering expertise to tackle difficult projects, Exxon has been more direct, more demanding, and more likely to make take-it-or-leave-it offers to foreign leaders than others, according to a former executive at a rival who partnered with Exxon in joint ventures.

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Full text:  

Rex Tillerson was propelled to the top of Exxon Mobil Corp. partly by negotiating a deal with Vladimir Putin to kickstart an oil project in Russia's Far East, one of a series of agreements between the pair stretching back to 1999.

That relationship is both Mr. Tillerson's biggest claim to the nomination as Donald Trump's secretary of state , and potentially the biggest concern about him in Congress--where members of both parties are pushing for an investigation into Russia's alleged hacking and its impact on the U.S. election.

"I have a very close relationship with" Mr. Putin, Mr. Tillerson told students at the University of Texas, his alma mater, in February. "I don't agree with everything he's doing. I don't agree with everything a lot of leaders are doing. But he understands that I am a businessman. And I have invested a lot of money, our company has invested a lot of money, in Russia, very successfully."

Leading Exxon, Mr. Tillerson's challenge has been to get access to oil and gas deposits, often in far-flung nations, by building relationships with leaders controlling big chunks of the world's fossil-fuel wealth--some of them strongmen on the wrong side of the U.S. government. He has done business with dictators in Chad and Angola and talked oil with the former Libyan leader Moammar Gadhafi.

Exxon didn't respond to questions about Mr. Tillerson's tenure on Monday.

Like other big oil players, Mr. Tillerson's Exxon partnered with companies owned by Saudi Arabia, a longtime U.S. ally that also been a recent target of American politicians.

Such efforts required diplomacy of sorts, but on behalf of Exxon and its shareholders--as he told his Texas audience that he often reminds his foreign counterparts. "I'm not here to represent the United States government's interest. I'm not here to defend it nor am I here to criticize it. That's not what I do--I'm a businessman," he said.

That has meant operating in a way that wasn't always aligned with U.S. interests, and sometimes without so much as a courtesy call to local U.S. embassies, according to two former U.S. diplomats who worked in countries where Exxon operated.

Using its might as one of the world's largest non-state-owned oil companies and one of a handful with the engineering expertise to tackle difficult projects, Exxon has been more direct, more demanding, and more likely to make take-it-or-leave-it offers to foreign leaders than others, according to a former executive at a rival who partnered with Exxon in joint ventures.

"This is what we want," Mr. Tillerson would tell regimes, the former rival said, "That is what you will get."

Mr. Tillerson's career has been defined most by his work in Russia, where he sometimes negotiated major deals directly with Mr. Putin. He was a rising star at Exxon in the late 1990s when he was tasked with handling a politically and technologically complex oil project in Russia.

The $17 billion development to drill for oil on Russia's Pacific island of Sakhalin had been tied up in bureaucratic knots for years.

He was successful, in part because he negotiated with Mr. Putin. That helped him catapult past other executives to lead the company in 2006.

As the project was progressing in the early 2000s, Mr. Putin's Kremlin was becoming more assertive in its dealings with Western oil companies, which some felt had received too-favorable deals in the 1990s.

Mr. Tillerson navigated that situation in part by keeping state-controlled PAO Rosneft as a partner in the project. Rosneft has since grown to become the one of the largest publicly traded oil producers in the world.

Mr. Tillerson teamed up again with Rosneft in 2011 as global majors were jostling for a piece of potentially huge resources in the Russian Arctic.

BP PLC Chief Executive Robert Dudley was trying to secure plum Arctic fields for the U.K.-based oil company; but his partners in another Russian venture, TNK-BP, managed to block the deal, and Mr. Tillerson swooped in.

At a meeting with Mr. Putin in June 2012, Mr. Tillerson said Exxon's Arctic deal enhanced ties between the U.S. and Russia. "I agree, as you point out, that nothing strengthens relationships between countries better than business enterprise," a Kremlin transcript quoted him as saying.

The next year, Mr. Putin awarded him Russia's Order of Friendship for his work.

But the company suffered a setback in its efforts to profit from its Russia dealings after the Kremlin annexed Crimea , and official ties deteriorated between the U.S. and Russia. After Moscow's military intervened in eastern Ukraine, the Obama administration added more sanctions, including on Russian energy companies such as Rosneft, forcing a halt to drilling in the Arctic.

William W. George, an Exxon board member until last year, said Mr. Tillerson opposed the U.S. sanctions . But "Rex didn't fight it,'' Mr. George said. "He didn't go to court.''

Mr. George, a former chief executive of Medtronic Inc. who now teaches leadership as a senior fellow at Harvard, said Mr. Tillerson's extensive dealings with foreign leaders like Mr. Putin should help him as secretary of state. "He would never put Putin's interests ahead of Exxon's when I was there,'' said Mr. George.

Under Mr. Tillerson, Exxon dealt extensively with countries near the top of Transparency International's most-corrupt list, including Chad, Papua New Guinea, Venezuela, Libya, Iraq, Angola and Equatorial Guinea.

He led Exxon into Iraq's semiautonomous Kurdistan region in 2011 against the wishes of the Baghdad government--and the U.S. State Department.

Along the way, Mr. Tillerson has sometimes run into criticism. He kept pumping oil in Chad, for example, even after international oil profits were being used to support the autocratic government's military operations.

In January 2006, in his first days of Mr. Tillerson's tenure at the top of Exxon, Chadian leader Idriss Deby and the World Bank argued over oil revenue generated by an Exxon-led consortium. The World Bank froze assets to pressure the military ruler to abide by an agreement that allowed outside groups to use some oil proceeds on health clinics and schools.

Exxon stuck to its contract, even though that meant making multimillion payments to the ruler, who used the money for military protection to stay in power. "They had a job to do and their job was to get oil out. They had a contract and they were going to stick to it," said a person with direct knowledge of the situation.

Compared with his extensive dealings with Russia, Mr. Tillerson's contact with China has been limited to building a large refinery and petrochemical facility in Fujian province.

"I don't think he's very well known to the Chinese government leaders," said Victor Gao, a former top executive at state-owned oil company Cnooc Ltd.

Mr. Tillerson's Russian oil diplomacy was on display during a visit to Moscow in June, when he was asked about the economic sanctions that have blocked Exxon from reaping the benefits of the Arctic-drilling agreement and partnership he helped broker in 2011.

Referring to Igor Sechin, the head of Rosneft and a close ally of Mr. Putin, he said: "As to the sanctions questions, I'll use the same approach that my friend Mr. Sechin took. That's a question for the government. So if there's a U.S. government official here who'd like to respond, I'm happy to toss it to them."

Mr. Sechin burst into laughter and gave Mr. Tillerson a thumbs-up.

Joann S. Lublin, Brian Spegele and Joe Parkinson contributed to this article.

Write to Justin Scheck at justin.scheck@wsj.com , James Marson at james.marson@wsj.com and Russell Gold at russell.gold@wsj.com

Credit: Justin Scheck, James Marson, Russell Gold

Subject: Acquisitions & mergers; Diplomatic & consular services; Presidents

Location: Chad Russia United States--US

People: Qaddafi, Muammar El Trump, Donald J

Company / organization: Name: Congress; NAICS: 921120; Name: OAO Rosneft; NAICS: 324110; Name: University of Texas; NAICS: 611310

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 13, 2016

Section: World

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1848085514

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Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon CEO Rex Tillerson Faces Senate Dissent as Potential State Pick; Trump's top choice for secretary of state faces bipartisan resistance over ties to Putin

Author: Peterson, Kristina; Nicholas, Peter; Ballhaus, Rebecca

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Dec 2016: n/a.

ProQuest document link

Abstract:

Alternatives he has been vetting include former Central Intelligence Agency Director David Petraeus, 2012 Republican presidential nominee Mitt Romney, U.S. Sen. Bob Corker (R., Tenn.), who heads the Senate Foreign Relations Committee, and John Bolton, a former U.S. ambassador to the United Nations.

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WASHINGTON--Exxon Mobil Corp. Chief Executive Rex Tillerson, the top choice for secretary of state in a Trump administration, faces bipartisan resistance in Congress over his ties to Russian President Vladimir Putin.

GOP hesitation over Mr. Tillerson marked the first sign of division between congressional Republicans and the Trump team over its likely cabinet picks. All of President-elect Donald Trump's other nominees so far appear likely to be confirmed by the Senate.

Mr. Tillerson, a seasoned deal-maker whose company has a long history of doing business in Russia, is drawing unease from senators on both sides of the aisle. Republicans can likely afford to lose only two GOP votes next year in the new Congress when it meets to consider Mr. Trump's nominees.

"It's a matter of concern to me that he has such a close personal relationship with Vladimir Putin," Sen. John McCain (R., Ariz.) said Sunday on CBS, noting that the two men had done "enormous deals" together. "That would color his approach to Vladimir Putin and the Russian threat."

Sen. Ben Cardin of Maryland, the top Democrat on the Foreign Relations Committee, the panel that would hold confirmation hearings on the nomination, said Sunday on CNN that he was "concerned about his [Mr. Tillerson's] relationship with Russia. We want to make sure that the secretary of state is a person who represents America."

Mr. Trump defended Mr. Tillerson as a "world-class player" and said it was "a great advantage" that Mr. Tillerson already knows "many of the players," noting that he does "massive deals in Russia."

"He's more than a business executive,'' Mr. Trump told Fox News in an interview broadcast Sunday.

Trump transition officials said the president-elect is likely to announce his choice for secretary of state midweek. Mr. Trump has given himself time to alter course should his views change or if he concludes Mr. Tillerson couldn't win Senate confirmation.

Alternatives he has been vetting include former Central Intelligence Agency Director David Petraeus, 2012 Republican presidential nominee Mitt Romney, U.S. Sen. Bob Corker (R., Tenn.), who heads the Senate Foreign Relations Committee, and John Bolton, a former U.S. ambassador to the United Nations.

"It's not over, but it looks like Mr. Tillerson is certainly way out in front right now," said U.S. Rep. Dana Rohrabacher (R., Calif.), who also had discussions with Trump transition officials about becoming secretary of state.

No Senate Republicans have yet said they would vote against Mr. Tillerson. Mr. Corker said in a tweet Saturday that the CEO is "a very impressive individual."

Still, a number of senators expressed reservations. On Tuesday, another member of the Foreign Relations Committee, Sen. Marco Rubio (R., Fla.), said he had "serious concerns" about Mr. Trump's selection of Mr. Tillerson to be secretary of state.

Mr. Rubio said the Exxon Mobil CEO "is a respected businessman," but the senator noted he had broader questions about whether Mr. Tillerson was the right person for the job. Two days earlier, Mr. Rubio said in a tweet that "being a 'friend of Vladimir' is not an attribute I am hoping for" in the next secretary of state.

The U.S. and its allies imposed sanctions two years ago on Russia after the country's invasion of Crimea and its conflicts with Ukraine.

Importantly, Mr. Rubio didn't say Tuesday that he would oppose Mr. Tillerson, only that he would "do my part to ensure he receives a full and fair but also thorough hearing before the Senate Foreign Relations Committee."

Exxon has spent years lobbying the State Department on trade and energy issues, including hydraulic fracturing and U.S. relations with Russia. In 2014, the company lobbied the department on a bill that sought to broaden the U.S. economic sanctions, according to federal lobbying disclosures. The bill didn't pass.

In a Securities and Exchange Commission filing that year, Exxon said those sanctions were costing the company $1 billion.

Exxon declined to comment on Mr. Tillerson or his ties to Russia.

Mr. Tillerson is set to retire from Exxon next year. His appointment would still generate the possibility of conflicts of interest because of his financial stake in the company, which explores for oil and gas on six of the world's seven continents and has operations in more than 50 countries. He owns Exxon shares worth $151 million, according a recent securities filing, and many of those shares aren't scheduled to vest for almost a decade.

Mr. Tillerson has known Mr. Putin since he represented Exxon's interests in Russia during the regime of Boris Yeltsin. In a sign of the close relationship, the Kremlin bestowed the country's Order of Friendship decoration on Mr. Tillerson after he struck a 2011 deal that gave Exxon access to prized Arctic resources and allowed Russia state oil company OAO Rosneft to invest in Exxon concessions around the world.

Mr. Tillerson's past opposition to sanctions on Russia is likely to trigger blowback among Senate Republicans, many of whom have rejected Mr. Trump's more conciliatory stance toward the country and its president.

Mr. Tillerson spoke in opposition to the sanctions on Russia at Exxon's annual meeting in 2014, after implementation of the company's 2011 deal with Russia had been blocked by the sanctions.

Michael McFaul, who served as U.S. ambassador to Russia in the Obama administration, said on Sunday sanctions were imposed because of Russia's intervention in Ukraine and should only be lifted if Moscow meets certain conditions.

"I worry that because of his [Tillerson's] previous relationship with these people...that he would have a particular perspective on that issue," he said.

Because of a rules change pushed through by Senate Democrats in November 2013, most presidential nominees can be confirmed with a simple majority, or 51 votes when all senators are present. Previously, nominees needed 60 votes to clear procedural hurdles.

Republicans will hold 52 seats in the Senate next year, giving them little room for internal dissension over Mr. Trump's nominees. The GOP can effectively lose no more than two votes, if all Democrats oppose a nominee, since Vice President-elect Mike Pence could cast a tiebreaking vote.

In a push that could make the margin even narrower, Democrats are urging Sen. Jeff Sessions (R., Ala.), Mr. Trump's nominee for attorney general, to recuse himself from voting on potential cabinet colleagues. Mr. Sessions' staff didn't immediately respond to a request for comment.

Still, Republicans so far have treaded cautiously in opposing Mr. Trump. Last week they played down their differences with the president-elect after he called for 35% tariffs on companies that move factories out of the U.S., a move that would fly in the face of traditional GOP free-market ideology.

In 2011, Exxon lobbied the State Department on "discussions related to the Colombia, Panama and Korea Free Trade agreements, and Russia's ascension into World Trade Organization," according to the company's disclosures. That year, the WTO cleared the way to allow Russia to join, a move that opened Russian markets to foreign competitors by cutting tariffs and breaking down trade barriers.

Exxon has had a "continuous business presence" in Russia for the last two decades, according to its website.

This year, the company has lobbied the State Department largely on trade and energy issues, including an agreement that would open up closed sectors of China's economy.

Overall, Exxon spent $8.8 million on lobbying the federal government in the first three quarters of this year, making it the top lobbyist in the oil-and-gas industry, according to a Center for Responsive Politics analysis of the most recent disclosures.

The company's deals in Russia would be certain to come under scrutiny in Senate confirmation hearings. A number of Republicans have urged Mr. Trump to be wary of Russia, warning that it is trying to expand its influence in ways that run counter to U.S. interests in places such as Ukraine and Syria.

Sen. Bob Menendez of New Jersey, a senior Democrat on Foreign Relations, said the selection of Mr. Tillerson would be "guaranteeing Russia has a willing accomplice in the president's cabinet guiding our nation's foreign policy."

Mr. Tillerson, 64 years old, grew up in Texas and in 1975 joined Exxon, where he has spent his entire career. He has long been closely affiliated with Republican politicians and the Boy Scouts of America, but he has never worked in government.

While unusual, the choice of a corporate leader as secretary of state wouldn't be unprecedented. George Shultz was the executive vice president of engineering giant Bechtel before he became secretary of state under President Ronald Reagan, though Mr. Shultz had been in government in a prior administration.

Eric Morath and John D. McKinnon contributed to this article.

Write to Kristina Peterson at kristina.peterson@wsj.com , Peter Nicholas at peter.nicholas@wsj.com and Rebecca Ballhaus at Rebecca.Ballhaus@wsj.com

Related

* Trump Adds to Criticism of Companies

Credit: By Kristina Peterson, Peter Nicholas and Rebecca Ballhaus

Subject: Nominations; Bills; Sanctions; International relations; Congressional committees

Location: United States--US Russia

People: Rohrabacher, Dana Corker, Bob Petraeus, David H Romney, W Mitt Putin, Vladimir McCain, John

Company / organization: Name: Congress; NAICS: 921120; Name: Republican Party; NAICS: 813940; Name: Senate-Foreign Relations, Committee on; NAICS: 921120; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: United Nations--UN; NAICS: 928120; Name: Central Intelligence Agency--CIA; NAICS: 928110, 928120; Name: Fox News Channel; NAICS: 515120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 13, 2016

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York , N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1848113096

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848113096?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Board to Meet on 'Transition' After Tillerson Nomination; Board congratulates Tillerson after being nominated by Trump as next secretary of state

Author: Molinski, Dan

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Dec 2016: n/a.

ProQuest document link

Abstract:

"The board of directors of Exxon Mobil Corporation congratulates Rex W. Tillerson, chairman and chief executive officer, on his nomination for the position of U.S. secretary of state," said Suzanne McCarron, Exxon's vice president of public and government affairs, according to an email from the company.

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Exxon Mobil Corp.'s board of directors sent well wishes Tuesday to the oil company's chief executive, Rex Tillerson, who has been chosen by President-elect Donald Trump to be the next secretary of state .

"The board of directors of Exxon Mobil Corporation congratulates Rex W. Tillerson, chairman and chief executive officer, on his nomination for the position of U.S. secretary of state," said Suzanne McCarron, Exxon's vice president of public and government affairs, according to an email from the company. "The board will be meeting shortly regarding transition."

Earlier Tuesday on the social media site Twitter, Mr. Trump confirmed he chose Tillerson, calling him "one of the truly great business leaders of the world." In a follow-up tweet , Mr. Trump said "the thing I like best about Rex Tillerson is that he has vast experience at dealing successfully with all types of foreign governments."

Write to Dan Molinski at Dan.Molinski@wsj.com

Read More

* Deals With Putin Helped Fuel Rise of Rex Tillerson at Exxon

* Tillerson's New U.S. Diplomatic Role Sparks Alarm...and Praise

* Trump Chooses Exxon Mobil CEO Rex Tillerson as Secretary of State

* Exxon CEO Rex Tillerson Faces Senate Dissent as Potential State Pick

Credit: By Dan Molinski

Subject: Chief executive officers; Social networks

Location: United States--US

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 13, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1848113098

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

With Tillerson Tapped for Cabinet, Darren Woods Likely to Lead Exxon; Next leader of oil and gas giant will need to navigate tough business and political obstacles

Author: Olson, Bradley; Cook, Lynn

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Dec 2016: n/a.

ProQuest document link

Abstract:

The appointment of a major American chief executive to a cabinet post isn't without precedent, according to historians, who point to former Secretary of Defense Robert McNamara, a former president of Ford Motor Co., and former Secretary of Defense Charles Wilson, a former chief executive of General Motors Co. Mr. Wilson's stock holdings in GM became a point of conflict during confirmation hearings in 1953, during which he famously told members of Congress he hadn't seen any conflict because he thought that "what was good for our country was good for General Motors, and vice versa."

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Corrections & Amplifications:

Rex Tillerson is the CEO of Exxon Mobil. A caption in an earlier version of this article incorrectly spelled the company name as Exxon Mobile. (Dec. 13)

President-elect Donald Trump's selection of Rex Tillerson as his secretary of state complicates the challenges facing Exxon Mobil Corp., which now must speed a transition to a new leader while managing the intense scrutiny Mr. Tillerson's new public role could bring to the oil and gas giant.

While the U.S. hasn't seen a chief executive as powerful as Mr. Tillerson go straight from the boardroom to a presidential cabinet in decades, the election in 2000 of former Vice President Dick Cheney, a former Halliburton Co. chief executive, provides a recent parallel.

Halliburton became a political lightning rod after the U.S.-led invasion of Iraq in 2003, when the company won billions in contracts to work Iraq oil fields and support the U.S. military. A Halliburton spokeswoman declined to comment Tuesday.

Exxon could face similar tests as Mr. Tillerson leads a Trump diplomatic team that will make decisions on such foreign policy issues as sanctions on Russia, human-rights abuses in resource-rich countries and climate change, experts said.

Although Exxon hasn't formally announced a successor to Mr. Tillerson, Darren Woods, 51 years old, emerged as Mr. Tillerson's heir apparent last December when he was appointed president of the company and took a seat on the board.

Succession planning is serious business at Exxon, and Mr. Tillerson, chairman and chief executive since 2006, is supposed to retire in March when he turns 65, according to company rules.

"The board of directors of Exxon Mobil Corporation congratulates Rex W. Tillerson, chairman and chief executive officer, on his nomination for the position of U.S. secretary of state," Suzanne McCarron, Exxon's vice president of public and government affairs, said Tuesday. "The board will be meeting shortly regarding transition."

Exxon declined further comment.

Far from worried, investors have reacted with glee to news of Mr. Tillerson's secretary of state candidacy. Exxon shares rose 2% to $92.80 Tuesday as the president-elect officially announced Mr. Tillerson as his choice.

"This won't faze the company in the least as their succession planning is among the most rigorous in the industry," said Les Csorba, an executive recruiter at Heidrick & Struggles International Inc. in Houston who also helped manage national security appointments in the administration of President George H.W. Bush.

The appointment of a major American chief executive to a cabinet post isn't without precedent, according to historians, who point to former Secretary of Defense Robert McNamara, a former president of Ford Motor Co., and former Secretary of Defense Charles Wilson, a former chief executive of General Motors Co.

Mr. Wilson's stock holdings in GM became a point of conflict during confirmation hearings in 1953, during which he famously told members of Congress he hadn't seen any conflict because he thought that "what was good for our country was good for General Motors, and vice versa."

The business background of those appointees was less controversial because American corporations occupied a different place in American society at that time.

"McNamara himself, as the principal architect of an unsuccessful Vietnam War strategy, may have elevated public and political skepticism about CEOs in Cabinet positions," said Donald Hafner, a professor of history at Boston College.

Exxon, by contrast, now confronts some of the biggest political and business obstacles it has faced since its origins as part of the 1911 breakup of John D. Rockefeller's Standard Oil Co.

Exxon has struggled to find enough new oil and gas after three big bets made by Mr. Tillerson have failed thus far to deliver on their promise. It suffered a serious setback when the U.S. and its allies imposed economic sanctions on Russia in 2014, after Mr. Tillerson brokered a major Arctic drilling deal with the country in 2011.

The company also poured billions into Canada's oil sands over the last decade but in October told investors it recognized as many as 4.6 billion barrels of future reserves, primarily in Canada, may no longer be profitable to produce at today's prices.

And it got into the shale drilling boom late with a purchase of XTO Energy Inc. valued at $31 billion when it was announced in 2009.

Earlier this year, Exxon lost the sterling triple-A credit rating from Standard & Poor's it had held since before the Great Depression. Last year, it failed to replace all of the oil and gas reserves that it produced for the first time in more than two decades.

If the Trump administration lifts sanctions on Russia and Exxon reboots its energy partnership with Rosneft, the company stands to reap billions in profits.

Back in the U.S., however, Exxon is embroiled in several disputes, including an investigation opened earlier this year by the U.S. Securities and Exchange Commission over how Exxon accounts for its oil and gas reserves and communicates with investors about climate change.

Exxon is also in a protracted legal battle with state attorneys general in New York, Massachusetts and elsewhere over investigations that Democratic officials have started into Exxon's history of climate research and how it discloses information about the business risk of climate change in its reports to shareholders and regulators.

While Mr. Woods's expected ascension to the chief executive role isn't yet official, and still must be approved by the company's board, Exxon has consistently promoted from within its ranks, elevating future leaders to the role of president before they take over.

Mr. Woods is a 24-year Exxon employee with an engineering degree from Texas A&M University. He rose up the ranks in the oil giant's vast refining and chemical business. Mr. Tillerson had moved up through the company's exploration and oil-pumping side.

While executives at the company's headquarters in Irving, Texas take pride in taking a long view of their businesses, Mr. Tillerson's successor will have to steer Exxon through short-term headwinds as fierce as any since the Exxon Valdez oil spill in Alaska in 1989.

Mr. Woods couldn't be reached for comment Tuesday.

Christopher M. Matthews contributed to this article.

Write to Bradley Olson at Bradley.Olson@wsj.com and Lynn Cook at lynn.cook@wsj.com

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* Trump Picks Exxon Chief for State Department

* Deals With Putin Helped Fuel Tillerson's Rise at Exxon

Credit: By Bradley Olson and Lynn Cook

Subject: Succession planning; Chief executive officers; Presidents; Investments

Location: United States--US Russia Iraq

People: Bush, George H W Cheney, Richard B

Company / organization: Name: Heidrick & Struggles International Inc; NAICS: 541612; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Boston College; NAICS: 611310

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 13, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1848137901

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

How Rex Tillerson, a Late Entry to Be Secretary of State, Got Donald Trump's Nod; Exxon CEO wasn't on anyone's radar until a former defense secretary suggested him to the president-elect

Author: Nicholas, Peter; Bender, Michael C; Lee, Carol E

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.

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Abstract: None available.

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President-elect Donald Trump was three weeks into his search for a secretary of state when former Defense Secretary Robert Gates arrived at his New York office for a private talk.

The cabinet selection was bedeviling Mr. Trump. His first instinct to pick a loyal insider was undercut by reports of the prospective nominee's overseas money-making ventures, and his flirtation with a known political adversary was being hammered by his own supporters. What if, he asked Mr. Gates, he wiped the slate clean and started over?

The former Pentagon chief offered a name that was on no one's radar, and one whose company happened to be one of his clients: Exxon Mobil Corp. head Rex Tillerson.

Four days later, Mr. Trump held his first interview with Mr. Tillerson and was "blown away," a transition official said, adding: "That sort of reshuffled the deck."

On Tuesday, Mr. Trump ended a messy five-week search for the plum cabinet post, selecting Mr. Tillerson from upwards of 10 candidates who included campaign backers, foreign-policy experts and established politicians.

Mr. Trump's handling of the search offers an early window into an executive style that leaves even his own advisers guessing at what he will do right up until the last moment. He also went ahead with the Tillerson pick in the face of bipartisan resistance from senators who are wary of the oil executive's business ties to Russian President Vladimir Putin, which run deep enough that Mr. Tillerson was named to Russia's Order of Friendship in 2013.

As those concerns were aired publicly on Monday, Mr. Trump became even more determined to buck the establishment and select Mr. Tillerson, a transition official said.

"It's important to know that the one thing Mr. Trump understands is that he's in charge," said Ed Brookover, a former political adviser to Mr. Trump. "There can be all sorts of speculation and talking about what's going on, but a decision isn't made until he makes it."

The upshot, though, is that winning Senate confirmation might not be easy, and Mr. Trump may need to spend considerable political capital to install Mr. Tillerson in the job.

From the outset, the search and selection of the next secretary of state took on a life of its own, even as the Trump transition team set a brisk pace for filling other high-level positions.

Initially, former New York Mayor Rudy Giuliani emerged as what seemed to be the prohibitive favorite. He topped the short list of candidates that Trump advisers handed the president-elect on Nov. 9, the day after the election. Mr. Giuliani had stood by Mr. Trump during the bleakest moments of his candidacy and was a frequent visitor to Trump Tower during the transition.

At a Wall Street Journal CEO Council event on Nov. 14, Mr. Giuliani privately told attendees he would land the job, and he talked up his security contracts and paid speech-making overseas as part of his résumé. On stage, he was asked who would be a better secretary of state than John Bolton, a former diplomat also considered for the post. Mr. Giuliani replied, "Maybe me, I don't know."

But Mr. Trump wasn't completely sold. One transition official said the president-elect was concerned Mr. Giuliani, 72 years old, might not have the necessary stamina for a job.

"My stamina is unbelievable," Mr. Giuliani said in an interview on Tuesday.

Meanwhile, other unexpected candidates began to emerge. Chief among them was Mitt Romney, the 2012 Republican presidential nominee who had become the primary voice of the "never Trump" corner during the primaries.

The New York businessman met Mr. Romney at his golf club in New Jersey on Nov. 19 at the suggestion of his top strategic adviser, Steve Bannon, who wanted to show party unity before the media cameras.

But the meeting went so well that Mr. Romney emerged as the front-runner for the job, to the chagrin of Mr. Bannon, who had run Breitbart News, a website that was critical of Mr. Romney. By Nov. 22, three days after that first meeting, Mr. Trump told associates that he was 95% of the way to picking Mr. Romney.

Two days later, Trump senior adviser Kellyanne Conway tweeted that she was getting a "deluge" of comments about Mr. Romney's prospective appointment from Trump loyalists who hadn't forgiven him for his remarks during the campaign, including calling Mr. Trump "a phony, a fraud."

Ms. Conway, who took her warnings onto the Sunday morning news shows, wasn't freelancing. People familiar with the matter said she was acting with Mr. Trump's approval.

Mr. Romney played his cards close, making personal appeals to his allies to remain silent about the process in deference to Mr. Trump, according to people familiar with Mr. Romney's planning. The former Massachusetts governor spent the weekends with his grandchildren, and avoided a public fight with transition officials that might give Mr. Trump an easy excuse to scuttle his candidacy. Mr. Romney declined requests for comment.

Mr. Trump had another meeting with Mr. Romney on Nov. 29. He invited the press to take pictures of a private dinner in the dining room of the Trump International Hotel & Tower in midtown Manhattan. Afterward, Mr. Romney offered a sort of mea culpa, commending Mr. Trump for "bringing people together" following the election.

On the same day that Mr. Trump and Mr. Romney were served frog legs in the New York restaurant, Mr. Giuliani told Mr. Trump he was pulling back his name from consideration. Mr. Trump wasn't ready to limit his options, though, and the next day Trump aides told reporters Mr. Giuliani was still one of four finalists for the job.

Three days later, Mr. Gates arrived at Trump Tower for his private meeting. That discussion was soon followed with a call to former Secretary of State Condoleezza Rice, in which Mr. Trump talked to her about Mr. Tillerson and other issues, a person familiar with the matter said. In a meeting with Mr. Trump and Vice President-elect Mike Pence, she talked up Mr. Tillerson as a top executive and as the "best in that breed."

Both Ms. Rice and Mr. Gates are principals in the firm RiceHadleyGates, an international strategic-consulting firm. Mr. Gates said one of the firm's clients is Exxon Mobil. In an interview, Mr. Gates said Exxon is only "one of many clients of ours," and that he recommended Mr. Tillerson because of a personal relationship rooted in leadership roles they have both held in the Boy Scouts of America.

He described talking with Mr. Tillerson in recent years after scouting events, and "over drinks and a cigar" talking about world affairs.

Over this past weekend, Mr. Trump seemed to have made up his mind that he wanted to anoint Mr. Tillerson. "Stay tuned," he tweeted. "I'm getting very close," Mr. Trump told Fox News's Chris Wallace.

Although his advisers said he had settled on Mr. Tillerson, some worried that his mind could change. One transition adviser said he had seen instances where Mr. Trump changed course based on his latest conversation.

One of his last phone calls Monday night was to Ms. Rice, who saw in the business executive a figure who was already comfortable moving in a world that included presidents and kings.

On Monday night, as word of the Tillerson pick began to leak, Mr. Romney posted a note on Facebook conceding he was out of the running, saying it was "an honor" to have been considered for the post.

Bradley Olson and Mara Gay contributed to this article.

Rex Tillerson

Exxon Mobil CEO

* Age: 64.

* Résumé: Mr. Tillerson, who grew up in Texas, joined Exxon in 1975. He has spent his entire career so far at the company. Mr. Tillerson has long been closely affiliated with Republican politicians and the Boy Scouts of America, but he has never worked in government.

* Possible hurdle: With Exxon's long history of business in Russia, Mr. Tillerson's nomination faces potential bipartisan resistance in the Senate over his ties to Russian President Vladimir Putin. In 2013, the Kremlin bestowed the country's Order of Friendship decoration on Mr. Tillerson.

Read More on Capital Journal

Capital Journal is WSJ.com's home for politics, policy and national security news.

* Confirmation Battle Looms for Tillerson

* Donald Trump Chooses Exxon Mobil CEO Rex Tillerson as Secretary of State

* Trump's Pledge to Loosen Regulations on Businesses Is a Heavy Lift

* Tillerson's New U.S. Diplomatic Role Sparks Alarm...and Praise

* Deals With Putin Helped Fuel Rise of Rex Tillerson at Exxon

Credit: By Peter Nicholas, Michael C. Bender and Carol E. Lee

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 14, 2016

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1848275053

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Last updated: 2017-11-23

Database: The Wall Street Journal

Confirmation Battle Looms for Rex Tillerson as Secretary of State; Some Republican senators question the Exxon Mobil CEO's closeness to Russian leaders

Author: Tau, Byron

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.

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Abstract:

WASHINGTON--Donald Trump pushed ahead Tuesday with his controversial pick for secretary of state, Exxon Mobil Corp. chief Rex Tillerson, setting up a likely battle with senators--including some Republicans--who have raised questions about his closeness to Russian leaders.

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WASHINGTON--Donald Trump pushed ahead Tuesday with his controversial pick for secretary of state, Exxon Mobil Corp. chief Rex Tillerson, setting up a likely battle with senators--including some Republicans--who have raised questions about his closeness to Russian leaders.

Republican Sens. Marco Rubio, John McCain and Lindsey Graham, influential voices in the chamber on foreign-policy issues, want to use the confirmation process to explore Mr. Tillerson's relationship with Russian President Vladimir Putin. Mr. Rubio went the furthest, saying Tuesday he had "serious concerns" about the nominee.

The worries from Republicans signaled Mr. Tillerson could face trouble getting confirmed in the Senate, where he could lose no more than two GOP votes if all Democrats oppose him.

Mr. Tillerson was officially unveiled as the president-elect's choice Tuesday morning after a long interview process that featured multiple candidates, including former New York City Mayor Rudy Giuliani and former Massachusetts Gov. Mitt Romney. Mr. Trump called the executive's life story the "embodiment of the American dream" and suggested his business background would empower Mr. Tillerson to cut deals as America's top diplomat.

Senate Majority Leader Mitch McConnell (R., Ky.) praised Mr. Tillerson for his "forward-looking strategic planning, managing international partnerships and risk, and focused leadership around the world." He played down concerns over Mr. Tillerson's ties to Russia by saying he was confident he "will face each problem head on with American interests and security as his top priority."

Mr. Tillerson also has the support of former Secretary of State Condoleezza Rice, former Defense Secretary Bob Gates and former national security adviser Stephen Hadley, the Trump team noted. The three are partners in an international consulting firm that has worked for Exxon.

The Foreign Relations Committee chairman, Bob Corker (R., Tenn.), who was himself a candidate for the State Department post, said Mr. Tillerson is "a very impressive individual and has an extraordinary working knowledge of the world."

Tom Pritzker, a billionaire Chicago businessman who serves with Mr. Tillerson on the board of the bipartisan Center for Strategic and International Studies in Washington, described Mr. Tillerson as a "brilliant choice."

"He will be totally focused on U.S. national interests," Mr. Pritzker said. "It's a mistake to confuse knowing Russia with being pro-Russia. Rex knows Russia, which means he's ahead on the learning curve."

Transition officials suggested some centrist Democrats might back Mr. Tillerson given his position on climate change, which he has said is a global problem that warrants action.

Sen. Chris Coons (D., Del.) a member of the Foreign Relations panel, expressed concerns over what he viewed as Mr. Tillerson's potential conflicts, but said he was "intrigued" by reports the nominee had supported a carbon tax. "I didn't expect that from an oil-and-gas executive," he said.

Mr. Coons added that he was skeptical that would shape the Trump administration's climate policy, given that Mr. Trump last week tapped climate skeptic Oklahoma Attorney General Scott Pruitt to lead the Environmental Protection Agency.

Under Mr. Tillerson's leadership, Exxon has embraced a carbon tax as the best policy to address climate change, and this year the company stepped up its lobbying of fellow U.S. oil-and-gas companies to back a carbon tax over no climate policy at all. The oil giant also backs a global deal struck in Paris last year to cut greenhouse gas emissions.

But Russia appears to be the main concern of senators of both parties. A number of Republicans have signaled they expect confirmation hearings in the Foreign Relations Committee to focus on questions about his relationship and business dealings in Russia, as well as his opposition to U.S. sanctions against Russia. He's also likely to draw similarly tough scrutiny from many Democrats in the Senate, who plan to use the confirmation hearings as a public forum on the nomination even if they lack the votes to halt it.

Under his leadership, Exxon signed a joint agreement with the state-owned Russian oil company Rosneft on a drilling project. Mr. Tillerson was later awarded the Russian Order of Friendship because of the deal.

Republicans will control 52 seats in the Senate to 48 held by Democrats and the two independents who caucus with them. That means Mr. Tillerson can lose no more than two GOP votes in the Senate if all Democrats oppose him.

The Foreign Relations Committee in the most recent session had 10 Republican and nine Democratic members. The panel's composition in the next Congress is still being worked out, but it is likely Mr. Tillerson would need to offset any GOP defections with support from Democrats to win a positive confirmation recommendation from the panel.

The top Foreign Relations panel Democrat, Ben Cardin of Maryland, said he was "deeply troubled by Mr. Tillerson's vocal opposition to U.S. sanctions on Russia following its illegal invasion, occupation and annexation of Crimea, Ukraine, and his close personal relationship with Vladimir Putin."

"I also want to know more about Mr. Tillerson's worldview, because I found many of President-elect Trump's foreign-policy statements as a candidate, and now as the next president of the United States, to be disturbing at best and frightening at worst," Mr. Cardin said.

Mr. Rubio, a Florida Republican and Foreign Relations committee member, didn't say he would oppose Mr. Tillerson--only that he would "do my part to ensure he receives a full and fair but also thorough hearing."

Mr. McCain of Arizona, the Republican 2008 presidential candidate, told NPR this week he too had concerns "about what kind of business we do with a butcher, a murderer and a thug, which is exactly what Vladimir Putin is."

Mr. Graham of South Carolina said that while Mr. Tillerson was a "talented businessman," he expected "the U.S.-Russian relationship to be front and center in his confirmation process."

Other Senate Republicans also expressed reservations about Mr. Tillerson's ties to Russia--though without opposing the nomination outright.

A spokesman for Nebraska GOP Sen. Ben Sasse, who has been a vocal critic of Mr. Trump, said the senator "looks forward to diving into every nominee's record. Mr. Tillerson is a man of tremendous accomplishment, but U.S. policy toward Russia's Soviet-style aggression demands rigorous oversight."

Sen. Chuck Grassley, an Iowa Republican, warned that "both Trump and Tillerson need to know that Putin is Machiavellian," and added that Presidents Barack Obama and George W. Bush were "hoodwinked" by the Russian leader.

Mr. Trump's team described Mr. Tillerson as a self-made man and said his international business dealings should be considered an asset, not a concern. "You can see he is not only a successful businessman, but someone who really has that sort of American dream story of rags to riches," said Sean Spicer, a Trump spokesman.

Only three cabinet nominees have been rejected in the 20th century and none this century. The last time was in 1989 when former Sen. John Tower, George H.W. Bush's nominee to be defense secretary, was rejected by a Democratic Senate. In other cases, nominees have withdrawn rather than face a vote that they were certain to lose.

Damian Paletta, Kristina Peterson, Michael C. Bender, Carol E. Lee, Amy Harder and Mark Maremont contributed to this article.

Write to Byron Tau at byron.tau@wsj.com

Rex Tillerson

Exxon Mobil CEO

* Age: 64.

* Résumé: Mr. Tillerson, who grew up in Texas, joined Exxon in 1975. He has spent his entire career so far at the company. Mr. Tillerson has long been closely affiliated with Republican politicians and the Boy Scouts of America, but he has never worked in government.

* Possible hurdle: With Exxon's long history of business in Russia, Mr. Tillerson's nomination faces potential bipartisan resistance in the Senate over his ties to Russian President Vladimir Putin. In 2013, the Kremlin bestowed the country's Order of Friendship decoration on Mr. Tillerson.

Read More on Capital Journal

Capital Journal is WSJ.com's home for Trump transition news.

* How Tillerson, a Late Entry to Be Secretary of State, Got Donald Trump's Nod

* Donald Trump's Pledge to Loosen Regulations on Businesses Is a Heavy Lift

* Trump Picks Montana Congressman Ryan Zinke as Interior Secretary

* Donald Trump Chooses Exxon Mobil CEO Rex Tillerson as Secretary of State

* Tillerson's New U.S. Diplomatic Role Sparks Alarm...and Praise

* Deals With Putin Helped Fuel Rise of Rex Tillerson at Exxon

Credit: By Byron Tau

Subject: Hearings & confirmations; Nominations; Political appointments; Carbon; International relations; Environmental policy; Climate change; Leadership; Natural gas utilities; Environmental tax

Location: Russia United States--US

People: Corker, Bob Hadley, Stephen J Rice, Condoleezza McConnell, Mitch Romney, W Mitt Giuliani, Rudolph W Graham, Lindsey Putin, Vladimir McCain, John

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 14, 2016

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1848275732

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

U.S. News: New Exxon Leadership Would Face Tough Challenges

Author: Olson, Bradley; Cook, Lynn

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]14 Dec 2016: A.6.

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Abstract:

"The board of directors of Exxon Mobil Corporation congratulates Rex W. Tillerson, chairman and chief executive officer, on his nomination for the position of U.S. secretary of state," Suzanne McCarron, Exxon's vice president of public and government affairs, said Tuesday.

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President-elect Donald Trump's selection of Rex Tillerson as his secretary of state complicates the challenges facing Exxon Mobil Corp., which now must speed a transition to a new leader while managing the intense scrutiny Mr. Tillerson's new public role could bring to the oil and gas giant.

While the U.S. hasn't seen a chief executive as powerful as Mr. Tillerson go straight from the boardroom to a presidential cabinet in decades, the election in 2000 of former Vice President Dick Cheney, a former Halliburton Co. chief executive, provides a recent parallel.

Halliburton became a political lightning rod after the U.S.-led invasion of Iraq in 2003, when the company won billions in contracts to work Iraq oil fields and support the U.S. military. A Halliburton spokeswoman declined to comment Tuesday.

Exxon could face similar tests as Mr. Tillerson leads a Trump diplomatic team that will make decisions on such foreign policy issues as sanctions on Russia, human-rights abuses in resource-rich countries and climate change, experts said.

Although Exxon hasn't formally announced a successor to Mr. Tillerson, Darren Woods, 51 years old, emerged as Mr. Tillerson's heir apparent last December when he was appointed president of the company and took a seat on the board.

Succession planning is serious business at Exxon, and Mr. Tillerson, chairman and chief executive since 2006, is supposed to retire in March when he turns 65, according to company rules.

"The board of directors of Exxon Mobil Corporation congratulates Rex W. Tillerson, chairman and chief executive officer, on his nomination for the position of U.S. secretary of state," Suzanne McCarron, Exxon's vice president of public and government affairs, said Tuesday. "The board will be meeting shortly regarding transition."

Exxon declined to comment further.

Far from worried, investors have reacted with glee to news of Mr. Tillerson's secretary of state candidacy. Exxon shares rose 2% to $92.80 Tuesday as the president-elect officially announced Mr. Tillerson as his choice.

"This won't faze the company in the least, as their succession planning is among the most rigorous in the industry," said Les Csorba, an executive recruiter at Heidrick & Struggles International Inc. in Houston who also helped manage national security appointments in the administration of President George H.W. Bush.

Exxon now confronts some of the biggest political and business obstacles it has faced since its origins as part of the 1911 breakup of John D. Rockefeller's Standard Oil Co.

Exxon has struggled to find enough new oil and gas after three big bets made by Mr. Tillerson have failed thus far to deliver on their promise. It suffered a serious setback when the U.S. and its allies imposed economic sanctions on Russia in 2014, after Mr. Tillerson brokered a major Arctic drilling deal with the country in 2011.

The company also poured billions into Canada's oil sands over the past decade, but in October it told investors it recognized that as many as 4.6 billion barrels of future reserves, primarily in Canada, might no longer be profitable to produce at today's prices.

And it got into the shale drilling boom late with a purchase of XTO Energy Inc. valued at $31 billion when it was announced in 2009.

Earlier this year, Exxon lost the sterling triple-A credit rating from Standard & Poor's it had held since before the Great Depression.

Last year, it failed to replace all of the oil and gas reserves that it produced for the first time in more than two decades.

Exxon is also embroiled in several disputes, including an investigation opened earlier this year by the U.S. Securities and Exchange Commission over how Exxon accounts for its oil and gas reserves and communicates with investors about climate change.

---

Christopher M. Matthews contributed to this article.

---

Company Known

For Succession Plans

Exxon Mobil Corp. has among the most rigorous CEO succession processes in the U.S. corporate world, experts say.

Darren Woods, 51, is widely expected to take over for Chief Executive Rex Tillerson as he leaves the company for a potential appointment to be the next U.S. secretary of state.

While the expected ascension of Mr. Woods isn't yet official, and still must be approved by the company's board, Exxon has consistently promoted from within its ranks, elevating future leaders to the role of president before they take over.

Mr. Woods is a 24-year Exxon employee with an engineering degree from Texas A&M University. He rose up the ranks in the oil giant's vast refining and chemical business. Mr. Tillerson had moved up through the company's exploration and oil-pumping side.

While executives at the company's headquarters in Irving, Texas, are proud of taking a long view, Mr. Tillerson's successor will have to steer Exxon through short-term headwinds. Mr. Woods couldn't be reached for comment Tuesday.

-- Bradley Olson and Lynn Cook

Credit: By Bradley Olson and Lynn Cook

Subject: Chief executive officers; Succession planning

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.6

Publication year: 2016

Publication date: Dec 14, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

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Last updated: 2017-11-23

Database: The Wall Street Journal

Global Deals That Made Exxon's CEO Now Pose Big Test; Secretary of state pick's ties to Putin and others with strained U.S. relations already are under scrutiny; 'I'm a businessman'

Author: Scheck, Justin; Marson, James; Paletta, Damian

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.

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Abstract:

Other prominent cabinet secretaries with top corporate experience include former defense secretaries Caspar Weinberger, who also worked at Bechtel, and Robert McNamara, who served as president of Ford Motor Co. Before becoming George W. Bush's vice president, Dick Cheney spent five years as the chief executive of Halliburton Co. Mr. Tillerson joined Exxon in 1975.

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Rex Tillerson rose to the top of Exxon Mobil Corp. partly by negotiating a deal with Russia's Vladimir Putin to kick-start an oil project on the Pacific Ocean island of Sakhalin, which had been tied up in bureaucratic knots for years.

He also led Exxon into Iraq's semiautonomous Kurdistan region against the wishes of Baghdad and the State Department, and kept pumping oil in Chad after international oil profits were being used to support the autocratic government's military operations.

In many ways, Mr. Tillerson's record since becoming chief executive in 2006 makes him the international energy equivalent of President-elect Donald Trump's claim to fame in real estate: a shrewd, opportunistic businessman who amassed daring investments and valuable assets around the world.

Those same qualifications will also pose a test for Mr. Tillerson's nomination by the president-elect as secretary of state . The Exxon CEO's dealings outside the U.S., particularly in Russia, will be a feature of his confirmation review, testing whether Mr. Trump's affection for corporate chieftains as cabinet chiefs will fly in the world of international diplomacy.

Mr. Trump has praised Mr. Tillerson, 64 years old, for having "relationships with leaders all over the world [that are] second to none." Other prominent supporters acclaim his wide knowledge of the world and note his experience outside corporate America, including as president of the Boy Scouts of America.

"It's a mistake to pigeonhole him as another CEO with a very narrow background," said former Defense Secretary Robert Gates in an interview. Mr. Gates, a principal in a consulting firm that has Exxon as a client, said he recommended Mr. Trump consider Mr. Tillerson for the job.

His relationship with Russia's president which stretches back to 1999, is already facing scrutiny from lawmakers in the Senate who will oversee his confirmation hearings next month.

Members of both parties are also pushing for an investigation into Russia's alleged hacking and its impact on the U.S. election. U.S. officials and European leaders have accused Russia of illegally annexing part of Ukraine and supporting bombing campaigns in Syria that have killed thousands of civilians. Mr. Trump has said he would pursue less confrontation with Russia on the issues.

"The real issue with Rex Tillerson's candidacy is going to be about Donald Trump's unusual views of Russia," said R. Nicholas Burns, a career foreign service officer who rose to be a top senior State Department official in the George W. Bush administration. "Will the Trump administration, the president he serves have a rational, tough-minded approach to Russia? Right now, I don't see it."

Testing his skill set

A key test of Mr. Tillerson's skill set will be how well he can translate his business acumen to international diplomacy.

"Can he step out of the Exxon Mobil persona and then pursue a whole bunch of interests with interlocutors who don't share our interests?" said Steven Pifer, a retired foreign service officer who spent 25 years at the State Department and served as U.S. ambassador to Ukraine. Not enough was known about Mr. Tillerson's views on foreign policy to form a view, Mr. Pifer added.

As secretary of state, "you are a juggler, you are a diplomat, you are a cage fighter, and you need to be bureaucrat par excellence or the permanent bureaucracy of the foreign service will destroy you," said Danielle Pletka, a senior vice president at the conservative-leaning American Enterprise Institute.

While Mr. Tillerson is unusual for his lack of prior government experience, other business leaders have moved into cabinet posts and other high-ranking government positions.

George Shultz served for seven years as secretary of state under President Ronald Reagan after rising to president of international engineering firm Bechtel Inc. Prior to Bechtel, Mr. Shultz spent five years in several top Washington posts, including as Treasury secretary.

Other prominent cabinet secretaries with top corporate experience include former defense secretaries Caspar Weinberger, who also worked at Bechtel, and Robert McNamara, who served as president of Ford Motor Co. Before becoming George W. Bush's vice president, Dick Cheney spent five years as the chief executive of Halliburton Co.

Mr. Tillerson joined Exxon in 1975. As he climbed the corporate ladder, he faced a common challenge at big, multinational oil companies: build relationships with leaders controlling chunks of the world's fossil-fuel wealth.

Some of those leaders were strongmen on the wrong side of the U.S. government. Along with Mr. Putin, Mr. Tillerson has done business with dictators in Angola and Chad and talked oil with former Libyan leader Moammar Gadhafi.

Under Mr. Tillerson, Exxon joined with companies owned by Saudi Arabia, a longtime U.S. ally that has been a recent target of American politicians.

It's his work in Russia that has attracted the most attention in the Senate, particularly from defense hawks who worry Mr. Putin will continue trying to thwart U.S. interests.

"I have a very close relationship with [Mr. Putin]," Mr. Tillerson told students at the University of Texas, his alma mater, in February. "I don't agree with everything he's doing. I don't agree with everything a lot of leaders are doing. But he understands that I am a businessman. And I have invested a lot of money, our company has invested a lot of money, in Russia, very successfully."

Mr. Tillerson often used diplomacy of sorts to make international oil deals, but those were on behalf of Exxon and its shareholders.

"I'm not here to represent the United States government's interest," he told his Texas audience in recounting his conversations with foreign officials. "I'm not here to defend it nor am I here to criticize it. That's not what I do--I'm a businessman," Mr. Tillerson said.

That has meant operating in ways not always aligned with U.S. interests and sometimes without heeding the requests of local U.S. embassies, according to two former U.S. diplomats who worked in countries where Exxon operated.

Tough negotiations

Exxon has been more direct and more demanding with foreign leaders than other companies, according to a former executive at a rival who was a partner with Exxon in joint ventures.

In China, by contrast, a country that will be a big part of Mr. Tillerson's portfolio if he is confirmed, his contact with government leaders has been limited to building a large refinery and petrochemical facility in Fujian province.

"I don't think he's very well known to the Chinese government leaders," said Victor Gao, a former top executive at state-owned oil company Cnooc Ltd.

In Russia, Mr. Tillerson sometimes worked on deals directly with Mr. Putin. The Exxon executive was a rising star at the company at the end of the 1990s when he handled the politically and technologically complex project on Sakhalin , a $17 billion development to drill for oil.

Mr. Putin became Russian prime minister in 1999 and has run the country, either as president or prime minister, ever since. Mr. Tillerson's success, including on the Sakhalin deal, helped him catapult past other executives to lead Exxon.

As the project was progressing in the early 2000s, Mr. Putin's Kremlin was becoming more assertive in its dealings with Western oil companies, which some felt had received too-favorable deals in the 1990s.

Mr. Tillerson navigated that situation in part by keeping state-controlled PAO Rosneft as a partner in the project. Rosneft has since grown to become one of the world's largest publicly traded oil producers.

Mr. Tillerson teamed up again with Rosneft in 2011 as global majors were jostling for a piece of potentially huge resources in the Russian Arctic.

BP PLC Chief Executive Robert Dudley was trying to secure plum Arctic fields for the U.K.-based oil company, but his partners in another Russian venture, TNK-BP, managed to block the deal. Mr. Tillerson swooped in.

At a June 2012 meeting with Mr. Putin, Mr. Tillerson said Exxon's Arctic deal enhanced U.S.-Russian ties. "I agree, as you point out, that nothing strengthens relationships between countries better than business enterprise," a Kremlin transcript quoted him saying.

An award from Putin

The next year, Mr. Putin awarded Mr. Tillerson Russia's Order of Friendship for his work.

Exxon suffered a setback in its efforts to profit from its Russia dealings after the Kremlin annexed Crimea, at the time part of Ukraine, and ties deteriorated between the U.S. and Russia.

After Moscow's military intervened in eastern Ukraine, the Obama administration added more sanctions, including on Russian energy companies such as Rosneft, forcing a halt to drilling in the Arctic.

William W. George, an Exxon board member until last year, said Mr. Tillerson opposed the U.S. sanctions . Yet "Rex didn't fight it,'' he said. "He didn't go to court.''

Mr. George, a former chief executive of Medtronic Inc. who now teaches leadership as a senior fellow at Harvard Business School, said Mr. Tillerson's extensive dealings with foreign leaders like Mr. Putin should help him as secretary of state.

"He would never put Putin's interests ahead of Exxon's when I was there,'' said Mr. George.

Mr. Tillerson's Russian oil diplomacy was on display during a visit to Moscow in June, when he was asked about the economic sanctions that have blocked Exxon from reaping the benefits of the Arctic-drilling agreement and partnership that he helped broker in 2011.

Referring to Igor Sechin, the head of Rosneft and a close ally of Mr. Putin, Mr. Tillerson said: "As to the sanctions questions, I'll use the same approach that my friend Mr. Sechin took. That's a question for the government. So if there's a U.S. government official here who'd like to respond, I'm happy to toss it to them."

Mr. Sechin burst into laughter and gave Mr. Tillerson a thumbs-up.

Russell Gold, Joann S. Lublin, Brian Spegele and Joe Parkinson contributed to this article.

Write to Justin Scheck at justin.scheck@wsj.com , James Marson at james.marson@wsj.com and Damian Paletta at damian.paletta@wsj.com

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* Confirmation Battle Looms for Rex Tillerson as Secretary of State

* How Tillerson, a Late Entry to Be Secretary of State, Got Donald Trump's Nod

* Trump Picks Exxon Chief for State

* Darren Woods Likely to Take Over Helm at Exxon

* Tillerson's Role Sparks Alarm and Praise

* Trump: Sons, Executives to Run Business

Credit: Justin Scheck, James Marson, Damian Paletta

Subject: Presidents; Engineering firms; Political campaigns; Diplomacy

Location: Chad Russia United States--US

People: Bush, George W

Company / organization: Name: Boy Scouts of America; NAICS: 813410

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 14, 2016

Section: World

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1848452870

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Copyright: (c) 2016 Dow Jones & Company , Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Global Deals That Made Exxon's CEO Now Pose Big Test

Author: Scheck, Justin; Marson, James; Paletta, Damian

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]14 Dec 2016: A.1.

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Abstract:

Other prominent cabinet secretaries with top corporate experience include former defense secretaries Caspar Weinberger, who also worked at Bechtel, and Robert McNamara, who served as president of Ford Motor Co. Before becoming George W. Bush's vice president, Dick Cheney spent five years as the chief executive of Halliburton Co. Mr. Tillerson joined Exxon in 1975.

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Rex Tillerson rose to the top of Exxon Mobil Corp. partly by negotiating a deal with Russia's Vladimir Putin to kick-start an oil project on the Pacific Ocean island of Sakhalin, which had been tied up for years.

He also led Exxon into Iraq's semiautonomous Kurdistan region against the wishes of Baghdad and the State Department, and kept pumping oil in Chad after international oil profits were being used to support the autocratic government's military operations.

In many ways, Mr. Tillerson's record since becoming chief executive in 2006 makes him the international energy equivalent of President-elect Donald Trump's claim to fame in real estate: a shrewd, opportunistic businessman who amassed daring investments and valuable assets around the world.

Those same qualifications will also pose a test for Mr. Tillerson's nomination by the president-elect as secretary of state. The Exxon CEO's dealings outside the U.S., particularly in Russia, will be a feature of his confirmation review, testing whether Mr. Trump's affection for corporate chieftains as cabinet chiefs will fly in the world of international diplomacy.

Mr. Trump has praised Mr. Tillerson, 64 years old, for having "relationships with leaders all over the world [that are] second to none." Other prominent supporters acclaim his wide knowledge of the world and note his experience outside corporate America, including as president of the Boy Scouts of America.

"It's a mistake to pigeonhole him as another CEO with a very narrow background," said former Defense Secretary Robert Gates in an interview. Mr. Gates, a principal in a consulting firm that has Exxon as a client, said he recommended Mr. Trump consider Mr. Tillerson for the job.

His relationship with Russia's president which stretches back to 1999, is already facing scrutiny from lawmakers in the Senate who will oversee his confirmation hearings next month.

Members of both parties are also pushing for an investigation into Russia's alleged hacking and its impact on the U.S. election. U.S. officials and European leaders have accused Russia of illegally annexing part of Ukraine and supporting bombing campaigns in Syria that have killed thousands of civilians. Mr. Trump has said he would pursue less confrontation with Russia on the issues.

"The real issue with Rex Tillerson's candidacy is going to be about Donald Trump's unusual views of Russia," said R. Nicholas Burns, a career foreign service officer who rose to be a top senior State Department official in the George W. Bush administration. "Will the Trump administration, the president he serves have a rational, tough-minded approach to Russia? Right now, I don't see it."

A key test of Mr. Tillerson's skill set will be how well he can translate his business acumen to international diplomacy.

"Can he step out of the Exxon Mobil persona and then pursue a whole bunch of interests with interlocutors who don't share our interests?" said Steven Pifer, a retired foreign service officer who spent 25 years at the State Department and served as U.S. ambassador to Ukraine. Not enough was known about Mr. Tillerson's views on foreign policy to form a view, Mr. Pifer added.

As secretary of state, "you are a juggler, you are a diplomat, you are a cage fighter, and you need to be bureaucrat par excellence or the permanent bureaucracy of the foreign service will destroy you," said Danielle Pletka, a senior vice president at the conservative-leaning American Enterprise Institute.

While Mr. Tillerson is unusual for his lack of prior government experience, other business leaders have moved into cabinet posts and other high-ranking government positions.

George Shultz served for seven years as secretary of state under President Ronald Reagan after rising to president of engineering firm Bechtel Inc. Prior to Bechtel, Mr. Shultz spent five years in several top Washington posts, including as Treasury secretary.

Other prominent cabinet secretaries with top corporate experience include former defense secretaries Caspar Weinberger, who also worked at Bechtel, and Robert McNamara, who served as president of Ford Motor Co. Before becoming George W. Bush's vice president, Dick Cheney spent five years as the chief executive of Halliburton Co.

Mr. Tillerson joined Exxon in 1975. As he climbed the corporate ladder, he faced a common challenge at big, multinational oil companies: build relationships with leaders controlling chunks of the world's fossil-fuel wealth.

Some of those leaders were strongmen on the wrong side of the U.S. government. Along with Mr. Putin, Mr. Tillerson has done business with dictators in Angola and Chad and talked oil with former Libyan leader Moammar Gadhafi.

Under Mr. Tillerson, Exxon joined with companies owned by Saudi Arabia, a longtime U.S. ally that has been a recent target of American politicians.

It's his work in Russia that has attracted the most attention in the Senate, particularly from defense hawks who worry Mr. Putin will continue trying to thwart U.S. interests.

"I have a very close relationship with [Mr. Putin]," Mr. Tillerson told students at the University of Texas, his alma mater, in February. "I don't agree with everything he's doing. I don't agree with everything a lot of leaders are doing. But he understands that I am a businessman. And I have invested a lot of money, our company has invested a lot of money, in Russia, very successfully."

Mr. Tillerson often used diplomacy of sorts to make international oil deals, but those were on behalf of Exxon and its shareholders.

"I'm not here to represent the United States government's interest," he told his Texas audience in recounting his conversations with foreign officials. "I'm not here to defend it nor am I here to criticize it. That's not what I do -- I'm a businessman," Mr. Tillerson said.

That has meant operating in ways not always aligned with U.S. interests and sometimes without heeding the requests of local U.S. embassies, according to two former U.S. diplomats who worked in countries where Exxon operated.

Exxon has been more direct and more demanding with foreign leaders than other companies, according to a former executive at a rival who was a partner with Exxon in joint ventures.

In China, by contrast, a country that will be a big part of Mr. Tillerson's portfolio, should be be confirmed, his contact with government leaders has been limited to building a large refinery and petrochemical facility in Fujian province.

"I don't think he's very well known to the Chinese government leaders," said Victor Gao, a former top executive at state-owned oil company Cnooc Ltd.

In Russia, Mr. Tillerson sometimes worked on deals directly with Mr. Putin. The Exxon executive was a rising star at the company at the end of the 1990s when he handled the politically and technologically complex project on Sakhalin, a $17 billion development to drill for oil.

Mr. Putin became Russian prime minister in 1999 and has run the country, either as president or prime minister, ever since. Mr. Tillerson's success, including on the Sakhalin deal, helped him catapult past other executives to lead Exxon.

As the project was progressing in the early 2000s, Mr. Putin's Kremlin was becoming more assertive in its dealings with Western oil companies, which some felt had received too-favorable deals in the 1990s.

Mr. Tillerson navigated that situation in part by keeping state-controlled PAO Rosneft as a partner in the project. Rosneft has since grown to become one of the world's largest publicly traded oil producers.

Mr. Tillerson teamed up again with Rosneft in 2011 as global majors were jostling for a piece of potentially huge resources in the Russian Arctic.

BP PLC Chief Executive Robert Dudley was trying to secure plum Arctic fields for the U.K.-based oil company, but his partners in another Russian venture, TNK-BP, managed to block the deal. Mr. Tillerson swooped in.

At a June 2012 meeting with Mr. Putin, Mr. Tillerson said Exxon's Arctic deal enhanced U.S.-Russian ties. "I agree, as you point out, that nothing strengthens relationships between countries better than business enterprise," a Kremlin transcript quoted him saying.

The next year, Mr. Putin awarded Mr. Tillerson Russia's Order of Friendship for his work.

Exxon suffered a setback in its efforts to profit from its Russia dealings after the Kremlin annexed Crimea, at the time part of Ukraine, and ties deteriorated between the U.S. and Russia.

After Moscow's military intervened in eastern Ukraine, the Obama administration added more sanctions, including on Russian energy companies such as Rosneft, forcing a halt to drilling in the Arctic.

William W. George, an Exxon board member until last year, said Mr. Tillerson opposed the U.S. sanctions. Yet "Rex didn't fight it," he said. "He didn't go to court."

Mr. George, a former chief executive of Medtronic Inc. who now teaches leadership as a senior fellow at Harvard Business School, said Mr. Tillerson's extensive dealings with foreign leaders like Mr. Putin should help him as secretary of state.

"He would never put Putin's interests ahead of Exxon's when I was there," said Mr. George.

Mr. Tillerson's Russian oil diplomacy was on display during a visit to Moscow in June, when he was asked about the economic sanctions that have blocked Exxon from reaping the benefits of the Arctic-drilling agreement and partnership that he helped broker in 2011.

Referring to Igor Sechin, the head of Rosneft and a close ally of Mr. Putin, Mr. Tillerson said: "As to the sanctions questions, I'll use the same approach that my friend Mr. Sechin took. That's a question for the government. So if there's a U.S. government official here who'd like to respond, I'm happy to toss it to them."

Mr. Sechin burst into laughter and gave Mr. Tillerson a thumbs-up.

---

Russell Gold, Joann S. Lublin, Brian Spegele and Joe Parkinson contributed to this article.

---

From Top Corporate Jobs to the Cabinet and White House

ROBERT MCNAMARA

Defense Secretary

President of Ford Motor Co.

Mr. McNamara got the call to be President John F. Kennedy's defense chief in 1960 weeks after becoming president of Ford Motor Co., where he had helped rebuild the American auto maker after World War II. After difficulties in the confirmation process, he eventually pledged in writing to sell all holdings in any company doing business with the Pentagon.

Mr. McNamara remained in the job until 1968 under President Lyndon Johnson, making Mr. McNamara the longest-serving defense secretary.

DICK CHENEY

Vice President

CEO of Halliburton Co.

Before serving as vice president under George W. Bush, Mr. Cheney spent five years as chairman and chief executive of oil-services and infrastructure company Halliburton Co. He had been defense secretary to George H.W. Bush, a House member from Wyoming and White House chief of staff for President Gerald Ford.

Halliburton's business with the Pentagon grew while he was vice president, but the Bush administration denied giving the company special treatment.

GEORGE SHULTZ

Secretary of State

President of Bechtel Corp.

Mr. Shultz was secretary of state in the Reagan administration from 1982 to 1989. He had been president at construction and engineering company Bechtel, then one of the largest nuclear-plant builders. Bechtel's ties to the Arab world raised concerns among some groups that Mr. Shultz would tilt Middle East policy away from Israel.

He was labor secretary from 1969 to 1970, Office of Management and Budget director from 1970 to 1972 and Treasury secretary from 1972 to 1974.

Credit: Justin Scheck, James Marson, Damian Paletta

Subject: Political appointments; Cabinet

Location: Russia

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.1

Publication year: 2016

Publication date: Dec 14, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: Feature

ProQuest document ID: 1848468854

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848468854?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Will The Media Forgive Trump for Winning? Plus, Exxon's CEO could go wobbly on fossil fuels.

Author: Freeman, James

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.

ProQuest document link

Abstract:

Why should it shock or outrage anyone that Mr. Trump is appointing cabinet members who support the use of fossil fuels ?" The Journal's editorial board is concerned that, ironically, former Exxon CEO Rex Tillerson might not support fossil fuels enough as Secretary of State.

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"The press still isn't over the fact that a nonpolitician won the White House," writes our columnist Jason Riley . "The current hubbub over Mr. Trump's financial conflicts of interest resembles the debate over his tax returns during the campaign. The media was obsessed with getting Mr. Trump to make his returns public, but voters didn't care." Mr. Riley also notes that "Hillary Clinton promised to put the coal industry out of business and lost. Why should it shock or outrage anyone that Mr. Trump is appointing cabinet members who support the use of fossil fuels ?"

The

Journal's editorial board is concerned that, ironically, former Exxon CEO Rex Tillerson might not support fossil fuels enough as Secretary of State. "Democrats will attempt to stigmatize him" for his experience at the center of the carbon economy, "and our worry is the CEO will spend his State tenure trying to mollify those critics ."

Our columnist Holman W. Jenkins, Jr. sees in Mr. Tillerson a person who can talk to Russian strongman Vladimir Putin, having negotiated with him over oil. But Mr. Jenkins believes that Russia won't be President Trump's biggest foreign-policy headache. "An unraveling of the European Union, or at least the euro currency, may be the real threat to all the good things Mr. Trump wants to do for the U.S. economy, by which his presidency will be judged by those who put him there ."

Speaking of economic policy, the editorial board notes that "nobody seems to know what Mr. Trump's economic team thinks about economics." Gary Cohn, who is the President-elect's latest hire from Goldman Sachs, appears to be a blank slate on policy .

Venezuelans are no doubt thinking a lot about what happens when a nation pursues destructive economic policies. With inflation running around 470%, the socialist government has decided to ring in the Christmas season by seizing millions of toys before they reach Venezuelan shoppers.

Back in the U.S., where politicians are fortunately more accountable to voters, NYU Professor Paul Light says the people who decide elections don't want the end of government, but just want it to work better.

Our columnist William Galston wonders how well the confirmation process will work for Trump cabinet appointees, given fierce liberal opposition.

Also today, anyone despairing over political and racial polarization will find solace in Dorothy Gaiter's beautiful history of a black family in the Jersey Shore town of Toms River.

Credit: By James Freeman

Subject: Political campaigns; Journalists; Fossil fuels

Location: United States--US

People: Cohn, Gary Tillerson, Rex W Putin, Vladimir Clinton, Hillary

Company / organization: Name: Goldman Sachs Group Inc; NAICS: 523110, 523120; Name: European Union; NAICS: 926110, 928120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 14, 2016

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1848472666

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Faces Dilemma on Rex Tillerson's Pay; Now that the CEO is Donald Trump's pick for secretary of state, granting a $175 million stock award could open the company to criticism

Author: Olson, Bradley; Hoffman, Liz

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.

ProQuest document link

Abstract:

According to Exxon's compensation rules, the board can decide whether to let executives such as Mr. Tillerson keep the unvested shares if they depart before turning 65.

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Exxon Mobil Corp.'s board faces a difficult decision over how to make a financial break with Chief Executive Rex Tillerson, who will step down at year's end now that Donald Trump has chosen him as secretary of state .

The oil giant, which announced Mr. Tillerson's departure Wednesday, is considering whether to grant him more than $175 million in stock compensation that he is currently eligible for only upon hitting the retirement age of 65 in March. The board also has to decide whether to grant the shares immediately, instead of over years.

Allowing Mr. Tillerson to retire early and cash out would be a break from company policy under which vesting occurs after a decade. It could also open Exxon to criticism it is giving Mr. Tillerson a gift as he heads to a government post in which he could have vast influence over Exxon's fortunes.

However, if the cabinet nominee is able to fully divest his Exxon holdings , that would alleviate concerns over how he could personally benefit from State Department actions that help Exxon.

The board is weighing the matter now, according to people familiar with the matter. Whatever the company decides, the issue is certain to become a flashpoint in what is already expected to be an explosive Senate confirmation process.

Exxon directors announced they will quicken the company's planned succession to elevate Darren Woods , 51, to the position of chief executive. Mr. Woods, who had been anointed as Mr. Tillerson's heir apparent, will officially take the post Jan. 1. In its statement, Exxon didn't address the matter of Tillerson's compensation.

While the company could try to dodge the issue by not giving Mr. Tillerson the added compensation he was set to receive in a few months, it would mean shortchanging a 41-year employee of his anticipated retirement windfall.

The decision is one example of the corporate tumult created by Mr. Trump's decision to tap so many sitting executives for his cabinet. In addition to Mr. Tillerson, others include Gary Cohn, the second-in-command at Goldman Sachs Group Inc. , and Andy Puzder, chief executive of Hardee's parent CKE Restaurants .

Cashing out Mr. Tillerson may be the best of several bad options for Exxon, which is trying to avoid the conflict-of-interest scrutiny that followed Halliburton Co. when Dick Cheney, who had been the company's chief executive, was elected vice president as part of George W. Bush's administration in 2000.

Halliburton's board voted to grant Mr. Cheney early retirement, a step that allowed him to receive a departure package worth about $20 million. He sold shares of the oil-field-services company worth more than $30 million during the campaign, but he retained hundreds of thousands of stock options and sold them gradually during his time in office, donating any profits to charity.

The Tillerson conundrum will surely put the company's board in a tough spot, said Robert Jackson, a corporate-governance expert at Columbia University.

Exxon's directors have to ask themselves "whether a public servant should be receiving a $175 million gift from a private corporation," Mr. Jackson said.

"This is a classic Catch-22," said Charles Elson, a professor of governance at the University of Delaware. "You're damned if you do and you're damned if you don't. They're in a tough position. There is no easy answer to this one."

The company's compensation structure was clearly designed to prevent someone from reaping a windfall if they were to leave early to join a competitor or under circumstances that the board disapproves of, but Mr. Tillerson is going into public service, Mr. Elson said.

Mr. Tillerson had 2 million unvested shares as of this month, which were worth $184 million at Tuesday's closing price, according to securities filings. He also owns shares worth at least $55 million that have already vested and a pension valued at about $69 million as of year-end 2015.

Exxon shares have risen 16% this year and 6% in the postelection stock market rally.

According to Exxon's compensation rules, the board can decide whether to let executives such as Mr. Tillerson keep the unvested shares if they depart before turning 65. The board also can accelerate the receipt of unvested shares, something the company usually doesn't do except in the case of a death before the vesting period is up, according to securities filings.

Such compensation policies apply to more than 1,000 executives at the oil company, where officials take pains to emphasize that the same rules apply to the CEO as everyone else. Exxon designed the pay packages to push its senior leaders to think about long-term returns.

Accelerating stock grants for executives entering public service isn't unprecedented.

In 2001, rail operator CSX Corp. amended its contract with CEO John Snow to allow him to receive his salary and bonus upfront in the even he left for government service. In 2003, he became President George W. Bush's Treasury secretary.

In 2006, Goldman Sachs accelerated about $26 million worth of unvested stock held by Hank Paulson, who replaced Mr. Snow. It also paid him a $18.7 million cash bonus for the half-year of work he did as CEO and chairman of the bank.

Theo Francis contributed to this article.

Write to Bradley Olson at Bradley.Olson@wsj.com and Liz Hoffman at liz.hoffman@wsj.com

Related

* Trump's Nominees Stand to Reap Tens of Millions of Dollars in Potential Tax Deferrals

* Moscow Sees Rex Tillerson as Chance to End Sanctions, Reboot U.S. Ties

* How Rex Tillerson, a Late Entry to Be Secretary of State, Got Donald Trump's Nod

* Confirmation Battle Looms for Rex Tillerson as Secretary of State

Credit: By Bradley Olson and Liz Hoffman

Subject: Chief executive officers; Retirement; Political campaigns; Compensation

People: Cohn, Gary Woods, Darren Bush, George W Trump, Donald J Cheney, Richard B

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: CKE Restaurants Inc; NAICS: 722513; Name: Hardees Food Systems Inc; NAICS: 722513; Name: Halliburton Co; NAICS: 213112, 237990; Name: Goldman Sachs Group Inc; NAICS: 523110, 523120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 14, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1848544860

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848544860?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Mobil Taps Darren Woods to Replace Rex Tillerson as CEO; Move comes after President-elect Donald Trump picked Mr. Tillerson as next Secretary of State

Author: Steele, Anne

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Dec 2016: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. said Darren Woods will succeed Rex Tillerson as chairman and chief executive of the company, after Mr. Tillerson was tapped by President-elect Donald Trump to serve as the next U.S. Secretary of State.

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Exxon Mobil Corp. said Darren Woods will succeed Rex Tillerson as chairman and chief executive of the company, after Mr. Tillerson was tapped by President-elect Donald Trump to serve as the next U.S. Secretary of State.

Mr. Woods, currently the company president, will replace Mr. Tillerson, who has been with the oil giant for more than 41 years, on Jan. 1.

Mr. Tillerson was scheduled for mandatory retirement in March when he turned 65 years old, but after consideration, "Tillerson concluded, and the board agreed, that given the significant requirements associated with the confirmation process, it was appropriate to move the retirement date."

Exxon Mobil now faces a speedy transition to a new leader while managing the intense scrutiny Mr. Tillerson's new public role could bring to the oil and gas behemoth. Still, experts have said Exxon Mobil, which has been meticulous and rigorous in its succession planning, won't be fazed by the transition.

Mr. Tillerson began at Exxon Company USA in 1975 as a production engineer and, over the next four decades, held various senior roles including executive vice president of ExxonMobil Development Company. He was named senior vice president in 2001 and then to the board three years later. He has been chairman and CEO since January 2006.

Mr. Woods, 51 years old, joined Exxon Company International in 1992. He rose up the ranks in the oil giant's vast refining and chemical business--Mr. Tillerson had moved up through the company's exploration and oil-pumping side--and emerged as Mr. Tillerson's heir apparent last December when he was appointed president of the company and took a seat on the board.

Exxon shares were trading down 2.1% Wednesday afternoon to $90.61.

While the U.S. hasn't seen a CEO as powerful as Mr. Tillerson go straight from the boardroom to a presidential cabinet in decades, the election in 2000 of former Vice President Dick Cheney, a former Halliburton Co. CEO, provides a recent parallel.

Halliburton became a political lightning rod after the U.S.-led invasion of Iraq in 2003, when the company won billions in contracts to work Iraq oil fields and support the U.S. military.

Exxon could face similar tests as Mr. Tillerson leads a Trump diplomatic team that will make decisions on such foreign policy issues as sanctions on Russia, human-rights abuses in resource-rich countries and climate change, experts have said.

Bradley Olson and Lynn Cook contributed to this article

Write to Anne Steele at Anne.Steele@wsj.com

More

* Exxon Faces Dilemma on Rex Tillerson's Pay

* With Tillerson Tapped for Cabinet, Darren Woods Likely to Lead Exxon

* Trump Picks Exxon Chief for State Department

* Deals With Putin Helped Fuel Tillerson's Rise at Exxon

Credit: By Anne Steele

Subject: Appointments & personnel changes; Succession planning

Location: United States--US

People: Woods, Darren Cheney, Richard B Trump, Donald J

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2016

Publication date: Dec 14, 2016

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1848673992

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1848673992?accountid=7117

Copyright: (c) 2016 Dow Jones & Company, I nc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Faces Pay Quandary

Author: Olson, Bradley; Hoffman, Liz

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]15 Dec 2016: B.1.

ProQuest document link

Abstract:

According to Exxon's compensation rules, the board can decide whether to let executives such as Mr. Tillerson keep the unvested shares if they depart before turning 65.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp.'s board faces a difficult decision over how to make a financial break with Chief Executive Rex Tillerson, who will step down at year's end now that Donald Trump has chosen him as secretary of state.

The oil giant, which announced Mr. Tillerson's departure Wednesday, is considering whether to grant him more than $175 million in stock compensation that he is currently eligible for only upon hitting the retirement age of 65 in March. The board also has to decide whether to grant the shares immediately, instead of over years.

Allowing Mr. Tillerson to retire early and cash out would be a break from company policy under which vesting occurs after a decade. It could also open Exxon to criticism it is giving Mr. Tillerson a gift as he heads to a government post in which he could have vast influence over Exxon's fortunes.

However, if the cabinet nominee is able to fully divest his Exxon holdings, that would alleviate concerns over how he could personally benefit from State Department actions that help Exxon.

The board is weighing the matter now, according to people familiar with the matter. Whatever the company decides, the issue is certain to become a flashpoint in what is already expected to be an explosive Senate confirmation process.

Exxon directors announced they will quicken the company's planned succession to elevate Darren Woods, 51, to the position of chief executive. Mr. Woods, who had been anointed as Mr. Tillerson's heir apparent, will officially take the post Jan. 1. In its statement, Exxon didn't address the matter of Mr. Tillerson's compensation.

While the company could try to dodge the issue by not giving Mr. Tillerson the added compensation he was set to receive in a few months, it would mean shortchanging a 41-year employee of his anticipated retirement windfall.

The decision is one example of the corporate tumult created by Mr. Trump's decision to tap so many sitting executives for his cabinet. In addition to Mr. Tillerson, it includes Gary Cohn, the second-in-command at Goldman Sachs Group Inc.; and Andy Puzder, chief executive of Hardee's parent CKE Restaurants.

Cashing out Mr. Tillerson may be the best of several bad options for Exxon, which is trying to avoid the conflict-of-interest scrutiny that followed Halliburton Co. when Dick Cheney, who had been the company's chief executive, was elected vice president as part of George W. Bush's administration in 2000.

Halliburton's board voted to grant Mr. Cheney early retirement, a step that allowed him to receive a departure package worth about $20 million. He sold shares of the oil-field-services company worth more than $30 million during the campaign, but he retained hundreds of thousands of stock options and sold them gradually during his time in office, donating any profits to charity.

The Tillerson conundrum will surely put the company's board in a tough spot, said Robert Jackson, a corporate-governance expert at Columbia University.

Exxon's directors have to ask themselves "whether a public servantshould be receiving a $175 million gift from a private corporation," Mr. Jackson said.

"This is a classic Catch-22," said Charles Elson, a professor of governance at the University of Delaware. "You're damned if you do and you're damned if you don't. They're in a tough position. There is no easy answer to this one."

The company's compensation structure was clearly designed to prevent someone from reaping a windfall if they were to leave early to join a competitor or under circumstances that the board disapproves of, but Mr. Tillerson is going into public service, Mr. Elson said.

Mr. Tillerson had 2 million unvested shares as of this month, which were worth $184 million at Tuesday's closing price, according to securities filings.

He also owns shares worth at least $55 million that have already vested and a pension valued at about $69 million as of year-end 2015.

Exxon shares have risen 16% this year and 6% in the postelection stock-market rally.

According to Exxon's compensation rules, the board can decide whether to let executives such as Mr. Tillerson keep the unvested shares if they depart before turning 65. The board also can accelerate the receipt of unvested shares, something the company usually doesn't do except in the case of a death before the vesting period is up, according to securities filings.

Accelerating stock grants for executives entering public service isn't unprecedented.

In 2001, rail operator CSX Corp. amended its contract with CEO John Snow to allow him to receive his salary and bonus upfront in the even he left for government service. In 2003, he became President George W. Bush's Treasury secretary.

In 2006, Goldman Sachs accelerated about $26 million worth of unvested stock held by Hank Paulson, who replaced Mr. Snow. It also paid him a $18.7 million cash bonus for the half-year of work he did as CEO and chairman of the bank.

---

Theo Francis contributed to this article.

Credit: By Bradley Olson and Liz Hoffman

Subject: Retirement; Executive compensation

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2016

Publication date: Dec 15, 2016

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1848779665

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Copyright: (c) 2016 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Mobil Cashes Out Ex-CEO Tillerson Ahead of Confirmation Hearings; Exxon pay package to secretary of state nominee Rex Tillerson worth $180 million

Author: Olson, Bradley; Paletta, Damian

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Jan 2017: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. has awarded former Chief Executive Rex Tillerson a $180 million retirement package as the company moves to break financial ties with President-elect Donald Trump's nominee for secretary of state.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. has awarded former Chief Executive Rex Tillerson a $180 million retirement package as the company moves to break financial ties with President-elect Donald Trump's nominee for secretary of state.

If Mr. Tillerson is confirmed, Exxon will transfer the equivalent value of two million unvested shares that he was set to receive at his previously expected retirement in March into a trust, according to the company.

The decision will allow Mr. Tillerson to sell off all his remaining shares in the company, a step he has committed to make if he is confirmed, according to Exxon. Currently, he holds more than 600,000 vested shares worth about $54 million. The deal amounts to about $7 million less than the compensation package that he would have received if he had not been tapped for the post.

Mr. Tillerson stepped down as Exxon CEO on Jan. 1. Before his nomination, he was set to receive more than $180 million in shares that would have vested over a decade. The company consulted with federal regulators before agreeing to terms.

The trust would be prohibited from investing in Exxon, and payments to Mr. Tillerson would be subject to the same 10-year schedule as his unvested stock would have been, according to the company. He will be prohibited from working in the oil and gas industry during the 10-year payout period. If he does return to the energy industry, the remaining funds in the trust would be forfeited and donated to charities "involved in fighting poverty or disease in the developing world," according to Exxon.

By allowing Mr. Tillerson to fully divest his company holdings, Exxon may alleviate concerns that he could personally benefit from State Department actions that help his former company. But the decision may open Exxon to criticism that it is granting Mr. Tillerson millions of dollars just as he is poised to take a post in which he could influence the company's business results.

"Exxon is trying to make the best of a tough situation," said Charles Elson, a professor of governance at the University of Delaware. "It would be unfair to take it all away, but vesting his shares would create a lot of problems. They're trying to give him value for what he accomplished and also protect the company. There's no easy solution to this."

Mr. Tillerson could not be immediately reached for comment. He is scheduled to appear before the U.S. Senate Foreign Relations Committee for two days of confirmation hearings beginning Jan. 11.

The severance package is likely the first of many such disclosures by President-elect Donald Trump's potential cabinet appointees, many of whom are wealthy current or former business executives. In addition to Mr. Tillerson, others include Wilbur Ross, the billionaire banker and restructuring specialist, who Mr. Trump tapped to be secretary of commerce, and Gary Cohn, the former second-in-command at Goldman Sachs Group Inc., who Mr. Trump would like to lead the National Economic Council.

Exxon is seeking to avoid the scrutiny that dogged Halliburton Co. when Dick Cheney, who had been the company's chief executive, was elected vice president and joined George W. Bush's administration in 2000. Exxon shares have risen about 5% since the election.

Halliburton's board granted Mr. Cheney early retirement, a step that allowed him to receive a departure package worth about $20 million. He sold shares of the oil-field-services company worth more than $30 million during the campaign, but he retained hundreds of thousands of stock options and sold them gradually during his time in elected office. Any profits from the sales were donated to charity, Mr. Cheney's office said at the time.

On Sunday, Exxon elevated heir apparent Darren Woods to the chief executive role. Mr. Woods is a Kansas native who presided over the company's refining operations.

Liz Hoffman contributed to this article.

Write to Bradley Olson at Bradley.Olson@wsj.com and Damian Paletta at damian.paletta@wsj.com

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Credit: By Bradley Olson and Damian Paletta

Subject: International relations; Political campaigns; Energy industry

People: Ross, Wilbur L Jr Trump, Donald J

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: University of Delaware; NAICS: 611310

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Jan 4, 2017

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1854923496

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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Exxon Cashes Out Ex-CEO Tillerson

Author: Olson, Bradley; Paletta, Damian

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]04 Jan 2017: B.1.

ProQuest document link

Abstract:

Exxon Mobil Corp. has awarded former Chief Executive Rex Tillerson a $180 million retirement package as the company moves to break financial ties with President-elect Donald Trump's nominee for secretary of state.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. has awarded former Chief Executive Rex Tillerson a $180 million retirement package as the company moves to break financial ties with President-elect Donald Trump's nominee for secretary of state.

If Mr. Tillerson is confirmed, Exxon will transfer the equivalent value of two million unvested shares that he was set to receive at his previously expected retirement in March into a trust, according to the company.

The decision will allow Mr. Tillerson to sell off all of his remaining shares in the company, a step he has committed to make if he is confirmed, according to Exxon. Currently, he holds more than 600,000 vested shares worth about $54 million. The deal amounts to about $7 million less than the compensation package that he would have received if he hadn't been tapped for the post.

Mr. Tillerson stepped down as Exxon CEO Jan. 1. Before his nomination, he was set to receive more than $180 million in shares that would have vested over a decade. The company consulted with federal regulators before agreeing to terms.

The trust would be prohibited from investing in Exxon, and payments to Mr. Tillerson would be subject to the same 10-year schedule as his unvested stock, according to the company. He will be prohibited from working in the oil-and-gas industry during the 10-year payout period. If he does return to the energy industry, the remaining funds in the trust would be forfeited and donated to charities "involved in fighting poverty or disease in the developing world," according to Exxon.

By allowing Mr. Tillerson to fully divest himself of his company holdings, Exxon may alleviate concerns that he could personally benefit from State Department actions that help his former company. But the decision may open Exxon to criticism that it is granting Mr. Tillerson millions of dollars just as he is poised to take a post in which he could have influence over the company's business success.

Mr. Tillerson couldn't be immediately reached for comment. He is scheduled to appear before the U.S. Senate Foreign Relations Committee for two days of confirmation hearings beginning Jan. 11.

---

Liz Hoffman contributed to this article.

Credit: By Bradley Olson and Damian Paletta

Subject: Retirement; Executive compensation

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2017

Publication date: Jan 4, 2017

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1854982306

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1854982306?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Jour nal

Dow Retreats After Flirting With 20000; Declines in Exxon Mobil and Chevron pressure the blue-chip index

Author: Banerji, Gunjan; Bird, Mike

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Jan 2017: n/a.

ProQuest document link

Abstract:

Renewed concerns about a glut of crude sent U.S. oil prices down 3.8%-- their biggest daily drop since November--and weighed on a sector of the stock market that was a top performer last year.

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Full text:  

Corrections & Amplifications:

The U.K.'s FTSE 100 index closed at a record high on Tuesday, Jan. 10, marking the longest streak of records in data going back to 1986, according to the WSJ Market Data Group. An earlier version of this article, published Monday, Jan. 9, incorrectly said that if the index closed at a record high on Tuesday it would mark the longest streak of records since 1987. (Jan. 11, 2017)

The S&P 500 fell Monday, led by declines in energy shares as oil prices slumped.

Renewed concerns about a glut of crude sent U.S. oil prices down 3.8%-- their biggest daily drop since November--and weighed on a sector of the stock market that was a top performer last year.

Declines in Exxon Mobil and Chevron pressured the Dow Jones Industrial Average, sending the blue-chip index farther from the elusive 20000 mark after it got closer than ever before on Friday. The Dow industrials have risen nearly 9% since Election Day, largely on expectations of higher growth under President-elect Donald Trump.

Some investors and analysts expect volatility, which was relatively low the first week of the year, to pick up in coming months when details on Mr. Trump's policies become clearer.

"We need a breather in here," said Michael Mullaney, director of global markets research at Boston Partners. "We are well overdue for some kind of a pullback. That's what we're seeing right now."

Investors who have logged short-term gains are likely taking some money off the table, Mr. Mullaney said, adding that such a retreat is healthy for the market.

The Dow Jones Industrial Average fell 76 points, or 0.4%, to 19887 on Monday. The S&P 500 declined 0.4% and the Nasdaq Composite edged up 0.2% on gains in tech and biotechnology shares.

Nvidia, the best-performing stock in the S&P 500 last year , was one of Monday's top performers . Shares rose 4.1%.

Energy companies in the S&P 500 lost 1.5%, knocking a sector that was the best performer out of 11 last year with a 24% gain. Southwestern Energy shed 4.9% Monday, Range Resources lost 4.3% and Devon Energy fell 4.3%.

The declines came as U.S. crude for February delivery fell to $51.96 a barrel, its lowest settlement since Dec. 16 and its biggest one-day percentage decline since Nov. 29. Some analysts and brokers said signs of steadily high supply coming out of Iraq and Iran were undermining faith in a deal to cut supply from the Organization of the Petroleum Exporting Countries and other global exporters.

Elsewhere, the Stoxx Europe 600 fell 0.5% on declines in the banking and energy sectors. The U.K.'s FTSE 100 was one of the few European indexes in positive territory, rising 0.4% to notch its eighth consecutive record close.

If the index closes at another record Tuesday, it would mark the longest streak of records in data going back to 1986, according to the WSJ Market Data Group.

The FTSE tends to benefit from a drop in the British pound, which slumped Monday after U.K. Prime Minister Theresa May said Britain would make a definitive break from the European Union. The pound was recently down 1.1% against the U.S. dollar at $1.2156.

Demand for havens helped U.S. government bond prices rise. The yield on the 10-year U.S. Treasury note fell to 2.377% from 2.417% Friday.

Hong Kong's Hang Seng rose 0.2% and the Shanghai Composite Index added 0.5%. Japanese markets were closed for a public holiday.

Write to Gunjan Banerji at Gunjan.Banerji@wsj.com and Mike Bird at Mike.Bird@wsj.com

Credit: By Gunjan Banerji and Mike Bird

Subject: Stock exchanges; Dow Jones averages; Investments; Energy industry

Location: United States--US

People: Trump, Donald J

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Devon Energy Corp; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Jan 9, 2017

column: U.S. Markets

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1856474257

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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Inside Rex Tillerson's Negotiating Style: Cozy With Power, Unbending and Theatrical; Senate to weigh if Exxon chief's experience with multibillion-dollar, international deals prepares him to be secretary of state

Author: Scheck, Justin; Marson, James; Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Jan 2017: n/a.

ProQuest document link

Abstract:

The Exxon Mobil Corp. chief executive, now Donald Trump's nominee for secretary of state , would deepen his company's longstanding partnership with the Kremlin. In a 2004 interview with The Wall Street Journal he described how when a Russian minister in the 1990s slammed his fist on the bargaining table in a dispute over a permit, raising images of former Soviet leader Nikita Khrushchev, he gingerly brought him back to the discussion.

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MOSCOW--In the spring of 2014, after the U.S. punished Russia with sanctions for seizing Ukrainian territory, Rex Tillerson made a major decision. The Exxon Mobil Corp. chief executive, now Donald Trump's nominee for secretary of state , would deepen his company's longstanding partnership with the Kremlin.

During negotiations, the CEO of Rosneft, the Kremlin's state-controlled oil company, looked over a proposed contract related to the pair's operations off Sakhalin Island, in Russia's Far East, and scowled, said a person with knowledge of the meeting. Exxon, he said, put language in the contract he didn't expect. He looked at Mr. Tillerson and tore it up.

Mr. Tillerson, the person said, leaned back, put his hands together, smiled silently--and waited. With billions of dollars already invested, the Russians had few other options. Rosneft's CEO, a former intelligence officer and top Putin ally named Igor Sechin, eventually backed down, and an agreement was struck.

A look at Mr. Tillerson's negotiating style, honed over years at the head of one of the world's largest oil companies, shows an executive determined to hold the course, even when the landscape shifts dramatically. Personal relationships were often a deciding factor. So were deliberately theatrical tactics, such as preplanned temper tantrums and silent stare-offs.

The question for the Senate, which is expected to consider Mr. Tillerson's nomination on Wednesday, is to what extent this kind of expertise prepares him for the job of secretary of state. He has vast experience hammering out multibillion-dollar deals that potentially span decades with government leaders of all stripes. On the other hand, a company is not a country.

The former Exxon chief's dealings with Rosneft are likely to be a major line of questioning from both Republicans and Democrats, many of whom have said they are uncomfortable with Mr. Tillerson's close ties there in the wake of Russia's alleged hacking attack on figures in the Democratic Party.

The Russia deals added hundreds of millions of dollars to Exxon's bottom line and billions of barrels of potential reserves to bolster the company's future production. At the same time, they ran afoul of State Department priorities at a time when the U.S. was using sanctions to try to check Russian military interventions in Ukraine.

For Exxon, one of the world's largest publicly traded oil companies, the results of the Russia deals are mixed. The deals struck in 2014, which technically expanded projects already in operation, didn't violate sanctions, which targeted the spread of oil and gas technology. But other projects, especially a vast Arctic investment, ground to a halt, blocking Exxon's access to rich reserves it hoped would ease its longtime struggle to find new resources .

"This is an industry with very long timelines," said Alan Jeffers, an Exxon spokesman. "The current situation prevents us from activities in the area that are sanctioned, but we see that as a pause."

Mr. Tillerson declined to comment. Mr. Sechin and Rosneft didn't respond to emailed questions.

Mr. Tillerson, who joined Exxon in 1975 and became CEO in 2006, specialized in the types of deals that typified the oil industry in the run-up to the recent price crash: Giant agreements, sometimes in unstable places, that cost billions of dollars to develop and aimed to produce huge volumes of oil and gas over decades.

He spent hours with the company's negotiating teams, preparing for every potential aspect and plotting tactics, including the theatrical, according to people he worked with.

In a meeting in Yemen in the 1990s, he threw a book and stormed out of talks. The tantrum was preplanned, one person said. "Anger is a strategy, not an emotion," Mr. Tillerson told colleagues.

He negotiated deals worth more than the GDP of some countries with officials who had vast power but lacked expertise. That meant he dealt with concerns other than money, such as a leader's desire for Exxon to educate local workers or help a state-owned oil company gain technology.

He drank tea with tribal leaders and showed off Exxon facilities to visiting dignitaries.

In interactions with Russian leaders, Mr. Tillerson avoided giving any impression of American superiority, especially amid the post-Cold War tensions of the 1990s.

In a 2004 interview with The Wall Street Journal he described how when a Russian minister in the 1990s slammed his fist on the bargaining table in a dispute over a permit, raising images of former Soviet leader Nikita Khrushchev, he gingerly brought him back to the discussion.

"You make yourself very aware of it, and almost go out of your way to make sure there's nothing that conveys" a superior attitude, he said. At the same time, he rarely budged on terms, seeking to project strength, said people familiar with his negotiating style.

Mr. Tillerson arrived in post-Soviet Russia in 1997 to chase the same prize as every other big Western oil executive: access to the country's vast stores of untapped crude.

He set up in a suite in the Metropol Hotel, just steps from Red Square, and tried to make sense of a Kremlin in turmoil. Russia cycled through six prime ministers in Mr. Tillerson's first 14 months.

Even before the musical chairs ended with Mr. Putin in charge, in 1999, Exxon realized something its Western rivals didn't. Joining with the Kremlin could shield the company from hostile takeovers by other state-owned firms and regulatory obstacles from the Russian government.

At a time when other Western oil giants dismissed state-owned companies as too bureaucratic and inflexible, Exxon committed to an ambitious project with Rosneft to develop an oil and gas field near Sakhalin Island. It would cost billions of dollars to develop and be one of the most technically complex projects in Exxon's history, with oil and gas deep beneath sea ice in an area prone to earthquakes and 50-foot waves.

Over the years, it would be expanded multiple times. In the past decade, the partners have produced more than 300 million barrels from three separate fields, with a potential peak of 200,000 barrels a day, Exxon said.

Mr. Tillerson had a key person on the ground, a personable, Russian-speaking Croat named Zeljko Runje, who formed close relationships with Rosneft executives and years later would help pull off an even bigger Russian deal for Exxon.

When it first partnered with Exxon, Rosneft "had no equipment, they had no technology," a former Rosneft executive said. Exxon's expertise and financing helped build Rosneft into one of the world's largest producers, which strengthened Russian President Vladimir Putin's grip on power. Energy revenues allowed him to boost spending at home and to project power abroad; Rosneft's dominance gave him control of Russia's most important industry.

In 2004, the Kremlin seized assets from OAO Yukos, then the country's largest oil company, and Rosneft took control of its main production unit, becoming the country's second-largest producer.

Exxon worked closely with Moscow to devise legislation on taxation and other issues that affected its investment, according to Igor Yusufov, Russia's energy minister from 2001 to 2004.

Mr. Tillerson met with ministers and gave suggestions for legislation, Mr. Yusufov said. "He met everyone," the Russian said. "He helped us to formulate the relationship between the state and investors."

During a U.S.-Russia energy summit in Houston in 2002, Mr. Tillerson wooed Mr. Yusufov with a trip to Exxon facilities, where he showed the Russian minister a 3-D model of the Sakhalin project as it was at the time and as it would look at peak production.

Mr. Tillerson worked closely with Rosneft executives as the project began producing in 2005. He and then-Rosneft CEO Sergey Bogdanchikov landed their private jets at tiny Teterboro Airport, in suburban New Jersey, in 2006 and discussed Sakhalin and Rosneft's coming initial public offering, said a person familiar with the talk.

Mr. Sechin, who had spent years in intelligence in Africa and elsewhere and later became a Kremlin political operative close to Mr. Putin, had become chairman of Rosneft in 2004. He took over as CEO in 2012 with the aim of extending its reach. His underlings quickly came to fear his 3 a.m. calls ordering them to pack for a trip to Asia as much as his outbursts at meetings over frustrations like project delays, former executives said.

He and Mr. Tillerson developed a comfortable rapport, said people who attended their meetings. Mr. Sechin was careful to show Mr. Tillerson he had the highest-possible backing. Two or three times a year or more, Mr. Sechin would ask Mr. Putin to speak, by phone or in person, with Mr. Tillerson, said one of the people.

Mr. Sechin came to like Mr. Tillerson because he was transparent and forceful in his communications--and was one of the few Western executives strong enough to push back against Mr. Sechin, said people familiar with the matter.

The relationship helped Exxon land one of its biggest coups. In 2011, Exxon rival BP PLC reached a deal for access to a giant Rosneft-controlled Arctic field, but BP's oligarch partners in a separate Russian joint venture blocked the deal.

Exxon's longtime Russia hand, Mr. Runje, who had been key to the Sakhalin project more than a decade earlier, saw an opening and sent a message to Mr. Tillerson, said people familiar with the matter. Mr. Runje declined to comment.

Messrs. Tillerson and Sechin hashed out a $3.2 billion deal that was to be one of the biggest exploration contracts ever. It gave Exxon access to the Arctic fields BP lost, as well as basins in Siberia and in the Black Sea.

Mr. Putin, who had come to trust Mr. Tillerson as a man of his word, blessed the deal and said investment could eventually reach $500 billion.

Mr. Putin later awarded Mr. Tillerson the Russian Order of Friendship, the country's highest honor for foreigners, after a request by Mr. Sechin, according to a person familiar with the matter.

By late 2014, when the partners hit oil and gas in the Arctic, sanctions by the U.S. and other countries were in place barring companies from sending oil and gas exploration technology to Russia, bringing operations to a halt.

In Washington, Exxon lobbied against the sanctions. Mr. Tillerson and others told senior officials that because of the complexity of the Arctic project Exxon couldn't immediately pull out without significant safety and environmental risks.

The CEO also said U.S. sanctions applied to an existing project, unlike European sanctions, which exempted developments already under way, people familiar with the matter said.

Exxon withdrew from its Arctic project, and Mr. Tillerson stayed home from a St. Petersburg economic summit in 2014 for the first time in years. He continued to attend to Russia business, including efforts to build a gas export plant at Sakhalin and other operations.

"Over the years, I think we have earned each other's respect," Mr. Tillerson told students at an event in March 2015 at Texas Tech University. When Exxon says "yes," he told them, the Russians would know that the company would "follow through on that yes. Your commitment means something. And so I think it's the most important attribute."

Credit: By Justin Scheck, James Marson and Bradley Olson

Subject: Sanctions

Location: Russia United States--US Sakhalin Island

People: Trump, Donald J

Company / organization: Name: OAO Rosneft; NAICS: 324110; Name: Democratic Party; NAICS: 813940; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Jan 9, 2017

Section: US

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1856692739

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1856692739?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Tillerson's Deal Style: Unbending, Theatrical --- Senate to weigh if Exxon experience, especially in Russia, is qualification for secretary of state

Author: Scheck, Justin; Marson, James; Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]10 Jan 2017: A.1.

ProQuest document link

Abstract:

The Exxon Mobil Corp. chief executive, now Donald Trump's nominee for secretary of state, would deepen his company's longstanding partnership with the Kremlin. In a 2004 interview with The Wall Street Journal he described how when a Russian minister in the 1990s slammed his fist on the bargaining table in a dispute over a permit, raising images of former Soviet leader Nikita Khrushchev, he gingerly brought him back to the discussion.

Links: 360 Link to Full Text

Full text:  

MOSCOW -- In the spring of 2014, after the U.S. punished Russia with sanctions for seizing Ukrainian territory, Rex Tillerson made a major decision. The Exxon Mobil Corp. chief executive, now Donald Trump's nominee for secretary of state, would deepen his company's longstanding partnership with the Kremlin.

During negotiations, the CEO of Rosneft, the Kremlin's state-controlled oil company, looked over a proposed contract related to the pair's operations off Sakhalin Island, in Russia's Far East, and scowled, said a person with knowledge of the meeting. Exxon, he said, put language in the contract he didn't expect. He looked at Mr. Tillerson and tore it up.

Mr. Tillerson, the person said, leaned back, put his hands together, smiled silently -- and waited. With billions of dollars already invested, the Russians had few other options. Rosneft's CEO, a former intelligence officer and top Putin ally named Igor Sechin, eventually backed down, and an agreement was struck.

A look at Mr. Tillerson's negotiating style, honed over years at the head of one of the world's largest oil companies, shows an executive determined to hold the course, even when the landscape shifts dramatically. Personal relationships were often a deciding factor. So were deliberately theatrical tactics, such as preplanned temper tantrums and silent stare-offs.

The question for the Senate, which is expected to consider Mr. Tillerson's nomination on Wednesday, is to what extent this kind of expertise prepares him for the job of secretary of state. He has vast experience hammering out multibillion-dollar deals that potentially span decades with government leaders of all stripes. On the other hand, a company is not a country.

The former Exxon chief's dealings with Rosneft are likely to be a major line of questioning from both Republicans and Democrats, many of whom have said they are uncomfortable with Mr. Tillerson's close ties there in the wake of Russia's alleged hacking attack on figures in the Democratic Party.

The Russia deals added hundreds of millions of dollars to Exxon's bottom line and billions of barrels of potential reserves to bolster the company's future production. At the same time, they ran afoul of State Department priorities at a time when the U.S. was using sanctions to try to check Russian military interventions in Ukraine.

For Exxon, one of the world's largest publicly traded oil companies, the results of the Russia deals are mixed. The deals struck in 2014, which technically expanded projects already in operation, didn't violate sanctions, which targeted the spread of oil and gas technology. But other projects, especially a vast Arctic investment, ground to a halt, blocking Exxon's access to rich reserves it hoped would ease its longtime struggle to find new resources.

"This is an industry with very long timelines," said Alan Jeffers, an Exxon spokesman. "The current situation prevents us from activities in the area that are sanctioned, but we see that as a pause."

Mr. Tillerson declined to comment. Mr. Sechin and Rosneft didn't respond to emailed questions.

Mr. Tillerson, who joined Exxon in 1975 and became CEO in 2006, specialized in the types of deals that typified the oil industry in the run-up to the recent price crash: Giant agreements, sometimes in unstable places, that cost billions of dollars to develop and aimed to produce huge volumes of oil and gas over decades.

He spent hours with the company's negotiating teams, preparing for every potential aspect and plotting tactics, including the theatrical, according to people he worked with.

In a meeting in Yemen in the 1990s, he threw a book and stormed out of talks. The tantrum was preplanned, one person said. "Anger is a strategy, not an emotion," Mr. Tillerson told colleagues.

He negotiated deals worth more than the GDP of some countries with officials who had vast power but lacked expertise. That meant he dealt with concerns other than money, such as a leader's desire for Exxon to educate local workers or help a state-owned oil company gain technology.

He drank tea with tribal leaders and showed off Exxon facilities to visiting dignitaries.

In interactions with Russian leaders, Mr. Tillerson avoided giving any impression of American superiority, especially amid the post-Cold War tensions of the 1990s.

In a 2004 interview with The Wall Street Journal he described how when a Russian minister in the 1990s slammed his fist on the bargaining table in a dispute over a permit, raising images of former Soviet leader Nikita Khrushchev, he gingerly brought him back to the discussion.

"You make yourself very aware of it, and almost go out of your way to make sure there's nothing that conveys" a superior attitude, he said. At the same time, he rarely budged on terms, seeking to project strength, said people familiar with his negotiating style.

Mr. Tillerson arrived in post-Soviet Russia in 1997 to chase the same prize as every other big Western oil executive: access to the country's vast stores of untapped crude.

He set up in a suite in the Metropol Hotel, just steps from Red Square, and tried to make sense of a Kremlin in turmoil. Russia cycled through six prime ministers in Mr. Tillerson's first 14 months.

Even before the musical chairs ended with Mr. Putin in charge, in 1999, Exxon realized something its Western rivals didn't. Joining with the Kremlin could shield the company from hostile takeovers by other state-owned firms and regulatory obstacles from the Russian government.

At a time when other Western oil giants dismissed state-owned companies as too bureaucratic and inflexible, Exxon committed to an ambitious project with Rosneft to develop an oil and gas field near Sakhalin Island. It would cost billions of dollars to develop and be one of the most technically complex projects in Exxon's history, with oil and gas deep beneath sea ice in an area prone to earthquakes and 50-foot waves.

Over the years, it would be expanded multiple times. In the past decade, the partners have produced more than 300 million barrels from three separate fields, with a potential peak of 200,000 barrels a day, Exxon said.

Mr. Tillerson had a key person on the ground, a personable, Russian-speaking Croat named Zeljko Runje, who formed close relationships with Rosneft executives and years later would help pull off an even bigger Russian deal for Exxon.

When it first partnered with Exxon, Rosneft "had no equipment, they had no technology," said a former Rosneft executive said. Exxon's expertise and financing helped build Rosneft into one of the world's largest producers, which strengthened Russian President Vladimir Putin's grip on power. Energy revenues allowed him to boost spending at home and to project power abroad; Rosneft's dominance gave him control of Russia's most important industry.

In 2004, the Kremlin seized assets from OAO Yukos, then the country's largest oil company, and Rosneft took control of its main production unit, becoming the country's second-largest producer.

Exxon worked closely with Moscow to devise legislation on taxation and other issues that affected its investment, according to Igor Yusufov, Russia's energy minister from 2001 to 2004.

Mr. Tillerson met with ministers and gave suggestions for legislation, Mr. Yusufov said. "He met everyone," the Russian said. "He helped us to formulate the relationship between the state and investors."

During a U.S.-Russia energy summit in Houston in 2002, Mr. Tillerson wooed Mr. Yusufov with a trip to Exxon facilities, where he showed the Russian minister a 3-D model of the Sakhalin project as it was at the time and as it would look at peak production.

Mr. Tillerson worked closely with Rosneft executives as the project began producing in 2005. He and then-Rosneft CEO Sergey Bogdanchikov landed their private jets at tiny Teterboro Airport, in suburban New Jersey, in 2006 and discussed Sakhalin and Rosneft's coming initial public offering, said a person familiar with the talk.

Mr. Sechin, who had spent years in intelligence in Africa and elsewhere and later became a Kremlin political operative close to Mr. Putin, had become chairman of Rosneft in 2004. He took over as CEO in 2012 with the aim of extending its reach. His underlings quickly came to fear his 3 a.m. calls ordering them to pack for a trip to Asia as much as his outbursts at meetings over frustrations like project delays, former executives said.

He and Mr. Tillerson developed a comfortable rapport, said people who attended their meetings. Mr. Sechin was careful to show Mr. Tillerson he had the highest-possible backing. Two or three times a year or more, Mr. Sechin would ask Mr. Putin to speak, by phone or in person, with Mr. Tillerson, said one of the people.

Mr. Sechin came to like Mr. Tillerson because he was transparent and forceful in his communications -- and was one of the few Western executives strong enough to push back against Mr. Sechin, said people familiar with the matter.

The relationship helped Exxon land one of its biggest coups. In 2011, Exxon rival BP PLC reached a deal for access to a giant Rosneft-controlled Arctic field, but BP's oligarch partners in a separate Russian joint venture blocked the deal.

Exxon's longtime Russia hand, Mr. Runje, who had been key to the Sakhalin project more than a decade earlier, saw an opening and sent a message to Mr. Tillerson, said people familiar with the matter. Mr. Runje declined to comment.

Messrs. Tillerson and Sechin hashed out a $3.2 billion deal that was to be one of the biggest exploration contracts ever. It gave Exxon access to the Arctic fields BP lost, as well as basins in Siberia and in the Black Sea.

Mr. Putin, who had come to trust Mr. Tillerson as a man of his word, blessed the deal and said investment could eventually reach $500 billion.

Mr. Putin later awarded Mr. Tillerson the Russian Order of Friendship, the country's highest honor for foreigners, after a request by Mr. Sechin, according to a person familiar with the matter.

By late 2014, when the partners hit oil and gas in the Arctic, sanctions by the U.S. and other countries were in place barring companies from sending oil and gas exploration technology to Russia, bringing operations to a halt.

In Washington, Exxon lobbied against the sanctions. Mr. Tillerson and others told senior officials that because of the complexity of the Arctic project Exxon couldn't immediately pull out without significant safety and environmental risks.

The CEO also said U.S. sanctions applied to an existing project, unlike European sanctions, which exempted developments already under way, people familiar with the matter said.

Exxon withdrew from its Arctic project, and Mr. Tillerson stayed home from a St. Petersburg economic summit in 2014 for the first time in years. He continued to attend to Russia business, including efforts to build a gas export plant at Sakhalin and other operations.

"Over the years, I think we have earned each other's respect," Mr. Tillerson told students at an event in March 2015 at Texas Tech University. When Exxon says "yes," he told them, the Russians would know that the company would "follow through on that yes. Your commitment means something. And so I think it's the most important attribute."

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Credit: By Justin Scheck, James Marson and Bradley Olson

Subject: Sanctions; Political appointments; Cabinet

Location: Russia

People: Trump, Donald J Tillerson, Rex W

Company / organization: Name: OAO Rosneft; NAICS: 324110; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.1

Publication year: 2017

Publication date: Jan 10, 2017

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1856794237

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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Exxon vs. Russia Illusions; The oil giant's Rosneft joint venture was a product of the Obama 'reset.'

Author: Jenkins, Holman W, Jr

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Jan 2017: n/a.

ProQuest document link

Abstract:

[...]the deal was a fruit of the Obama reset. [...]in its typically Boy-Scouty way, Exxon said as long as we're having a debate, let it be a serious one--and pointed out the ways a carbon tax is superior to cap and trade.

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With former Exxon Mobil chief Rex Tillerson to be grilled Wednesday on Capitol Hill, let's save the chefs time by knocking down some obvious nonsense.

Exxon is hostage to Vladimir Putin because Exxon needs Russia's oil.

At the time of the 2011 agreement in question, the Russian partners threw around giant numbers for the potential revenues involved. These numbers are still thrown around by left-wing groups. The website DemocracyNow recently spun a fantasy about how this "$500 billion oil exploration partnership" lay at the heart of a Russian plan to get Donald Trump elected.

In fact, the deal is tiny by big-oil standards. Exxon says the sanctions may have cost it $1 billion; the partners had originally talked of spending $3.2 billion. These are small numbers in relation to Exxon's $240 billion in annual revenues and $360 billion market cap.

Exxon pursued Russia in defiance of U.S. national interests.

Actually the deal was a fruit of the Obama reset. President Obama, with an Exxon executive in tow, dropped in on a Moscow business conference during his July 2009 summit with Mr. Putin. Twenty months later, Joe Biden highlighted the resulting deal in his own speech at Moscow State University. The Oil Daily headlined its story: "White House Gives Blessing to Alliance Between Exxon, Rosneft."

Exxon opposed sanctions over Crimea.

Sure it did, but the company knows force majeure when it sees it. And notice something else: carrot begets stick. Of all the sanctions levied after Mr. Putin's Crimea grab, biting hardest were those that froze Russian access to Exxon's shale and arctic know-how.

Mr. Tillerson is not only a friend but an "unabashed admirer" of Vladimir Putin, according to ABC News's Brian Ross.

Uh huh. A "friend" in Mr. Putin's world is somebody ripe to be thrown to the wolves when it suits Mr. Putin's interests, and who would probably sever Mr. Putin's spine if he could get away with it.

And Mr. Tillerson is perhaps the one to be admired, including by Mr. Putin, for the way he fought off Gazprom's attempt to seize the benefits of the firm's 20-year-old Sakhalin project, which still constitutes most of Exxon's modest stake in Russian oil.

Mr. Putin intervenes in such fights hesitantly, warily, according to his ever-changing calculations of self-preservation. Witness his flip-flopping over Rosneft's recent takeover of Bashneft, which he opposed and then supported. At the same time, he knows that shakedowns of the sort that befell BP and Shell, amid the predatory scramble of Russian elites for control of resources, are a continuing danger to his regime and its all-important oil revenues.

Exxon "stands out even among oil giants in its steadfast refusal to invest in renewable energy . . . a strategy of maximizing immediate earnings at the price of future generations' ability to live on the planet," writes Masha Gessen in the New York Review of Books.

When senators aren't bashing Mr. Tillerson over Russia, they are likely to bash him over climate change. But several common mistakes are illustrated in this indictment. It makes no sense for a company whose expertise is oil geology to invest in wind or solar, very different skill sets. Oil companies do so only for PR reasons--so they can decorate their annual reports with windmills and solar panels.

Meanwhile, the easiest way to "maximize immediate earnings" is by not investing at all. Exxon has done a lot of this, returning half its prodigious earnings to shareholders over the past decade in the form of dividends and share buybacks.

Both left and right have dubbed Exxon a hypocrite for its lukewarm endorsement of a carbon tax. In fact, in its typically Boy-Scouty way, Exxon said as long as we're having a debate, let it be a serious one--and pointed out the ways a carbon tax is superior to cap and trade.

And Exxon continues to confound critics on both sides by talking about climate change as a "risk," and, equally accurately, a risk that climate science has done far less to elucidate than common rhetoric suggests.

Russia, though, is likely to dominate Wednesday's hearing. Watch to see if a senator tries to make Mr. Tillerson accuse Mr. Putin of the many crimes the U.S. government declines to accuse him of--the murders of Anna Politkovskaya and Boris Nemtsov, the 1999 Russian apartment-building bombings, etc.

David Satter, in his own piece in today's Journal, hopes U.S. policy makers will use the opportunity to acknowledge the true nature of the Putin regime. Don't bet on it. As chess champion Garry Kasparov explained in his Putin book two years ago, "If they admitted the truth, they would have to act, and nobody wants to act."

Russian politics is a tough and dangerous business, but somebody's got to do it--that's been America's bottom line on Mr. Putin. Mr. Tillerson's success as our next secretary of state is not guaranteed--success is hard even to define in today's complex world. But at least Americans would be getting somebody with a record of succeeding in difficult assignments.

Credit: By Holman W. Jenkins, Jr.

Subject: Sanctions; Annual reports; Climate change; Environmental tax

Location: United States--US Russia

People: Obama, Barack Biden, Joseph R Jr Trump, Donald J

Company / organization: Name: Bashneft; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: ABC Inc; NAICS: 515120; Name: Moscow State University; NAICS: 611310

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Jan 11, 2017

column: Business World

Section: Opinion

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1857002368

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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Rex Tillerson May Make Unusual Tax Argument; Trump nominee wants to spread out taxes on his retirement package from Exxon Mobil

Author: Rubin, Richard

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Jan 2017: n/a.

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Abstract:

IRS rules under Section 83 of the tax code say noncompete clauses themselves generally don't amount to a substantial risk of forfeiture, said Thomas Cryan, a lawyer at Buchanan, Ingersoll & Rooney PC in Washington.\n

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Rex Tillerson, President-elect Donald Trump's pick as secretary of state, aims to use an unusual interpretation of U.S. tax law to spread out taxes owed on his retirement package over the next decade instead of paying more than $70 million immediately.

That deferral could save Mr. Tillerson more than $10 million if Mr. Trump and congressional Republicans follow through on their plans to cut individual tax rates.

Mr. Tillerson, 64, whose confirmation hearing is scheduled for Wednesday, was owed roughly $170 million when he left Exxon Mobil Corp. in December, but now the company and its former chief executive are breaking financial ties .

Exxon plans to put the cash owed to Mr. Tillerson into a trust that will pay him on the same deferred-compensation schedule on which the restrictions on his Exxon holdings were slated to lift.

Normally, the creation of such a trust for Mr. Tillerson's benefit outside Exxon would create immediate taxable income on the full $170 million.

But, the trust for Mr. Tillerson is designed to match the economic and tax treatment he would have gotten had he retired from Exxon as scheduled in March, with payments and taxes spread over a decade, according to Exxon and a person familiar with Mr. Tillerson's thinking.

To defer tax payments on the package, Mr. Tillerson must argue there is a substantial risk he will never collect the money. Forfeited payments would go to charity, according to the terms of the trust.

His claim will hinge on an argument that Mr. Tillerson himself could end up violating a noncompete agreement in the trust agreement and forfeit what has been set aside for him, the sources said.

The transition team, representing Mr. Tillerson, declined to comment.

Robert Jackson, director of the program on corporate law and policy at Columbia Law School, described the tax strategy as "one of the most aggressive and least successful tax positions executives have taken over the past two decades."

If Mr. Tillerson's position survives any scrutiny from the Internal Revenue Service, then he may benefit from the Republicans' proposed revision in the tax code to lower individual top tax rate to 33% from 39.6% and Medicare tax to 2.9% from 3.8%.

Mr. Tillerson and Exxon faced several challenges working out his separation. Exxon sought to preserve as much of its existing long-term compensation agreement with Mr. Tillerson as possible, which involved deferring pay for up to a decade. They also needed to delink those future payments from the value of Exxon stock so that Mr. Tillerson wouldn't have a conflict of interest while at the State Department.

Mr. Tillerson's tax deferrals go beyond the normal practice for corporate executives entering government service. Normally, executives can sell shares and reinvest in cash, Treasurys or some mutual funds while deferring capital-gains taxes they would otherwise owe.

Mr. Tillerson can do that with Exxon stock he already holds without restrictions. But most of his Exxon holdings are in restricted stock and restricted stock units that are scheduled to be fully available to him over the next decade.

The question of whether Mr. Tillerson must pay taxes now turns primarily on whether there is a substantial risk that he may forfeit some of the payments from the trust.

IRS rules under Section 83 of the tax code say noncompete clauses themselves generally don't amount to a substantial risk of forfeiture, said Thomas Cryan, a lawyer at Buchanan, Ingersoll & Rooney PC in Washington.

But the rules also say that presumption can be overcome by looking at the person's age, skills, the availability and likelihood of other employment and the employer's likelihood of enforcing the clause, factors that could work in Mr. Tillerson's favor.

The former Exxon executive might become more valuable to oil-and-gas companies after being secretary of state, leading him back into the industry and in violation of his noncompete.

He might also have opportunities outside the industry that would lower the risk of triggering the noncompete clause, including paid speeches and service on corporate boards.

"He's going to be much sought after," said Gregg Polsky, a tax law professor at the University of Georgia. He called Exxon's argument that the taxes can be deferred aggressive but not frivolous.

Bradley Olson contributed to this article.

Write to Richard Rubin at richard.rubin@wsj.com

Credit: By Richard Rubin

Subject: Executive compensation; Taxes; Agreements; Tax rates; Restricted stock

Location: United States--US

People: Trump, Donald J

Company / organization: Name: Internal Revenue Service--IRS; NAICS: 921130

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Jan 11, 2017

Section: US

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1857010502

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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Active in Sanctions Debates, but Rex Tillerson Denies Lobbying; Testimony may reflect view that public comments and private efforts don't constitute a formal effort to lobby against certain sanctions

Author: Tau, Byron; Olson, Bradley; Ballhaus, Rebecca

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]12 Jan 2017: n/a.

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Abstract:

Yet, Rex Tillerson, the former CEO of Exxon Mobil, argued forcefully Wednesday that neither he nor his former company ever lobbied against U.S. sanctions on Russia or Iran, a statement that a number of senators aggressively questioned in a marathon day of confirmation hearings over his appointment to serve in the incoming administration of President-elect Donald Trump as secretary of State.

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WASHINGTON--Oil giant Exxon Mobil Corp. has a long history of advocacy and engagement around issues related to international sanctions, including membership in a Washington-based trade group that strongly opposes unilateral U.S. sanctions against foreign countries and entities.

Yet, Rex Tillerson, the former CEO of Exxon Mobil, argued forcefully Wednesday that neither he nor his former company ever lobbied against U.S. sanctions on Russia or Iran, a statement that a number of senators aggressively questioned in a marathon day of confirmation hearings over his appointment to serve in the incoming administration of President-elect Donald Trump as secretary of State.

"I never lobbied against the sanctions. To my knowledge, Exxon Mobil never lobbied against the sanctions. Exxon Mobil participated in understanding how the sanctions were going to be constructed. And was asked and provided information regarding how those might impact American business interest," Mr. Tillerson said to the committee in a hearing that lasted most of Wednesday.

His testimony may reflect his interpretation that public comments in opposition to certain sanctions and private efforts to weaken or scale them back don't constitute a formal effort to lobby against them.

However, his company and its outside consultants have filed more than 30 lobbying disclosure reports, listing sanctions issues in Iran, Russia and Libya as among its issues. Those reports didn't specify whether Exxon supported or opposed the various sanctions efforts--but the company in financial disclosures and public statements by executives like Mr. Tillerson have indicated that sanctions often hurt the company's business interests.

In addition, the company is a dues-paying member of USA*Engage, a corporate-funded advocacy group that opposes U.S. sanctions and has called on lawmakers to reject unilateral efforts aimed at punishing Iran, Russia, Myanmar and Cuba, among others.

At issue is a policy question about the use of sanctions, a major tool of U.S. diplomacy that gives the executive branch the ability to deter, compel or punish states, foreign individuals and groups. In Wednesday's hearing, Mr. Tillerson expressed concerns about the idea of sanctions, which he says can sometimes punish U.S. businesses.

"It's important to acknowledge that when sanctions are imposed, they by their design are going to harm American business. That's the idea--it's to disrupt America's business engagement in whatever country's being targeted for sanctions," he said.

Exxon spent $8.8 million on lobbying the federal government in the first three quarters of 2016, making it the top lobbyist in the oil-and-gas industry, according to a Center for Responsive Politics analysis of the most recent disclosures.

Exxon has spent years lobbying the State Department on trade and energy issues, including U.S. relations with Russia. In 2014, the company lobbied the department over congressional legislation on sanctions against Russia, according to federal lobbying disclosures. The bill wasn't approved by Congress.

The company also sought to have some of its continuing projects exempted from sanctions, a request that would have mirrored European restrictions on business in Russia after the country seized Ukrainian territory in 2014. The Obama administration denied the request, and Exxon had to withdraw from some operations in the country, according to people familiar with the matter.

Exxon sought permission for an extension to finish drilling a well, because of safety concerns, a request that was granted. Once Exxon exited, Russia announced that the well was a near-billion-barrel-discovery.

Exxon has said its losses due to sanctions would amount to $1 billion, but the company sees some of its work in Russia , such as in the Arctic, as on "pause" because of the restrictions.

A spokeswoman for USA*Engage confirmed that Exxon is a member of the advocacy group, which is part of the National Foreign Trade Council--a pro-free trade industry group funded by major corporations. The group doesn't oppose all sanctions and has backed sanctions in conjunction with other international partners--in part to ensure that U.S. businesses aren't restricted while foreign companies remain free to do business with the targets of the sanction.

"Exxon Mobil regularly engages with lawmakers and others to discuss the potential impact of sanctions and to express our view that sanctions should treat American companies fairly. We do not express an opinion as to whether or not sanctions should be imposed; that is a decision for policy makers," said a spokesman for the company.

In Washington, corporations routinely channel their more controversial lobbying practices through trade associations to give themselves "plausible deniability," said Lisa Gilbert, director of Public Citizen's Congress Watch division.

The practice "gives them the ability to say one thing in their mission statements or to their shareholders, and straightforwardly support the policies out the other side of their mouths," Ms. Gilbert said.

Write to Byron Tau at byron.tau@wsj.com , Bradley Olson at Bradley.Olson@wsj.com and Rebecca Ballhaus at Rebecca.Ballhaus@wsj.com

* Trump Nominee Rex Tillerson Suggests Tough Line on Russia, but Won't Commit on Sanctions

* Recap: Tillerson Confirmation Hearing

* Q&A: What to Know About Rex Tillerson's Ties to Russia

Credit: By Byron Tau, Bradley Olson and Rebecca Ballhaus

Subject: Sanctions; Advocacy; Bills; Lobbying

Location: United States--US Iran Russia

People: Trump, Donald J

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publicationtitle: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Jan 12, 2017

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1857509379

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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Marco Rubio's Vote Is Key for Secretary of State Nominee; Florida senator hasn't decided whether to back former Exxon CEO Rex Tillerson

Author: Tau, Byron

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Jan 2017: n/a.

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Abstract: None available.

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WASHINGTON--Republican Sen. Marco Rubio has become the central figure in the Senate confirmation drama over President-elect Donald Trump's choice to lead the State Department, emerging as the key vote on confirming Rex Tillerson to the nation's top diplomatic post.

A trio of Republican senators have expressed deep reservations about Mr. Tillerson, the former Exxon Mobil Corp. chief executive. In addition to Mr. Rubio of Florida, they are Sens. John McCain of Arizona and Lindsey Graham of South Carolina. The three have raised concerns about Mr. Tillerson's personal and business relationships with senior figures in the Russian government, an especially sensitive topic due to the U.S. intelligence assessment that the Kremlin interfered with the nation's presidential election.

All three remain undecided on whether to support Mr. Tillerson after a marathon, eight-hour hearing with the former CEO on Capitol Hill this week.

But no senator is more critical to Mr. Tillerson's fate than Mr. Rubio, who sits on the Foreign Relations Committee, which will vote on whether to support the nomination. Republicans have a one-vote advantage on the panel, meaning that Mr. Rubio may be crucial to moving Mr. Tillerson's nomination to the floor with a recommendation that he be confirmed for the job.

Mr. Rubio has remained tight-lipped about his intentions. He has said he has additional questions for Mr. Tillerson as part of the vetting process and would withhold comment until he has come to a decision.

"We're just going to continue to go through the process, and we'll make a decision soon," said Mr. Rubio on Capitol Hill this week after the confirmation hearing.

A committee vote on Mr. Tillerson's nomination could come as soon as next week. Messrs. Graham and McCain also say that they are withholding judgment, but that they are concerned about Mr. Tillerson's views on Russia and the broader direction of the Trump administration's proposed detente with Moscow. Mr. Trump has proposed improving relations with Russian President Vladimir Putin, a stance that is at odds with many Republicans in Congress.

In a television appearance this week, Mr. Graham said the Tillerson nomination was "salvageable," with the potential to win his vote. "I just still haven't made up my mind," Mr. McCain told reporters. The senator has said he is concerned about Mr. Tillerson's relationships with senior members of the Russian government.

Mr. Rubio subjected Mr. Tillerson to several rounds of withering questioning, with a special focus on the issue of Russia, economic sanctions and human rights. In one exchange, Mr. Rubio asked whether Mr. Putin was a war criminal, citing the Russian military's actions in Syria as the reason for the question.

Mr. Tillerson demurred, saying: "Those are very, very serious charges to make, and I would want to have much more information before reaching a conclusion."

There is enormous pressure within the Senate Republican caucus to start the Trump administration with a series of smooth confirmation hearings and votes. But Republicans have a thin margin for error, holding 52 out of 100 seats in the Senate.

GOP leaders have signaled that the confirmation of Mr. Tillerson, as well as all of Mr. Trump's other nominees, is a top priority. No cabinet nominee has been rejected by the Senate since 1989, though several have withdrawn.

Mr. Rubio's willingness to withhold his support comes is an indication that he has more room for political independence. "I think in his view he's doing what the Senate is supposed to do--to provide advice and consent on presidential nominees," said Ryan Williams, a Republican strategist who expects Mr. Tillerson to be ultimately confirmed.

"He's just been re-elected, with six years in front of him in the Senate," said Mr. Williams. "I think he feels liberated to approach decisions in his second term without the same political considerations. He's liberated to do what he thinks is the right thing without having to think about running for president or for re-election."

Many Democrats have spoken out about their concerns about Mr. Tillerson, though it is possible he will draw some Democratic support in the final vote tally. He could also win Democratic support in the committee, offsetting the potential loss of Mr. Rubio's vote.

"I will oppose the nomination of Rex Tillerson as secretary of state. He has a notable record of business success and a laudable commitment to civic affairs. But he did not demonstrate the awareness, judgment or independence I expect from our nation's chief diplomat," said Sen. Tim Kaine (D., Va.), who also sits on the Foreign Relations panel.

A committee decision not to approve Mr. Tillerson wouldn't block his nomination from moving to the Senate floor, though such a development is rare. Another possible pathway is that Senate Republican leadership could bypass the committee entirely and bring Mr. Tillerson directly to the floor--another extremely rare procedural maneuver that nevertheless remains available to Senate leadership.

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Credit: By Byron Tau

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Jan 13, 2017

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1858182225

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1858182225?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Mobil Expands Permian Basin Footprint in Deal Worth More Than $5.6 Billion; Company joins other oil firms in race to build up drilling portfolios in West Texas and New Mexico

Author: Olson, Bradley; Hufford, Austen

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Jan 2017: n/a.

ProQuest document link

Abstract:

Exxon Mobil Corp. is the latest company to expand in Texas' red-hot Permian basin, announcing a deal Tuesday to buy companies owned by the Bass family for $5.6 billion in stock and up to $1 billion in additional payments.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. is the latest company to expand in Texas' red-hot Permian basin, announcing a deal Tuesday to buy companies owned by the Bass family for $5.6 billion in stock and up to $1 billion in additional payments.

Once a dominant player in the region, Exxon is joining other oil firms in a race to build up drilling portfolios in West Texas and New Mexico . Even as crude prices hover slightly above $50 a barrel, about half the level of three years ago, the value of land in the Permian basin has skyrocketed to records amid a flurry of land buying as companies gear up for a rebound.

With the purchase, newly installed Exxon Chairman and Chief Executive Darren Woods will nearly double the oil and gas the company holds in the area to the equivalent of 6 billion barrels, the company said. While Exxon had among the largest positions in the Permian basin before the deal, it was far smaller than that of peers including Chevron Corp. and Occidental Petroleum Corp.

The Exxon deal brings acquisitions in the area to nearly $10 billion in just the past two days. On Monday Noble Energy Inc. said it would pay $2.7 billion to buy West Texas producer Clayton Williams Energy Inc. And on Tuesday, WPX Energy Inc. announced a $775 million deal to boost its operations. The companies paid an average of about $30,000 an acre or less, values that are lower than records but still high compared with historical averages.

The deals, which analysts expect will continue, show the extent to which U.S. companies are betting on Texas as they seek to return to growth after more than two years of shrinking amid falling prices.

Crude has begun to stabilize above $50 a barrel after the Organization of the Petroleum Exporting Countries elected to cut output late last year. Many U.S. drillers have begun to put rigs back to work in recent months, particularly in West Texas. U.S. oil rose about 1.2% to $52.97 Tuesday morning.

Exxon is buying companies owned by the Bass family, which is closely associated with Fort Worth, Texas and whose fortune was built by legendary wildcatter Sid Richardson, including mammoth discoveries in West Texas that date to the 1930s and 1940s. In the past 15 years, the family has sold off much of what remained of the empire Mr. Richardson amassed.

The operations, which include the operating entity Bopco, may hold as much as 3.4 billion barrels and about 275,000 acres, according to Exxon, which highlighted a "highly prolific, oil-prone" section in New Mexico. The company plans to use the position to drill longer horizontal wells, a technique many have adopted in the crash that reduces costs by extending the reach of drilling operations.

"We can drill the longest wells in the Permian basin, reducing development costs and increasing reserve capture," Mr. Woods said. He took over the helm at Exxon on Jan. 1 after his predecessor Rex Tillerson was nominated to become President-elect Donald Trump's secretary of state.

Companies have been paying never-before-seen levels for drillable acres in the Permian Basin. Players in the space say land there has layers of oil-bearing rock which are stacked on top of each other and hold substantial oil reserves that can be tapped in tandem, making each acre more valuable than in a typical oil field.

Some in the industry have voiced concerns that the high prices indicate a bubble is building up in the region. More than a dozen people who responded to survey questions posed recently by the Federal Reserve Bank of Dallas said they believed the acreage was overvalued .

"The Permian transactions are approaching price multiples associated with a bubble or a Ponzi scheme," one respondent wrote.

Write to Bradley Olson at Bradley.Olson@wsj.com and Austen Hufford at austen.hufford@wsj.com

Credit: By Bradley Olson and Austen Hufford

Subject: Oil fields; Oil wells

Location: United States--US West Texas New Mexico

People: Woods, Darren

Company / organization: Name: WPX Energy; NAICS: 211111; Name: Clayton Williams Energy Inc; NAICS: 211111, 237210; Name: Noble Energy Inc; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: Occidental Petroleum Corp; NAICS: 324110, 211111; Name: Chevron Corp; NAICS: 324110, 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Jan 17, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1858966492

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1858966492?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Business News: Exxon Joins Land Rush In Red-Hot Southwest --- Oil company commits as much as $6.6 billion to Permian Basin in Texas and New Mexico

Author: Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]18 Jan 2017: B.3.

ProQuest document link

Abstract:

Exxon Mobil Corp. is the latest company to expand in the red-hot Permian Basin in Texas and New Mexico, announcing a deal Tuesday to buy companies owned by the Bass family for $5.6 billion in stock and up to $1 billion in additional payments.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. is the latest company to expand in the red-hot Permian Basin in Texas and New Mexico, announcing a deal Tuesday to buy companies owned by the Bass family for $5.6 billion in stock and up to $1 billion in additional payments.

Once a dominant player in the region, Exxon is joining other oil firms in a race to build up drilling portfolios in West Texas and New Mexico. Even as crude prices hover slightly above $50 a barrel, about half the level of three years ago, the value of land in the Permian basin has skyrocketed to records amid a flurry of land buying as companies gear up for a rebound.

With the purchase, newly installed Exxon Chairman and Chief Executive Darren Woods will nearly double the oil and gas the company holds in the area to the equivalent of 6 billion barrels, the company said. While Exxon had among the largest positions in the Permian basin before the deal, it was far smaller than that of peers including Chevron Corp. and Occidental Petroleum Corp.

The Exxon deal brings acquisitions in the area to more than $10 billion in just the past week. On Monday, Noble Energy Inc. said it would pay $2.7 billion to buy West Texas producer Clayton Williams Energy Inc.

Exxon paid about $23,500 an acre including potential future payments, according to Jefferies & Co., about 25% less than the average price paid in the past six months. Exxon's ability to use shares in treasury to buy assets may be attractive to sellers based on potential tax advantages, according to Jefferies analysts.

The string of deals, which analysts expect will continue, shows the extent to which U.S. companies are betting on Texas as they seek to return to growth after more than two years of shrinking amid falling prices.

Crude began to stabilize above $50 a barrel after the Organization of the Petroleum Exporting Countries elected to cut output late last year. Many U.S. drillers have begun to put rigs back to work in recent months, particularly in West Texas. U.S. oil was roughly flat on Tuesday, closing at $52.48.

Exxon is buying companies owned by the Bass family, which is closely associated with Fort Worth, Texas, and whose fortune was built by legendary wildcatter Sid Richardson, including mammoth discoveries in West Texas that date to the 1930s and 1940s. In the past 15 years, the family has sold off much of what remained of the empire Mr. Richardson amassed.

The operations, which include the operating entity Bopco, cover about 275,000 acres and may hold as much as 3.4 billion barrels of oil and gas, according to Exxon, which highlighted a "highly prolific, oil-prone" section in New Mexico.

The company plans to use the position to drill longer horizontal wells, a technique many have adopted in the crash and that reduces costs by extending the reach of drilling operations.

"We can drill the longest wells in the Permian basin, reducing development costs and increasing reserve capture," Mr. Woods said. He took over the helm at Exxon on Jan. 1 after predecessor Rex Tillerson was nominated to become President-elect Donald Trump's secretary of state.

---

Austen Hufford contributed to this article.

Credit: By Bradley Olson

Subject: Drilling; Expansion; Oil wells

Location: West Texas New Mexico Permian Basin

People: Woods, Darren

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2017

Publication date: Jan 18, 2017

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1859426930

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1859426930?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Rex Tillerson Clears Another Hurdle for Secretary of State Position; Former Exxon CEO's nomination will be considered next by full the Senate

Author: Tau, Byron

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Jan 2017: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

WASHINGTON--Despite lingering concerns from some Republicans, secretary of state nominee Rex Tillerson cleared a key procedural hurdle on Monday, all but ensuring he will be approved as the nation's top diplomat.

Mr. Tillerson, the former chief executive of Exxon Mobil Corp., won a favorable recommendation in an 11-to-10 vote along party lines from the Senate Committee on Foreign Relations on Monday afternoon. His nomination will be considered by the full Senate in the coming days, where he is expected to be confirmed.

Overcoming a rocky confirmation hearing earlier this month where he was grilled by members of both parties, Mr. Tillerson won the support of three leading foreign-policy voices within his party who had wavered for weeks on whether to support him over their concerns about his ties to the Russian government.

As head of Exxon Mobil, Mr. Tillerson had cultivated deep business ties to senior figures in the Russia government --prompting tough questions from both Democrats and Republicans during his confirmation hearing. His former company's lobbying on sanctions issues also came under scrutiny.

But congressional resistance to Mr. Tillerson essentially evaporated over the weekend, as other Senate Republicans who had been undecided said they would support him--all but ensuring he will win enough votes in the Senate. Republicans Lindsey Graham of South Carolina and John McCain of Arizona both said on Sunday they would support Mr. Tillerson .

Sen. Marco Rubio of Florida also said he would support Mr. Tillerson . No vote was more important to Mr. Tillerson's successful confirmation than that of Mr. Rubio, who occupies a key seat on the Senate Foreign Relations Committee that will vote Monday on the nomination.

Republicans have a one-vote advantage on the panel, meaning that Mr. Rubio's support was seen as crucial to moving Mr. Tillerson's nomination to the floor with a recommendation that he be confirmed for the job. The full U.S. Senate still could have confirmed Mr. Tillerson without approval of a majority of the panel, but such a procedure is extremely rare.

"Given the uncertainty that exists both at home and abroad about the direction of our foreign policy, it would be against our national interests to have this confirmation unnecessarily delayed or embroiled in controversy. Therefore, despite my reservations, I will support Mr. Tillerson's nomination in committee and in the full Senate," Mr. Rubio, a Florida Republican, said in a statement posted to Facebook on Monday.

During the hearing, Mr. Rubio also expressed concern about whether Mr. Tillerson and the new Trump administration would take an aggressive enough line against Russia. President Donald Trump has indicated that he believes the U.S. should pursue improved relations with Moscow.

No Democrats supported Mr. Tillerson in the committee vote, but he could win some Democratic support when the full Senate considers his nomination. Sen. Ben Cardin of Maryland, the senior Democrat on the panel, said in a statement Monday that he would oppose Mr. Tillerson over some of the former CEO's comments during his confirmation hearings.

"After long and careful consideration, I believe Mr. Tillerson's demonstrated business orientation and his responses to questions during the confirmation hearing could compromise his ability as Secretary of State to forcefully promote the values and ideals that have defined our country and our leading role in the world for more than 200 years," Mr. Cardin said.

Write to Byron Tau at byron.tau@wsj.com

Credit: By Byron Tau

Subject: Nominations; Hearings & confirmations; Bills; International relations; Political appointments; Congressional committees

Location: South Carolina Russia Arizona Florida

People: McCain, John Graham, Lindsey

Company / organization: Name: Senate-Foreign Relations, Committee on; NAICS: 921120; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Senate; NAICS: 921120; Name: Republican Party; NAICS: 813940; Name: Democratic Party; NAICS: 813940

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Jan 23, 2017

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1861643707

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861643707?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-01-23

Database: The Wall Street Journal

Rex Tillerson Clears Another Hurdle for Secretary of State Position; Former Exxon CEO's nomination will be considered next by the full Senate

Author: Tau, Byron

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Jan 2017: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

WASHINGTON--Despite lingering concerns from some Republicans, secretary of state nominee Rex Tillerson cleared a key procedural hurdle on Monday, all but ensuring he will be approved as the nation's top diplomat.

Mr. Tillerson, the former chief executive of Exxon Mobil Corp., won a favorable recommendation in an 11-to-10 vote along party lines from the Senate Committee on Foreign Relations on Monday afternoon. His nomination will be considered by the full Senate in the coming days, where he is expected to be confirmed.

Overcoming a rocky confirmation hearing earlier this month where he was grilled by members of both parties, Mr. Tillerson won the support of three leading foreign-policy voices within his party who had wavered for weeks on whether to support him over their concerns about his ties to the Russian government.

As head of Exxon Mobil, Mr. Tillerson had cultivated deep business ties to senior figures in the Russia government --prompting tough questions from both Democrats and Republicans during his confirmation hearing. His former company's lobbying on sanctions issues also came under scrutiny.

But congressional resistance to Mr. Tillerson essentially evaporated over the weekend, as other Senate Republicans who had been undecided said they would support him--all but ensuring he will win enough votes in the Senate. Republicans Lindsey Graham of South Carolina and John McCain of Arizona both said on Sunday they would support Mr. Tillerson .

Sen. Marco Rubio of Florida also said he would support Mr. Tillerson . No vote was more important to Mr. Tillerson's successful confirmation than that of Mr. Rubio, who occupies a key seat on the Senate Foreign Relations Committee that will vote Monday on the nomination.

Republicans have a one-vote advantage on the panel, meaning that Mr. Rubio's support was seen as crucial to moving Mr. Tillerson's nomination to the floor with a recommendation that he be confirmed for the job. The full U.S. Senate still could have confirmed Mr. Tillerson without approval of a majority of the panel, but such a procedure is extremely rare.

"Given the uncertainty that exists both at home and abroad about the direction of our foreign policy, it would be against our national interests to have this confirmation unnecessarily delayed or embroiled in controversy. Therefore, despite my reservations, I will support Mr. Tillerson's nomination in committee and in the full Senate," Mr. Rubio, a Florida Republican, said in a statement posted to Facebook on Monday.

During the hearing, Mr. Rubio also expressed concern about whether Mr. Tillerson and the new Trump administration would take an aggressive enough line against Russia. President Donald Trump has indicated that he believes the U.S. should pursue improved relations with Moscow.

No Democrats supported Mr. Tillerson in the committee vote, but he could win some Democratic support when the full Senate considers his nomination. Sen. Ben Cardin of Maryland, the senior Democrat on the panel, said in a statement Monday that he would oppose Mr. Tillerson over some of the former CEO's comments during his confirmation hearings.

"After long and careful consideration, I believe Mr. Tillerson's demonstrated business orientation and his responses to questions during the confirmation hearing could compromise his ability as Secretary of State to forcefully promote the values and ideals that have defined our country and our leading role in the world for more than 200 years," Mr. Cardin said.

Write to Byron Tau at byron.tau@wsj.com

Credit: By Byron Tau

Subject: Nominations; Hearings & confirmations; Bills; International relations; Political appointments; Congressional committees

Location: South Carolina Russia Arizona Florida

People: McCain, John Graham, Lindsey

Company / organization: Name: Senate-Foreign Relations, Committee on; NAICS: 921120; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Senate; NAICS: 921120; Name: Republican Party; NAICS: 813940; Name: Democratic Party; NAICS: 813940

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Jan 24, 2017

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1861666741

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1861666741?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-01-23

Database: The Wall Street Journal

Exxon Profit Tumbles on Charge; Revenue Rises; Oil giant posts first increase in revenue after nine quarters of declines; accounting probe looms

Author: Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 Jan 2017: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

Exxon Mobil Corp. said Tuesday it wrote down the value of more than $2 billion in U.S. assets, departing from decades-long practice amid an investigation by securities regulators, as the world's largest publicly traded oil company posted its lowest yearly earnings in 20 years.

The move follows an investigation begun by the U.S. Securities and Exchange Commission in August over Exxon's accounting practices and how the company values its future oil and gas wells, or reserves. The probe also sought information about how Exxon weighs the potential impact that climate-change regulations could have on its business, The Wall Street Journal reported in October.

An SEC spokesman declined to comment on Tuesday. Exxon has said it is cooperating with the probe and that its financial reporting meets all legal and accounting standards.

Irving, Texas-based Exxon reported a 40% drop in fourth-quarter earnings, and annual 2016 profit of $7.8 billion--the company's lowest since 1996, three years before it grew immensely with an $82 billion deal to buy rival Mobil Corp.

Irving, Texas-based Exxon reported a 40% drop in fourth-quarter earnings, as low oil and natural-gas prices also took a toll on the company. Annual 2016 profit totaled $7.8 billion--Exxon's lowest since 1996, three years before the company grew immensely with an $82 billion deal to buy rival Mobil Corp.

Exxon was alone among major energy companies in not having recognized on its books any reduction in the value of its reserves, a development that had become fairly routine for peers as prices crashed in recent years. Since 2014, other U.S. companies have slashed the value of their assets by more than $200 billion, according to S&P Global Market Intelligence.

"The impairment appears a bit light given the company's resources," said Brian Youngberg, an energy analyst with Edward Jones in St. Louis. Exxon shares fell 1.1% to $83.89 on Tuesday, while peers such as Royal Dutch Shell PLC either rose or held roughly flat.

Exxon wrote down natural-gas assets in the Rocky Mountains. The company purchased shale producer XTO Energy for $31 billion in 2010 during the heart of a drilling boom that would send natural-gas prices careening downward within a few years. The price, which averaged $5.35 per million British thermal units when the deal was announced late in 2009, is now about $3.23.

The SEC investigation initially sprung out of a separate examination begun in late 2015 by New York Attorney General Eric Schneiderman into Exxon's history of advocacy about global warming and how the company has communicated with its investors on the matter. Exxon, which has denied wrongdoing and characterized that probe as politically motivated, submitted more than one million pages of documents to the New York Democrat, most of which have been shared with the SEC, according to people familiar with the matter.

Exxon hadn't booked a decline in the value of its assets since at least 1990. This is due in part to the company's practice of being more conservative when initially recognizing the value of new oil and gas that it discovers, according to analysts and people familiar with its accounting.

It is also related to a management view that it is better to place a high burden on executives to ensure that projects can work at lower prices than to write down their value. The company's senior leaders wanted to avoid write-downs because in accounting terms, they have the effect of making the company's investments appear more profitable, according to people familiar with Exxon's practices.

"We don't do write-downs," former Chief Executive Rex Tillerson told trade publication Energy Intelligence in 2015. "We are not going to bail you out by writing it down. That is the message to our organization."

For the October-to-December period, profit fell to $1.68 billion, or 41 cents a share, from $2.78 billion. Analysts polled by Thomson Reuters were expecting 70 cents a share. Revenue increased for the first time in more than two years, rising 2% to $61 billion.

Debt levels surged to the highest point in company history at the end of last year as Exxon's operations failed to generate enough cash to pay for new investments and dividends. Although Exxon carries relatively low debt relative to its size, the increase in borrowing prompted Standard & Poor's last year to strip the company of the perfect triple-A credit rating it had held since the Great Depression.

Exxon also signaled Tuesday that it is likely to recognize that as much as 4.6 billion barrels of its reserves, predominantly in Canada's oil sands, aren't profitable to produce, according to SEC rules. The reserve losses might be offset somewhat by the company's new finds last year, Jeff Woodbury, Exxon's vice president of investor relations, told analysts Tuesday. Those figures would be finalized and released in the coming weeks, he said.

Although Exxon might no longer qualify those reserves as "proved" based on SEC rules, Mr. Woodbury said the company wouldn't alter its operations or change how it manages those assets.

There are separate processes and rules that govern how oil-and-gas companies book reserves to assure investors that they are finding new sources of future production and how they value them on company financial statements. The SEC requires companies to evaluate their future prospects based on the average price of the previous year, in this case about $43 a barrel. That is a 15% drop from 2015.

Recognizing how much those reserves are worth is separately overseen by the Financial Accounting Standards Board, an independent group that sets accounting standards for U.S. public companies. As oil and gas producers spend money drilling new wells, those expenses can be capitalized as an asset. But when expected future cash flow from the reserves is no longer greater than their so-called carrying value, which relates to the amount that was capitalized, the rules indicate that a write-down is needed.

Thus, while the Canadian reserve losses didn't result in a write-down immediately, there is still a chance that could happen next year. According to the accounting rules, such a determination would depend in part on Exxon's view of future prices in coming decades.

Last year, the company reduced its reserves by the equivalent of more than 800 million barrels, most of which stemmed from U.S. natural-gas assets. The $2 billion impairment this year was also tied to U.S. natural-gas wells.

Imperial Oil, an Exxon-controlled company that operates in Canada, reported that its oil-production business posted a profit of about $80 million. If the company's oil-sands business continues to operate profitably, a write-down might not be needed.

Exxon Chief Executive Darren Woods also plans a spending increase this year, making the company an anomaly among major oil firms that mostly plan to continue making cuts. Exxon plans to spend about $22 billion in 2017, about a 15% increase from last year. Other companies such as Chevron Corp. are continuing to reduce their investment levels even amid a modest oil-price rebound.

Mr. Woods, who took the helm in January from Mr. Tillerson after the longtime Exxon leader was nominated by President Donald Trump to serve as U.S. secretary of state, pointed to the prolonged downturn in commodity prices as well as the impairment charge for the decline in earnings.

Anne Steele contributed to this article.

Write to Bradley Olson at Bradley.Olson@wsj.com

Related Coverage

* Shell to Sell U.K. North Sea Oil Fields for $3.8 Billion

Credit: By Bradley Olson

Subject: Writedowns; Financial performance; Corporate profits; Stock prices; Natural gas prices; Energy industry; Executives; Accounting

Location: United States--US Rocky Mountains

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Jan 31, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1863063875

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863063875?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Takes a $2 Billion Charge --- Oil slump results in lowest annual profit in 20 years; company dogged by SEC Probe

Author: Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]01 Feb 2017: B.1.

ProQuest document link

Abstract:

Exxon's lowest since 1996, three years before the company grew immensely with an $82 billion deal to buy rival Mobil Corp. Exxon was alone among major energy companies in not having recognized on its books any reduction in the value of its reserves, a development that had become fairly routine for peers as prices crashed in recent years. Since 2014, other U.S. companies have slashed the value of their assets by more than $200 billion, according to S&P Global Market Intelligence.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. said Tuesday it wrote down the value of more than $2 billion in U.S. assets, departing from decadeslong practice amid an investigation by securities regulators, as the world's largest publicly traded oil company posted its lowest yearly earnings in 20 years.

The move follows an investigation begun by the U.S. Securities and Exchange Commission in August over Exxon's accounting practices and how the company values its future oil and gas wells, or reserves. The probe also sought information about how Exxon weighs the potential impact that climate-change regulations could have on its business, The Wall Street Journal reported in October.

An SEC spokesman declined to comment Tuesday. Exxon has said it is cooperating with the probe and that its financial reporting meets all legal and accounting standards.

Irving, Texas-based Exxon reported a 40% drop in fourth-quarter earnings, as low oil and natural-gas prices also took a toll. Annual 2016 profit totaled $7.8 billion -- Exxon's lowest since 1996, three years before the company grew immensely with an $82 billion deal to buy rival Mobil Corp.

Exxon was alone among major energy companies in not having recognized on its books any reduction in the value of its reserves, a development that had become fairly routine for peers as prices crashed in recent years. Since 2014, other U.S. companies have slashed the value of their assets by more than $200 billion, according to S&P Global Market Intelligence.

"The impairment appears a bit light given the company's resources," said Brian Youngberg, an energy analyst with Edward Jones in St. Louis. Exxon shares fell 1.1% to $83.89 on Tuesday, while peers such as Royal Dutch Shell PLC either rose or held roughly flat.

Exxon wrote down natural-gas assets in the Rocky Mountains. The company purchased shale producer XTO Energy for $31 billion in 2010 during the heart of a drilling boom that would send natural-gas prices careening downward within a few years. The price, which averaged $5.35 per million British thermal units when the deal was announced late in 2009, is now about $3.23.

The SEC investigation initially sprung out of a separate examination begun in late 2015 by New York Attorney General Eric Schneiderman into Exxon's history of advocacy about global warming and how the company has communicated with its investors on the matter. Exxon, which has denied wrongdoing and characterized that probe as politically motivated, submitted more than 1 million pages of documents to the New York Democrat, most of which have been shared with the SEC, according to people familiar with the matter.

Exxon hadn't booked a decline in the value of its assets since at least 1990. This is due in part to the company's practice of being more conservative when initially recognizing the value of new oil and gas that it discovers, according to analysts and people familiar with its accounting.

It is also related to a management view that it is better to place a high burden on executives to ensure that projects can work at lower prices than to write down their value. The company's senior leaders wanted to avoid write-downs because in accounting terms, they have the effect of making the company's investments appear more profitable, according to people familiar with Exxon's practices.

"We don't do write-downs," former Chief Executive Rex Tillerson told trade publication Energy Intelligence in 2015. "We are not going to bail you out by writing it down. That is the message to our organization."

For the October-to-December period, profit fell to $1.68 billion, or 41 cents a share, from $2.78 billion. Analysts polled by Thomson Reuters were expecting 70 cents a share. Revenue increased for the first time in over two years, rising 2% to $61 billion.

Exxon also signaled Tuesday that it is likely to recognize that as much as 4.6 billion barrels of its reserves, mostly in Canada's oil sands, aren't profitable to produce, according to SEC rules. The reserve losses might be offset somewhat by new finds last year, Jeff Woodbury, Exxon's vice president of investor relations, told analysts Tuesday.

Although Exxon might no longer qualify those reserves as "proved" based on SEC rules, Mr. Woodbury said the company wouldn't alter its operations or change how it manages those assets.

There are separate processes and rules that govern how oil-and-gas companies book reserves to assure investors that they are finding new sources of future production and how they value them. The SEC requires companies to evaluate their future prospects based on the average price of the previous year, in this case about $43 a barrel. That is a 15% drop from 2015.

Recognizing how much those reserves are worth is separately overseen by the Financial Accounting Standards Board, an independent group that sets accounting standards for U.S. public companies. As oil and gas producers spend money drilling new wells, those expenses can be capitalized as an asset. But when expected future cash flow from the reserves is no longer greater than their so-called carrying value, which relates to the amount that was capitalized, the rules indicate that a write-down is needed.

Thus, while the Canadian reserve losses didn't result in a write-down immediately, there is still a chance that could happen next year. According to the accounting rules, such a determination would depend in part on Exxon's view of future prices.

Exxon Chief Executive Darren Woods also plans a spending increase this year, making the company an anomaly among major oil firms that mostly plan to continue making cuts. Exxon plans to spend about $22 billion in 2017, up about 15% from last year. Other companies such as Chevron Corp. are continuing to reduce their investment levels even amid a modest oil-price rebound.

---

Anne Steele contributed to this article.

View Image - Enlarge this image.

Credit: By Bradley Olson

Subject: Financial performance; Energy industry; Writedowns; Company reports

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2017

Publication date: Feb 1, 2017

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1863137661

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863137661?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Rex Tillerson Wins Senate Confirmation to Be Secretary of State; Former Exxon Mobil chief overcame concerns about close ties with Russia's Putin

Author: Schwartz, Felicia

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Feb 2017: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

WASHINGTON--The U.S. Senate on Wednesday confirmed former Exxon Mobil Corp. CEO Rex Tillerson to be secretary of state, sending him to the State Department as career officials mount a formal protest against President Donald Trump's immigration initiative and as the U.S. faces a complex set of foreign-policy challenges.

Mr. Tillerson won over skeptical Republicans, including Sens. John McCain of Arizona and Marco Rubio of Florida, but continued to face Democratic opposition. He was confirmed on a 56-43 vote.

Senators had voiced concern about the close relationship Mr. Tillerson forged with Russian President Vladimir Putin while he was at Exxon, and his unwillingness in testimony to recommit the U.S. to Russia sanctions . Democrats also were critical of his views on climate change.

Mr. Tillerson's confirmation was the most contentious in at least 50 years, coming with the support of only three Democrats--Sens. Heidi Heitkamp (D., N.D.), Joe Manchin (D., W.Va.), Mark Warner (D., Va.)--and Angus King, a Maine independent who caucuses with the Democrats. The second closest vote in recent memory, by comparison, was for Condoleezza Rice, who won confirmation 85-13 in 2005.

Now, the former business executive, 64 years old, will have to move quickly to get senior staff in place, calm hundreds of career officials who have formally registered their concerns about Mr. Trump's immigration and refugee policies and carve out a place for himself in the Trump administration's foreign-policy apparatus, which so far has been dominated by White House aides Steve Bannon and Jared Kushner.

The immediate challenges Mr. Tillerson will confront when he enters office, said current and former U.S. officials working on foreign policy, include addressing the rift with Mexico over Mr. Trump's plans to build a border wall ; implementing and dealing with a temporary immigration ban on seven Muslim-majority countries intended to protect against terrorism; and possibly implementing Mr. Trump's suggestion to relocate the U.S. embassy in Israel to Jerusalem from Tel Aviv.

In the longer term, Mr. Tillerson will be asked to make good on Mr. Trump's pledge to drastically recast U.S. relations with major global powers Russia and China, to help intensify the war against the terrorist organization Islamic State and revisit the landmark nuclear agreement the Obama administration forged with Iran in 2015.

Mr. Tillerson has begun the process of setting up his own State Department team.

He is expected to name Margaret Peterlin, a former Navy officer and senior official at the Patent and Trademark Office during the Bush administration, as his chief of staff, according to people familiar with the deliberations.

Paula Dobriansky, a former senior State Department official in the George W. Bush administration, and Elliott Abrams, a former National Security Council aide to Mr. Bush, are among candidates to be deputy secretary of state.

Michael Dougherty, who has worked at Raytheon Co. and at the Department of Homeland Security, is expected to be nominated to take the helm of the Consular Affairs Bureau. Rob Wasinger, a former Republican Virginia congressional candidate in 2014, is expected to take on a senior role, the people familiar with the deliberations said.

Jennifer Hazelton, who led Mr. Trump's campaign communications in Georgia and had previously worked at CNN and Fox before moving to politics, is expected to be Mr. Tillerson's press secretary.

The staffing decisions aren't yet final and could change, the people familiar with the deliberations said.

The 40-year Exxon veteran has been at the State Department several times for briefings over the past two weeks and had lunch with Mr. Trump on Wednesday.

Republicans welcomed Mr. Tillerson's confirmation and said they looked forward to working with him.

"Mr. Tillerson led a global enterprise with 75,000 employees, possesses deep relationships around the world and understands the critical role of U.S. leadership. He has expressed a commitment to defend American values and to restore U.S. credibility by strengthening old alliances and building new ones," said Sen. Bob Corker (R., Tenn.), chairman of the Senate Foreign Relations Committee.

Most Democrats said they remained unconvinced Mr. Tillerson was right for the job, citing concerns about his record at Exxon and his ties to Russia.

"Mr. Tillerson's lack of transparency, history of working against our national interests, close ties to Russia and indifference to Israel's future make him unfit to serve as the secretary of state," said Sen. Dianne Feinstein (D., Calif.).

Differences between career State Department employees and the White House over national policies isn't new, said current and former U.S. officials. A number of American diplomats quit their posts following the U.S. invasion of Iraq in 2003 to protest the George W. Bush administration's Middle East policy. But the numbers were low, the officials said, and overall morale at the State Department eventually rebounded.

Former officials said Mr. Tillerson must demonstrate that he speaks for Mr. Trump if he is going to successfully navigate the State Department and dealings with foreign officials, a complicated task given Mr. Trump's skepticism toward U.S. foreign-policy norms.

"If he wants to succeed at State, he's got to be White House man at the State Department," said Aaron David Miller, a long time State Department official who advised Republicans and Democrats and is now at the Wilson Center.

Jay Solomon contributed to this article.

Write to Felicia Schwartz at Felicia.Schwartz@wsj.com

More U.S. News

* Trump Urges Senate to Scrap 60-Vote Rule for Court Pick

* Sessions, Mnuchin, Price Advance in Senate Panel Votes

* Two GOP Senators Say They Will Oppose Education Nominee DeVos

* Senate Democrats Boycott Planned Committee Vote on Trump EPA Pick

* Democratic Lawmakers Seek Pentagon Probe of Flynn's Russia Today Ties

Credit: By Felicia Schwartz

Subject: Political campaigns; Political appointments; Immigration; Foreign policy

Location: Mexico Russia United States--US Arizona Israel Jerusalem Israel Iran China Florida Tel Aviv Israel

People: Trump, Donald J McCain, John Bush, George W Putin, Vladimir Rubio, Marco Bannon, Stephen K

Company / organization: Name: Senate; NAICS: 921120; Name: Republican Party; NAICS: 813940; Name: Democratic Party; NAICS: 813940

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Feb 1, 2017

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1863631015

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863631015?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-01-23

Database: The Wall Street Journal

Donald Trump Inauguration Drew More Than 18 Corporate Donors; Exxon gave $500,000 to inauguration fund; Pfizer and Dow Chemical gave $1 million each

Author: Ballhaus, Rebecca

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Feb 2017: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

At least 18 major corporations gave more than $5 million to fund President Donald Trump's inauguration festivities, according to new disclosures, including several companies whose executives are now serving in the new administration and whose business will be affected by Mr. Trump's policies.

Among the top donors to Mr. Trump's inauguration fund was Exxon Mobil, whose former chief executive, Rex Tillerson, the president has tapped to serve as secretary of state . Exxon donated $500,000 to the fund on Dec. 19--less than a week after Mr. Trump officially named Mr. Tillerson as his pick. In 2013, the company gave half that amount to former President Barack Obama's inauguration fund.

Two corporations--Pfizer Inc. and the Dow Chemical Co.--each gave $1 million to the inaugural fund. Dow Chemical's donation came about two weeks after Mr. Trump tapped the company's CEO, Andrew Liveris, to head a manufacturing council .

Neither company gave to Mr. Obama's inauguration in 2013.

Mr. Trump's inaugural committee, which raised more than $90 million, doesn't have to report its donors until April. But corporations that lobby the federal government are required to biannually disclose contributions to inaugural committees. The new reports only cover donations made in the final six months of 2016.

Corporate donations to inauguration funds aren't unusual. Mr. Obama also drew millions from corporations in 2013, though he banned such contributions to his inaugural fund four years earlier. But corporate donations to Mr. Trump's inauguration have come under scrutiny as the president has singled out several corporations in recent months for criticism or praise.

The donations also follow a campaign in which corporations were wary of linking themselves to the Republican candidate. At least four corporations that declined to support or reduced their donations to the Republican convention in July subsequently gave to Mr. Trump's inauguration .

At least three other corporations each gave $500,000 to the fund: Altria Client Services LLC, Amgen Inc. and Florida Crystals Corp.

Donors who gave $500,000 or more to the inaugural fund were invited to a "candlelight dinner" during inauguration weekend with Mr. Trump and his wife, Melania, and Vice President Mike Pence and his wife, Karen. They could also attend a separate "intimate dinner" with the Pences and lunch alongside "select cabinet appointees."

Microsoft Corp. donated $250,000 to the inaugural fund--down from $2 million to Mr. Obama in 2013, including in-kind contributions--and General Motors Co. donated $200,000. General Motors has since found itself the target of Mr. Trump's Twitter account. About 10 days after the company's donation, Mr. Trump tweeted at General Motors warning it to make its Chevy Cruze model in the U.S. rather than in Mexico. The auto maker's chief executive, Mary Barra, said days later that the company wouldn't move small-car production to the U.S.

Companies who gave $100,000 each to the inaugural fund included Aetna Inc., Anthem Inc., Clean Energy Fuels Corp., MetLife Group, Southern Company and Verizon Inc.

The agriculture company Monsanto Co. also donated $25,000 to the inaugural fund. About a month later, its chief executive met with Mr. Trump to pitch the benefits of its planned deal with Bayer AG.

Write to Rebecca Ballhaus at Rebecca.Ballhaus@wsj.com

Credit: By Rebecca Ballhaus

Subject: Donations; Political campaigns; Presidents; Chemical industry; Inaugurations

Location: Mexico

People: Trump, Donald J Pence, Mike Tillerson, Rex W Liveris, Andrew N Obama, Barack

Company / organization: Name: Amgen Inc; NAICS: 325412, 541711; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Dow Chemical Co; NAICS: 325180, 325199, 325211; Name: Microsoft Corp; NAICS: 334614, 511210; Name: General Motors Corp; NAICS: 333415, 336111, 336390; Name: Pfizer Inc; NAICS: 325412, 339113

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Feb 1, 2017

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1863644724

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863644724?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Rex Tillerson Wins Senate Confirmation to Be Secretary of State; Former Exxon Mobil chief overcame concerns about close ties with Russia's Putin

Author: Schwartz, Felicia

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Feb 2017: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

WASHINGTON--The Senate on Wednesday confirmed former Exxon Mobil Corp. CEO Rex Tillerson as secretary of state, sending him to the State Department as career officials mount a formal protest against President Donald Trump's immigration initiative and the U.S. faces a complex set of foreign-policy challenges.

Mr. Tillerson won over skeptical Republicans, including Sens. John McCain of Arizona and Marco Rubio of Florida, but continued to face Democratic opposition. He was confirmed on a 56-43 vote.

Senators had voiced concern about the close relationship Mr. Tillerson forged with Russian President Vladimir Putin while he was at Exxon and his unwillingness in testimony to recommit the U.S. to Russia sanctions . Democrats also were critical of his views on climate change.

Mr. Tillerson's confirmation was the most contentious for secretary of state in at least 50 years, coming with the support of only three Democrats--Sens. Heidi Heitkamp (D., N.D.), Joe Manchin (D., W.Va.), Mark Warner (D., Va.)--and Angus King, a Maine independent who caucuses with the Democrats. The second closest vote in recent memory, by comparison, was for Condoleezza Rice, who won confirmation 85-13 in 2005.

Now, the former business executive, 64 years old, will have to move quickly to get senior staff in place, calm hundreds of officials who have registered concerns about Mr. Trump's immigration and refugee policies, and carve out a place for himself in the Trump administration's foreign-policy apparatus, which so far has been dominated by White House aides Steve Bannon and Jared Kushner.

The immediate challenges Mr. Tillerson will confrontwhen he enters office, according to current and former U.S. officials working on foreign policy, include addressing the rift with Mexico over Mr. Trump's plans to build a border wall ; implementing and dealing with a temporary immigration ban on seven Muslim-majority countries intended to protect against terrorism; and possibly implementing Mr. Trump's suggestion to relocate the U.S. embassy in Israel to Jerusalem from Tel Aviv.

In the longer term, Mr. Tillerson will be asked to make good on Mr. Trump's pledge to recast U.S. relations with major global powers Russia and China, to help intensify the war against the terrorist organization Islamic State, and revisit the nuclear agreement that the Obama administration forged with Iran in 2015.

Mr. Tillerson was sworn in by Vice President Mike Pence at a White House ceremony Wednesday evening and was expected to go to the State Department on Thursday.

He will go straight to work, meeting Thursday with Jordan's King Abdullah II and German Vice Chancellor Sigmar Gabriel.

Mr. Tillerson has begun the process of setting up his own State Department team.

He is expected to name Margaret Peterlin, a former Navy officer and senior official at the Patent and Trademark Office during the Bush administration, as his chief of staff, according to people familiar with the deliberations.

Paula Dobriansky, a former senior State Department official in the George W. Bush administration, and Elliott Abrams, a former National Security Council aide to Mr. Bush, are among candidates to be deputy secretary of state.

Michael Dougherty, who has worked at Raytheon Co. and at the Department of Homeland Security, is expected to be nominated to take the helm of the Consular Affairs Bureau. Rob Wasinger, a former Republican Virginia congressional candidate in 2014, is expected to take on a senior role, the people familiar with the deliberations said.

Jennifer Hazelton, who led Mr. Trump's campaign communications in Georgia and had previously worked at CNN and Fox before moving to politics, is expected to be Mr. Tillerson's press secretary.

The staffing decisions aren't yet final and could change, the people familiar with the deliberations said.

The 40-year Exxon veteran has been at the State Department several times for briefings over the past two weeks and had lunch with Mr. Trump on Wednesday.

Republicans welcomed Mr. Tillerson's confirmation and said they looked forward to working with him.

"Mr. Tillerson led a global enterprise with 75,000 employees, possesses deep relationships around the world and understands the critical role of U.S. leadership. He has expressed a commitment to defend American values and to restore U.S. credibility by strengthening old alliances and building new ones," said Sen. Bob Corker (R., Tenn.), chairman of the Senate Foreign Relations Committee.

Most Democrats said they remained unconvinced Mr. Tillerson was right for the job, citing concerns over his record at Exxon and his ties to Russia.

"Mr. Tillerson's lack of transparency, history of working against our national interests, close ties to Russia and indifference to Israel's future make him unfit to serve as the secretary of state," said Sen. Dianne Feinstein (D., Calif.).

Differences between career State Department employees and the White House over national policies isn't new, said current and former U.S. officials. A number of American diplomats quit their posts following the U.S. invasion of Iraq in 2003 to protest the George W. Bush administration's Middle East policy. But the numbers were low, the officials said, and overall morale at the State Department eventually rebounded.

Former officials said Mr. Tillerson must demonstrate that he speaks for Mr. Trump if he is going to successfully navigate the State Department and dealings with foreign officials, a complicated task given Mr. Trump's skepticism toward U.S. foreign-policy norms.

"If he wants to succeed at State, he's got to be White House man at the State Department," said Aaron David Miller, a long time State Department official who advised Republicans and Democrats and is now at the Wilson Center.

Jay Solomon contributed to this article.

Write to Felicia Schwartz at Felicia.Schwartz@wsj.com

More U.S. News

* Trump Urges Senate to Scrap 60-Vote Rule for Court Pick

* Sessions, Mnuchin, Price Advance in Senate Panel Votes

* Two GOP Senators Say They Will Oppose Education Nominee DeVos

* Senate Democrats Boycott Planned Committee Vote on Trump EPA Pick

* Democratic Lawmakers Seek Pentagon Probe of Flynn's Russia Today Ties

Credit: By Felicia Schwartz

Subject: International relations; Political campaigns; Immigration; Foreign policy; Congressional committees

Location: Mexico Russia United States--US Israel Maine Arizona Jerusalem Israel Iran China Florida Tel Aviv Israel

People: Trump, Donald J Rice, Condoleezza McCain, John Pence, Mike Bush, George W Rubio, Marco Putin, Vladimir Bannon, Stephen K

Company / organization: Name: Islamic State of Iraq & the Levant--ISIS; NAICS: 813940; Name: Republican Party; NAICS: 813940; Name: Democratic Party; NAICS: 813940

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Feb 2, 2017

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1863783405

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1863783405?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-01-23

Database: The Wall Street Journal

Exxon Lowers Proved Reserve Estimates; Oil company forced to shave off nearly 15%, or 3.3 billion barrels of oil equivalent, in 2016

Author: Cook, Lynn

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Feb 2017: n/a.

ProQuest document link

Abstract: Extremely low energy prices during 2016 forced Exxon Mobil Corp. on Wednesday to lower its estimate of proved oil and gas reserves in the ground that the company controls. The reserve changes stem from rules enforced by the U.S. Securities and Exchange Commission, which call for companies to take oil...

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Full text:

Extremely low energy prices during 2016 forced Exxon Mobil Corp. on Wednesday to lower its estimate of proved oil and gas reserves in the ground that the company controls.

The Irving, Texas, energy company, which had warned late last year that it might have to take reserves off its books due to lower prices, said it had to shave off nearly 15%, or 3.3 billion barrels of oil equivalent, from its proved reserves when compared with 2015.

Exxon managed to replace only 65% of the oil and gas it pumped out of the ground in 2016 with new discoveries last year. This marks the second year in a row that Exxon has failed to fully replace the fuel that it pulled from the ground. It now has reserves of 20 billion barrels of oil equivalent.

Using new discoveries to hit 100% reserve replacement is a milestone that Exxon met consistently for more than two decades until 2015. By comparison, Exxon's top U.S. rival, Chevron Corp., said it replaced 95% of the reserves it produced during 2016, after replacing 107% of the oil and gas it pumped during 2015.

Most of the reserves that Exxon is taking off its books are in Canada's oil sands region, where it didn't make economic sense to produce given recent prices.

The reserve changes stem from rules enforced by the U.S. Securities and Exchange Commission, which call for companies to take oil reserves off their books if they aren't profitable at existing prices or can no longer be included as part of five-year development plans.

So far this year prices have been higher than in the beginning months of 2016, a signal that some of the lost reserves could be recognized again in future years, the company said.

Exxon recently said it continues to operate its Kearl oil sands mine in Alberta and will continue to develop Canadian prospects in the future.

Those reserves could be added back to Exxon's proved total if prices rise, costs fall or its operations improve.

The company's reserve picture would have been worse had it not been for 1 billion barrels of oil equivalent in new finds in the U.S., Kazakhstan, Papua New Guinea, Indonesia and Norway during 2016.

Write to Lynn Cook at lynn.cook@wsj.com

Credit: By Lynn Cook

Subject: Oil reserves; Offshore oil wells; Natural gas reserves

Location: Kazakhstan Texas United States--US Canada Indonesia Norway Papua New Guinea

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Feb 22, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1870724610

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1870724610?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Exxon Lowers Proved Reserve Estimates; Oil company forced to shave off nearly 15%, or 3.3 billion barrels of oil equivalent, in 2016

Author: Cook, Lynn

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Feb 2017: n/a.

ProQuest document link

Abstract: Extremely low energy prices during 2016 forced Exxon Mobil Corp. on Wednesday to lower its estimate of proved oil and gas reserves in the ground that the company controls.The reserve changes stem from rules enforced by the U.S. Securities and Exchange Commission, which call for companies to take oil reserves off their books if they aren't profitable at existing prices or can no longer be included as part of five-year development plans.

Links: 360 Link to Full Text

Full text:

Extremely low energy prices during 2016 forced Exxon Mobil Corp. on Wednesday to lower its estimate of proved oil and gas reserves in the ground that the company controls.

The Irving, Texas, energy company, which had warned late last year that it might have to take reserves off its books due to lower prices, said it had to shave off nearly 15%, or 3.3 billion barrels of oil equivalent, from its proved reserves when compared with 2015.

Exxon managed to replace only 65% of the oil and gas it pumped out of the ground in 2016 with new discoveries last year. This marks the second year in a row that Exxon has failed to fully replace the fuel that it pulled from the ground. It now has reserves of 20 billion barrels of oil equivalent.

Using new discoveries to hit 100% reserve replacement is a milestone that Exxon met consistently for more than two decades until 2015. By comparison, Exxon's top U.S. rival, Chevron Corp., said it replaced 95% of the reserves it produced during 2016, after replacing 107% of the oil and gas it pumped during 2015.

Most of the reserves that Exxon is taking off its books are in Canada's oil sands region and weren't profitable at recent prices. The company continues to produce oil at its Kearl oil sands project in Alberta.

The reserve changes stem from rules enforced by the U.S. Securities and Exchange Commission, which call for companies to take oil reserves off their books if they aren't profitable at existing prices or can no longer be included as part of five-year development plans.

"These revisions are not expected to affect the operation of the underlying projects or to alter the company's outlook for future production volumes," the company said

So far this year prices have been higher than in the beginning months of 2016, a signal that some of the lost reserves could be recognized again in future years, the company said.

Exxon recently said it continues to operate its Kearl oil sands mine in Alberta and will continue to develop Canadian prospects in the future.

Those reserves could be added back to Exxon's proved total if prices rise, costs fall or its operations improve.

The company's reserve picture would have been worse had it not been for 1 billion barrels of oil equivalent in new finds in the U.S., Kazakhstan, Papua New Guinea, Indonesia and Norway during 2016.

Write to Lynn Cook at lynn.cook@wsj.com

Credit: By Lynn Cook

Subject: Oil reserves; Offshore oil wells; Natural gas reserves

Location: Kazakhstan Texas United States--US Canada Indonesia Norway Papua New Guinea

Company / organization: Name: Chevron Corp; NAICS: 211111, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Feb 23, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publicationsubject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1870762976

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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Exxon Mobil Turns to U.S. Shale Basins for Growth; Company plans to spend about a fourth of its 2017 budget drilling in Texas, New Mexico and North Dakota, tapping a vast inventory of wells

Author: Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Mar 2017: n/a.

ProQuest document link

Abstract: Exxon Mobil Corp. on Wednesday outlined an ambitious plan to turn to prolific U.S. shale basins for growth, showcasing how the oil giant now sees American production as a key to its future.Mr. Woods, a 52-year-old engineer who rang the bell Wednesday morning on the New York Stock Exchange, inherited an array of challenges at the world's largest publicly traded energy company.Exxon's debt has risen as the company increased borrowing to pay for dividends, one of several factors that prompted Standard & Poor's Global Ratings last year to take away the triple-A credit rating it had held since the Great Depression.Identified years ago as a future leader through Exxon's meticulous process of winnowing its management ranks, Mr. Woods was an architect of a yearslong effort that reduced Exxon's footprint as a global fuel processor, according to people familiar with his work.

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Exxon Mobil Corp. on Wednesday outlined an ambitious plan to turn to prolific U.S. shale basins for growth, showcasing how the oil giant now sees American production as a key to its future.

The company plans to spend about a fourth of its 2017 budget--about $5.5 billion--drilling in Texas, New Mexico and North Dakota, tapping a vast inventory of wells that can turn a profit at a price of $40 a barrel.

The U.S. increasingly appears at the center of a burgeoning global revival after prices rebounded modestly and companies such as Exxon have improved in their ability to profit due to lower costs and feats of engineering.

Yet unlike some peers that plan to keep investment roughly flat in future years, Exxon plans to increase spending to an average of $26 billion a year from 2018 to 2020. The company plans $22 billion in investments this year.

"Our job is to compete and succeed in any market, irrespective of conditions or price," new Chief Executive Darren Woods said at Exxon's analyst meeting in New York. It is his first major appearance since taking over for Rex Tillerson, who stepped down to become President Donald Trump's secretary of state.

"The ultimate prize in the Permian is significant," he said, noting that the land the company controls in the West Texas and New Mexico oil region may hold the equivalent of as much as 6 billion barrels of oil and natural gas. The company also plans to invest in Guyana, where it made a major discovery in 2015.

He also warned that because shale drilling has the ability to ramp up more quickly than other kinds of production, it has the potential to "temper" price volatility.

Mr. Woods, a 52-year-old engineer who rang the bell Wednesday morning on the New York Stock Exchange, inherited an array of challenges at the world's largest publicly traded energy company. Debt has soared in recent years. Growth continues to be elusive. Returns in Exxon's oil-and-gas production business are at the lowest levels in decades.

Activists are targeting the company over whether it concealed its prior knowledge of climate change, charges Exxon has denied and said are part of a conspiracy by antagonists to smear its reputation. Some investors meanwhile have grown enamored of smaller producers with a longer record of stopping and starting production on a dime in U.S. shale fields.

That is a comedown from Exxon's exalted status a decade ago, when the company was a Wall Street darling, the biggest and most profitable publicly traded corporation in the world. In 2007, Exxon generated more than $40 billion in profits, then a record, most of which came from oil-and-gas drilling in many of the world's continents.

The recent crash in oil prices has exposed weaknesses in a record of stable profits and returns that was once unimpeachable. Net income last year was $7.8 billion, the lowest since 1996, before Exxon bought rival Mobil Corp. for $82 billion in 1999.

Exxon's debt has risen as the company increased borrowing to pay for dividends, one of several factors that prompted Standard & Poor's Global Ratings last year to take away the triple-A credit rating it had held since the Great Depression.

Some analysts are urging Mr. Woods, whose rise at the company occurred within Exxon's sprawling network of refineries and chemical plants, to shake up the cloistered descendant of John D. Rockefeller's Standard Oil.

Exxon has lost cachet among institutional investors in recent years: Most portfolios hold a smaller proportion of Exxon stock than its relative size in the S&P 500 index, according to Evercore ISI analyst Doug Terreson.

This "underscores investor concern" over Exxon's strategy, Mr. Terreson wrote in February, arguing that the company should make returns a priority over growth, a move taken up by peers including Chevron Corp. and Royal Dutch Shell PLC.

Many analysts believe Mr. Woods is the perfect person to put the company on a new course. Identified years ago as a future leader through Exxon's meticulous process of winnowing its management ranks, Mr. Woods was an architect of a yearslong effort that reduced Exxon's footprint as a global fuel processor, according to people familiar with his work.

He helped lead an effort to sell refineries or gas stations that were less profitable and less interconnected with Exxon's other operations. As he occupied various leadership roles in those businesses, Exxon shaved off 1.3 million barrels a day of refining capacity, about a fifth of the total in 2007. The company sold off thousands of gas stations from Japan to Canada.

Mr. Woods, a staunch advocate of "integration," or the effort to squeeze money from every aspect of the business--including producing, shipping, refining and processing oil and gas--turned to investments that would provide numerous options for turning a profit. Those include equipment allowing a refinery to process heavier crude that is cheaper than other grades, or making more chemicals or niche products that can be sold at a premium.

Write to Bradley Olson at Bradley.Olson@wsj.com

Related News

* BP Sets Break-Even Target at $35 a Barrel

Credit: By Bradley Olson

Subject: Petroleum refineries; Corporate profits; Institutional investments; Service stations; Natural gas

Location: North Dakota New Mexico New York United States--US Guyana West Texas

People: Trump, Donald J Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: New York Stock Exchange--NYSE; NAICS: 523210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Mar 1, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1872893558

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1872893558?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Mobil Turns to U.S. Shale Basins for Growth; Company plans to spend about a fourth of its 2017 budget drilling in Texas, New Mexico and North Dakota, tapping a vast inventory of wells

Author: Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Mar 2017: n/a.

ProQuest document link

Abstract: Exxon Mobil Corp. on Wednesday outlined an ambitious plan to turn to prolific U.S. shale basins for growth, showcasing how the oil giant now sees American production as a key to its future.Mr. Woods, a 52-year-old engineer who rang the bell Wednesday morning on the New York Stock Exchange, inherited an array of challenges at the world's largest publicly traded energy company.Exxon's debt has risen as the company increased borrowing to pay for dividends, one of several factors that prompted Standard & Poor's Global Ratings last year to take away the triple-A credit rating it had held since the Great Depression.Identified years ago as a future leader through Exxon's meticulous process of winnowing its management ranks, Mr. Woods was an architect of a yearslong effort that reduced Exxon's footprint as a global fuel processor, according to people familiar with his work.

Links: 360 Link to Full Text

Full text:

Exxon Mobil Corp. on Wednesday outlined an ambitious plan to turn to prolific U.S. shale basins for growth, showcasing how the oil giant now sees American production as a key to its future.

The company plans to spend about a fourth of its 2017 budget--about $5.5 billion--drilling in Texas, New Mexico and North Dakota, tapping a vast inventory of wells that can turn a profit at a price of $40 a barrel.

The U.S. increasingly appears at the center of a burgeoning global revival after prices rebounded modestly and companies such as Exxon have improved in their ability to profit due to lower costs and feats of engineering.

Yet unlike some peers that plan to keep investment roughly flat in future years, Exxon plans to increase spending to an average of $26 billion a year from 2018 to 2020. The company plans $22 billion in investments this year.

"Our job is to compete and succeed in any market, irrespective of conditions or price," new Chief Executive Darren Woods said at Exxon's analyst meeting in New York. It is his first major appearance since taking over for Rex Tillerson, who stepped down to become President Donald Trump's secretary of state.

"The ultimate prize in the Permian is significant," he said, noting that the land the company controls in the West Texas and New Mexico oil region may hold the equivalent of as much as 6 billion barrels of oil and natural gas. The company also plans to invest in Guyana, where it made a major discovery in 2015.

He also warned that because shale drilling has the ability to ramp up more quickly than other kinds of production, it has the potential to "temper" price volatility.

Mr. Woods, a 52-year-old engineer who rang the bell Wednesday morning on the New York Stock Exchange, inherited an array of challenges at the world's largest publicly traded energy company. Debt has soared in recent years. Growth continues to be elusive. Returns in Exxon's oil-and-gas production business are at the lowest levels in decades.

Activists are targeting the company over whether it concealed its prior knowledge of climate change, charges Exxon has denied and said are part of a conspiracy by antagonists to smear its reputation. Some investors meanwhile have grown enamored of smaller producers with a longer record of stopping and starting production on a dime in U.S. shale fields.

That is a comedown from Exxon's exalted status a decade ago, when the company was a Wall Street darling, the biggest and most profitable publicly traded corporation in the world. In 2007, Exxon generated more than $40 billion in profits, then a record, most of which came from oil-and-gas drilling in many of the world's continents.

The recent crash in oil prices has exposed weaknesses in a record of stable profits and returns that was once unimpeachable. Net income last year was $7.8 billion, the lowest since 1996, before Exxon bought rival Mobil Corp. for $82 billion in 1999.

Exxon's debt has risen as the company increased borrowing to pay for dividends, one of several factors that prompted Standard & Poor's Global Ratings last year to take away the triple-A credit rating it had held since the Great Depression.

Some analysts are urging Mr. Woods, whose rise at the company occurred within Exxon's sprawling network of refineries and chemical plants, to shake up the cloistered descendant of John D. Rockefeller's Standard Oil.

Exxon has lost cachet among institutional investors in recent years: Most portfolios hold a smaller proportion of Exxon stock than its relative size in the S&P 500 index, according to Evercore ISI analyst Doug Terreson.

This "underscores investor concern" over Exxon's strategy, Mr. Terreson wrote in February, arguing that the company should make returns a priority over growth, a move taken up by peers including Chevron Corp. and Royal Dutch Shell PLC.

Many analysts believe Mr. Woods is the perfect person to put the company on a new course. Identified years ago as a future leader through Exxon's meticulous process of winnowing its management ranks, Mr. Woods was an architect of a yearslong effort that reduced Exxon's footprint as a global fuel processor, according to people familiar with his work.

He helped lead an effort to sell refineries or gas stations that were less profitable and less interconnected with Exxon's other operations. As he occupied various leadership roles in those businesses, Exxon shaved off 1.3 million barrels a day of refining capacity, about a fifth of the total in 2007. The company sold off thousands of gas stations from Japan to Canada.

Mr. Woods, a staunch advocate of "integration," or the effort to squeeze money from every aspect of the business--including producing, shipping, refining and processing oil and gas--turned to investments that would provide numerous options for turning a profit. Those include equipment allowing a refinery to process heavier crude that is cheaper than other grades, or making more chemicals or niche products that can be sold at a premium.

Write to Bradley Olson at Bradley.Olson@wsj.com

Related News

* BP Sets Break-Even Target at $35 a Barrel

Credit: By Bradley Olson

Subject: Petroleum refineries; Corporate profits; Institutional investments; Service stations; Natural gas

Location: North Dakota New Mexico New York United States--US Guyana West Texas

People: Trump, Donald J Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: New York Stock Exchange--NYSE; NAICS: 523210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Mar 2, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1873147519

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1873147519?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Business News: Exxon Sharpens Focus on U.S. Shale Oil

Author: Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]02 Mar 2017: B.6.

ProQuest document link

Abstract:

Exxon Mobil Corp. on Wednesday described a bold turn to prolific U.S. shale basins for growth, showcasing how the oil giant now sees American production as a key to its future.

Links: 360 Link to Full Text

Full text:  

Exxon Mobil Corp. on Wednesday described a bold turn to prolific U.S. shale basins for growth, showcasing how the oil giant now sees American production as a key to its future.

The company plans to spend about a fourth of its 2017 budget -- about $5.5 billion -- drilling in Texas, New Mexico and North Dakota, tapping a vast inventory of wells that can turn a profit at a price of $40 a barrel.

The U.S. increasingly appears at the center of a burgeoning global revival after prices rebounded modestly and companies such as Exxon have gotten better at making a profit due to lower costs and feats of engineering.

Yet unlike some peers that plan to keep investment roughly flat in future years, Exxon aims to increase annual spending to an average of $26 billion from 2018 to 2020. The company plans $22 billion in investments this year.

"Our job is to compete and succeed in any market, irrespective of conditions or price," Chief Executive Darren Woods said at Exxon's analyst meeting in New York. The event marked Mr. Woods's first major appearance as CEO since succeeding Rex Tillerson, who stepped down to become President Donald Trump's secretary of state.

"The ultimate prize in the Permian is significant," Mr. Woods said, noting that the land the company controls in the West Texas and New Mexico oil region may hold the equivalent of as much as 6 billion barrels of oil and natural gas. Exxon also plans to invest in Guyana, where it made a major discovery in 2015.

He also said that because shale drilling has the ability to ramp up more quickly than other kinds of production, it has the potential to "temper" price volatility.

Mr. Woods, a 52-year-old engineer who rang the bell Wednesday morning on the New York Stock Exchange, inherited an array of challenges at the world's largest publicly traded energy company. Debt has soared in recent years. Growth continues to be elusive. Returns in Exxon's oil-and-gas production business are at their lowest levels in decades.

Activists are targeting the company over whether it concealed its prior knowledge of climate change, charges Exxon has denied and said are part of a conspiracy by antagonists to smear its reputation. Some investors meanwhile have grown enamored of smaller producers with a longer record of stopping and starting production on a dime in U.S. shale fields.

That trend marks a comedown from Exxon's exalted status a decade ago, when the company was a Wall Street darling, the biggest and most profitable publicly traded corporation in the world. The recent crash in oil prices has exposed weaknesses in a record for profit and returns that was once unimpeachable. Net income last year was $7.8 billion, the lowest since 1996, before Exxon bought rival Mobil Corp. for $82 billion in 1999.

Many analysts believe Mr. Woods is the perfect person to put the company on a new course. Identified years ago as a future leader through Exxon's winnowing of its management ranks, Mr. Woods was an architect of a yearslong effort that reduced Exxon's footprint as a global fuel processor, according to people familiar with his work. He also helped lead an effort to sell refineries and gas stations that were less profitable and less interconnected with Exxon's other operations.

Credit: By Bradley Olson

Subject: Corporate profits; Natural gas; Oil shale

Location: United States--US

People: Woods, Darren

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.6

Publication year: 2017

Publication date: Mar 2, 2017

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1873265715

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1873265715?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Exxon's $20 Billion Spending Plan Points to U.S. Energy Surge; Exxon CEO Darren Woods outlined an 11-project spending plan, largely aimed at creating new outlets for U.S. natural gas

Author: Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]06 Mar 2017: n/a.

ProQuest document link

Abstract: HOUSTON--Exxon Mobil Corp. plans to spend about $20 billion on refineries, petrochemical plants and other projects in and around the Gulf of Mexico, Chief Executive Darren Woods said Monday, underscoring how the giants of the global energy industry are turning to America. Even as the Organization of the Petroleum Exporting Countries and other nations moved late last year to put a floor under the oil price by cutting production, U.S. operators have vowed to return...

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Full text:

HOUSTON--Exxon Mobil Corp. plans to spend about $20 billion on refineries, petrochemical plants and other projects in and around the Gulf of Mexico, Chief Executive Darren Woods said Monday, underscoring how the giants of the global energy industry are turning to America.

Mr. Woods outlined the 11-project spending plan, largely aimed at creating new outlets for U.S. natural gas, in a speech at the annual CERAWeek conference. It came after a meeting with analysts last week in which he said Exxon is poised to nearly double its production from U.S. shale basins in the next decade.

The spending plans were cheered by President Donald Trump, who released a statement Monday calling Exxon's projects "exactly the kind of investment, economic development and job creation that will help put Americans back to work."

Exxon's $20 billion in Gulf Coast spending began in 2013 and will continue through at least 2022, according to the company.

Chevron Corp. is expected to unveil similar plans this week, ramping up its operations in the already booming Permian basin in West Texas and New Mexico. The company's output from the region could reach 900,000 barrels a day by 2020 if oil prices continue to rise, according to energy investment bank Tudor Pickering Holt & Co. That would mean production from one company in just one area would rival output from major world producers such as Azerbaijan.

Exxon's announcement underscored the extent to which new technology has unlocked vast new resources in the U.S., upending the balance of power in global oil. Even as the Organization of the Petroleum Exporting Countries and other nations moved late last year to put a floor under the oil price by cutting production, U.S. operators have vowed to return to the oil fields almost en masse to make up the difference.

"Hydraulic fracturing has opened up a whole new energy future for the United States, and potentially for many other countries," Mr. Woods said Monday. "We have managed, in the United States, to accomplish what was practically unthinkable only a decade ago."

The conference is expected to be defined by similar bravado as energy titans from companies and governments gather, eager to show off their resilience after prices fell from more than $100 in mid-2014 to below $30 in February of last year before beginning a partial recovery. Prices have been hovering steadily above $50 for weeks.

In his remarks, Mr. Woods also praised industry efforts to respond to the threat of climate change, spending much of his high-profile address discussing what Exxon is doing to reduce emissions. The remarks, as well as others he has made since taking over as chief executive, such as expressing support for the 2015 Paris climate deal, have signaled the company's plan to stay the course in its environmental stance.

That comes even as some in Mr. Trump's inner circle have pushed to walk away from the deal, while others have urged the president to keep the country's part in the agreement.

"We have an opportunity to contribute and help mitigate that risk through technology," Mr. Woods said.

He also extolled the virtues of free trade as having an elemental role in the U.S. energy renaissance.

Global energy executives have shown mixed responses to plans by U.S. Republicans to change tax policy in a way that would favor exports and burden imports into the country.

"It's hard to be in our business and not support open markets and free trade," he said.

The U.S. will be the greatest contributor to new global supply through 2022, with production from shale rising to 1.4 million barrels a day if prices remain around $60 a barrel, according to the Paris-based International Energy Agency. If prices rise to $80, output from shale fields alone could reach 3 million barrels a day, about the same as Kuwait, the IEA said Monday.

Companies such as Exxon are making immense investments in their refining, chemicals and export operations to take advantage of the new opportunity. From 2010 to 2020, such investments are expected to reach almost $180 billion, according to the American Chemistry Council, about 70% of which will go to the U.S. Gulf Coast.

In addition to Exxon's plans to build new plants or expand facilities to turn natural gas into the building blocks of common plastics, companies including Royal Dutch Shell PLC, Chevron Phillips Chemical and others plan similar investments or will expand production of fertilizer, polymers used to make lubricants, and even tennis racket strings.

Write to Bradley Olson at Bradley.Olson@wsj.com

Credit: By Bradley Olson

Subject: International trade; Budgets; Prices; Chemical industry; Free trade; Energy industry; International markets; Natural gas

Location: Azerbaijan New Mexico United States--US Gulf of Mexico West Texas

People: Trump, Donald J

Company / organization: Name: Chevron Corp; NAICS: 211111, 324110; Name: Republican Party; NAICS: 813940

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Mar 6, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1874531554

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874531554?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-01-23

Database: The Wall Street Journal

Trump Praise for Exxon Follows Meeting With Tillerson, Ex-CEO; President met with Secretary of State before issuing statement and calling company 'true American success story'

Author: Ballhaus, Rebecca

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Mar 2017: n/a.

ProQuest document link

Abstract: The White House at 3:43 p.m. on Monday issued an official statement congratulating Exxon Mobil Corp. on its plan to invest $20 billion expanding its manufacturing capabilities along the Gulf Coast. [...]the company's "Growing the Gulf" program includes investments that started in 2013, mirroring a growing pattern among companies who fear the president's Twitter account of trumpeting investment programs already under way. Mr. Trump's decision to tap the former Exxon CEO as his secretary of...

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Full text:

When President Donald Trump has singled out companies for praise or criticism in the past, it has often raised the question: Why those?

The White House at 3:43 p.m. on Monday issued an official statement congratulating Exxon Mobil Corp. on its plan to invest $20 billion expanding its manufacturing capabilities along the Gulf Coast. "This is a true American success story," Mr. Trump said in a statement that closely echoed Exxon's own press release, issued half an hour earlier.

The White House statement quoted Exxon CEO Darren Woods and cited the press release's figure that the jobs created by the new investment would pay an average salary of $100,000. It also lifted one paragraph on the program's background nearly word-for-word.

Less than four hours later, Mr. Trump followed up with some more praise for the oil giant--this time in video form . Calling Exxon a "great company," he said the new investment was "something that was done to a large extent because of our policies."

In fact, the company's "Growing the Gulf" program includes investments that started in 2013, mirroring a growing pattern among companies who fear the president's Twitter account of trumpeting investment programs already under way.

What could have spurred the president's burst of enthusiasm for Exxon? One possibility: an Oval Office meeting he held two hours before issuing the statement with the company's former CEO--Secretary of State Rex Tillerson.

Mr. Tillerson stepped down as chief executive of the company on Jan. 1, taking with him a $180 million retirement package.

Mr. Trump's decision to tap the former Exxon CEO as his secretary of state at the time raised questions about whether the oil company--which already spends millions lobbying the federal government--would see a heightened influence in Washington as a result. One particular area of concern: the company's history of lobbying the government on sanctions on Russia, which the company has said hurt its business interests.

Mr. Tillerson in his confirmation hearing argued that neither he nor his former company ever lobbied against U.S. sanctions on Russia or Iran, though his company and its outside consultants have filed more than 30 lobbying disclosure reports, listing sanctions issues in Iran, Russia and Libya as among its issues.

A White House spokeswoman, asked whether Mr. Trump's praise of Exxon suggested that he was trying to reward his secretary of state's former company, responded: "Actually it's the other way around. Exxon is giving America a boost by heavily investing in creating good paying jobs right here at home."

The spokeswoman, Sarah Huckabee Sanders, added: "It's no secret job creation is a top priority of the president, and when companies make this type of commitment the administration will recognize their efforts."

Indeed, Exxon isn't the only company whose investment plans have elicited praise from the president. Intel CEO Brian Krzanich unveiled a planned $7 billion investment at the White House last month, prompting Mr. Trump to tweet him a thank you.

Exxon also donated $500,000 to Mr. Trump's inauguration fund in December, less than a week after he officially named Mr. Tillerson as his pick to head the State Department. In 2013, the company gave half that amount to former President Barack Obama's inauguration fund.

Yet even $250,000 was enough to draw Mr. Trump's scorn in 2013 . "Exxon donated $250g to Obama's inaugural," he tweeted that January. "I guess the Democrats have no problem accepting money from 'big oil.' "

Felicia Schwartz contributed to this article.

Write to Rebecca Ballhaus at Rebecca.Ballhaus@wsj.com

Related

* Exxon's $20 Billion Spending Plan Points to U.S. Energy Surge

Credit: By Rebecca Ballhaus

Subject: Presidents; Sanctions; Lobbying

Location: Iran Russia United States--US Libya

People: Woods, Darren

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Twitter Inc; NAICS: 519130; Name: Democratic Party; NAICS: 813940

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Mar 7, 2017

Section: US

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1874576216

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874576216?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-01-23

Database: The Wall Street Journal

Exxon's $20 Billion Spending Plan Points to U.S. Energy Surge; Exxon CEO Darren Woods outlined an 11-project spending plan, largely aimed at creating new outlets for U.S. natural gas

Author: Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 Mar 2017: n/a.

ProQuest document link

Abstract: HOUSTON--Exxon Mobil Corp. plans to spend about $20 billion on refineries, petrochemical plants and other projects in and around the Gulf of Mexico, Chief Executive Darren Woods said Monday, underscoring how the giants of the global energy industry are turning to America. Even as the Organization of the Petroleum Exporting Countries and other nations moved late last year to put a floor under the oil price by cutting production, U.S. operators have vowed to return...

Links: 360 Link to Full Text

Full text:

HOUSTON--Exxon Mobil Corp. plans to spend about $20 billion on refineries, petrochemical plants and other projects in and around the Gulf of Mexico, Chief Executive Darren Woods said Monday, underscoring how the giants of the global energy industry are turning to America.

Mr. Woods outlined the 11-project spending plan, largely aimed at creating new outlets for U.S. natural gas, in a speech at the annual CERAWeek conference. It came after a meeting with analysts last week in which he said Exxon is poised to nearly double its production from U.S. shale basins in the next decade.

The spending plans were cheered by President Donald Trump , who released a statement Monday calling Exxon's projects "exactly the kind of investment, economic development and job creation that will help put Americans back to work."

Exxon's $20 billion in Gulf Coast spending began in 2013 and will continue through at least 2022, according to the company.

Chevron Corp. is expected to unveil similar plans this week, ramping up its operations in the already booming Permian basin in West Texas and New Mexico. The company's output from the region could reach 900,000 barrels a day by 2020 if oil prices continue to rise, according to energy investment bank Tudor Pickering Holt & Co. That would mean production from one company in just one area would rival output from major world producers such as Azerbaijan.

Exxon's announcement underscored the extent to which new technology has unlocked vast new resources in the U.S., upending the balance of power in global oil. Even as the Organization of the Petroleum Exporting Countries and other nations moved late last year to put a floor under the oil price by cutting production, U.S. operators have vowed to return to the oil fields almost en masse to make up the difference.

"Hydraulic fracturing has opened up a whole new energy future for the United States, and potentially for many other countries," Mr. Woods said Monday. "We have managed, in the United States, to accomplish what was practically unthinkable only a decade ago."

The conference is expected to be defined by similar bravado as energy titans from companies and governments gather, eager to show off their resilience after prices fell from more than $100 in mid-2014 to below $30 in February of last year before beginning a partial recovery. Prices have been hovering steadily above $50 for weeks.

In his remarks, Mr. Woods also praised industry efforts to respond to the threat of climate change, spending much of his high-profile address discussing what Exxon is doing to reduce emissions. The remarks, as well as others he has made since taking over as chief executive, such as expressing support for the 2015 Paris climate deal, have signaled the company's plan to stay the course in its environmental stance.

That comes even as some in Mr. Trump's inner circle have pushed to walk away from the deal, while others have urged the president to keep the country's part in the agreement.

"We have an opportunity to contribute and help mitigate that risk through technology," Mr. Woods said.

He also extolled the virtues of free trade as having an elemental role in the U.S. energy renaissance.

Global energy executives have shown mixed responses to plans by U.S. Republicans to change tax policy in a way that would favor exports and burden imports into the country.

"It's hard to be in our business and not support open markets and free trade," he said.

The U.S. will be the greatest contributor to new global supply through 2022, with production from shale rising to 1.4 million barrels a day if prices remain around $60 a barrel, according to the Paris-based International Energy Agency. If prices rise to $80, output from shale fields alone could reach 3 million barrels a day, about the same as Kuwait, the IEA said Monday.

Companies such as Exxon are making immense investments in their refining, chemicals and export operations to take advantage of the new opportunity. From 2010 to 2020, such investments are expected to reach almost $180 billion, according to the American Chemistry Council, about 70% of which will go to the U.S. Gulf Coast.

In addition to Exxon's plans to build new plants or expand facilities to turn natural gas into the building blocks of common plastics, companies including Royal Dutch Shell PLC, Chevron Phillips Chemical and others plan similar investments or will expand production of fertilizer, polymers used to make lubricants, and even tennis racket strings.

Write to Bradley Olson at Bradley.Olson@wsj.com

Related

* Trump Praise for Exxon Follows Meeting With Tillerson

* Statoil Sets Sights on Renewables

Credit: By Bradley Olson

Subject: International trade; Budgets; Prices; Free trade; Chemical industry; Energy industry; International markets; Natural gas

Location: Azerbaijan New Mexico United States--US West Texas Gulf of Mexico

People: Trump, Donald J

Company / organization: Name: Chevron Corp; NAICS: 211111, 324110; Name: Republican Party; NAICS: 813940

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Mar 7, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1874585935

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874585935?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-01-23

Database: The Wall Street Journal

Business News: Exxon Places Big Wager on U.S. Energy --- Oil giant's $20 billion spending plan shows how sector is shifting focus toward America

Author: Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]07 Mar 2017: B.3.

ProQuest document link

Abstract:

Exxon Mobil Corp. plans to spend about $20 billion on refineries, petrochemical plants and other projects in and around the Gulf of Mexico, Chief Executive Darren Woods said Monday, underscoring how the giants of the global energy industry are turning to America.

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HOUSTON -- Exxon Mobil Corp. plans to spend about $20 billion on refineries, petrochemical plants and other projects in and around the Gulf of Mexico, Chief Executive Darren Woods said Monday, underscoring how the giants of the global energy industry are turning to America.

Mr. Woods outlined the 11-project spending plan, largely aimed at creating new outlets for U.S. natural gas, in a speech at the annual CERAWeek conference. It came after a meeting with analysts last week in which he said Exxon is poised to nearly double its production from U.S. shale basins in the next decade.

The spending plans were cheered by President Donald Trump, who released a statement Monday calling Exxon's projects "exactly the kind of investment, economic development and job creation that will help put Americans back to work."

Exxon's $20 billion in Gulf Coast spending began in 2013 and will continue through at least 2022, according to the company.

Chevron Corp. is expected to unveil similar plans this week, ramping up its operations in the already booming Permian basin in West Texas and New Mexico. The company's output from the region could reach 900,000 barrels a day by 2020 if oil prices continue to rise, according to energy investment bank Tudor Pickering Holt & Co. That would mean production from one company in just one area would rival output from major world producers such as Azerbaijan.

Exxon's announcement highlights the extent to which new technology has unlocked vast new resources in the U.S., upending the balance of power in global oil. Even as the Organization of the Petroleum Exporting Countries and other nations moved late last year to put a floor under the oil price by cutting production, U.S. operators have vowed to return to the oil fields almost en masse to make up the difference.

"Hydraulic fracturing has opened up a whole new energy future for the United States, and potentially for many other countries," Mr. Woods said Monday. "We have managed, in the United States, to accomplish what was practically unthinkable only a decade ago."

The conference is expected to be defined by similar bravado as energy titans from companies and governments gather, eager to show off their resilience after prices fell from more than $100 in mid-2014 to below $30 in February of last year before beginning a partial recovery. Prices have been hovering steadily above $50 for weeks.

In his remarks, Mr. Woods also praised industry efforts to respond to the threat of climate change, spending much of his high-profile address discussing what Exxon is doing to reduce emissions. The remarks, as well as others he has made since taking over as chief executive, such as expressing support for the 2015 Paris climate deal, have signaled the company's plan to stay the course in its environmental stance.

That comes even as some in Mr. Trump's inner circle have pushed to walk away from the deal, while others have urged the president to keep the country's part in the agreement.

"We have an opportunity to contribute and help mitigate that risk through technology," Mr. Woods said.

Credit: By Bradley Olson

Subject: International markets; Capital expenditures; Refineries; Petroleum industry

Location: United States--US Gulf of Mexico

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2017

Publication date: Mar 7, 2017

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1874620405

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1874620405?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or dist ribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Oil Companies Take to Thrifty Bets; Energy producers like Exxon and BP are avoiding expensive engineering forays in favor of cheaper, quicker projects

Author: Kent, Sarah; Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 Mar 2017: n/a.

ProQuest document link

Abstract: Oil prices have made a modest comeback from the lows hit a little over a year ago, but energy companies such as Exxon Mobil Corp. and BP PLC aren't pursuing the extravagant bets they made at $100 a barrel--like commissioning multibillion-dollar projects in Arctic waters and Kazakhstan's Caspian Sea.According to Sanford C. Bernstein, Europe's biggest oil companies have slashed capital budgets by $51 billion since their 2013 peak and are expected to keep spending at current levels of around $90 billion a year through to 2020, but production volumes are on the rise.Fatih Birol, executive director of the International Energy Agency in Paris, warned Monday that shorter cycle investment plans could create an oil price shock.The IEA estimates oil and gas investment dropped to $450 billion annually during the two-year energy downturn, 25% less than it needs to be to meet future global demand growth and offset declines in existing fields.

Links: 360 Link to Full Text

Full text:

The world's biggest oil companies are getting thrifty.

Oil prices have made a modest comeback from the lows hit a little over a year ago, but energy companies such as Exxon Mobil Corp. and BP PLC aren't pursuing the extravagant bets they made at $100 a barrel--like commissioning multibillion-dollar projects in Arctic waters and Kazakhstan's Caspian Sea.

These companies, including Exxon, BP, Royal Dutch Shell PLC and Chevron Corp., are putting their money into cheaper, quicker ventures in Texas shale country, the Middle East and Brazil and squeezing more from existing projects world-wide.

Exxon last week unveiled an ambitious plan to put its U.S. drilling opportunities in Texas, New Mexico and North Dakota at the heart of its future. By 2025, the company said, its production from these areas could more than triple to the equivalent of 750,000 barrels a day. Together with other shale production, that would amount to about a third of Exxon's current output.

It is a shift away from the business model long-employed by the world's largest oil companies, favoring technologically challenging projects that had huge upfront costs that would be paid off over 20 or 30 years.

To drive down costs, big oil companies are abandoning such developments in favor of standardization and bolt-on models that take advantage of existing infrastructure. They are returning to old basins to see what they can extract with new technologies and focusing on the lowest-cost prospects.

The appeal of cheaper projects that can bring oil or gas to market within a few years is that it allows big companies to avoid being locked in to multibillion investments over as much as a decade, said Ryan Lance, the chief executive of ConocoPhillips, at the annual CERAWeek conference in Houston on Tuesday.

"They're not just paying lip service to this," said Luke Parker, vice president of corporate analysis at Wood Mackenzie, a Scottish energy consultancy. "They want to be in a position to future proof themselves against peak oil demand when it comes."

The challenge of the strategy is that many of the big Western companies have yet to prove that they can consistently turn a profit in a time of lower prices, especially in U.S. shale fields. Increasing production may prove even more daunting since the companies have to spend billions just to replace the barrels they pump every year.

Last week, BP announced plans to drive down its break-even oil price to between $35 and $40 a barrel by 2021, all while increasing production. It is a feat the British oil giant says it can pull off by maintaining strict cash discipline, driving down costs and focusing on projects that generate strong returns even at current prices.

BP recently abandoned ambitious plans to explore in the Great Australian Bight--a potentially huge source of new supply that still couldn't compete economically with other project opportunities. Instead, it invested $2 billion for a 10% stake in oil fields in the United Arab Emirates, which has some of the world's lowest oil-extraction costs.

Going forward, the company is focusing on "long-lived cash bricks" of low cost oil and natural gas, said BP Chief Executive Bob Dudley during an interview at CERAWeek.

Others are pursuing a similar agenda. Chevron CEO John Watson told analysts Tuesday that the company intends to invest more of its capital budget in projects that start up quickly and generate higher returns. About three-fourths of the company's $20 billion capital budget in 2017 will generate cash within two years, Mr. Watson said.

Shell is focusing the bulk of its new investment on deep water projects offshore Brazil that it says break even at less than $40 a barrel. France's Total SA says reducing the break-even level on its projects is "a top priority." Last week, Italy's Eni SpA said new projects out to 2020 will have an average break-even of $30 a barrel.

The focus on frugality is a departure from the 10-year period from 2005 to 2014, when concerns that supply could run out and soaring oil prices sent energy companies on a grand, often wildly expensive, chase for new production.

They took on projects like Kashagan, a giant oil field in Kazakhstan that took Exxon, Shell and others over a decade and $50 billion to develop. It will produce oil for decades but has become a cautionary tale, especially after oil prices began falling in 2014.

According to Sanford C. Bernstein, Europe's biggest oil companies have slashed capital budgets by $51 billion since their 2013 peak and are expected to keep spending at current levels of around $90 billion a year through to 2020, but production volumes are on the rise.

A similar pattern also is emerging at Exxon and Chevron, both of which have roughly halved spending since 2013, but production is still seen increasing, according to estimates from S&P Global Market Intelligence.

Fatih Birol, executive director of the International Energy Agency in Paris, warned Monday that shorter cycle investment plans could create an oil price shock. The IEA estimates oil and gas investment dropped to $450 billion annually during the two-year energy downturn, 25% less than it needs to be to meet future global demand growth and offset declines in existing fields.

Mr. Birol said investments globally need to rise at least 20% to avoid oil price spikes in the coming years.

Another challenge for these companies will be to prove that they can pivot successfully.

Even as Exxon plans to boost its U.S. focus--including with a $20 billion spending plan on American refinery and processing operations--the company lost $4.2 billion in its American oil-and-gas drilling business last year and more than $500 million in 2015. While many of the companies are moving ahead with investments on what now appear to be profitable projects from South America to Papua New Guinea, they face a major risk of surging costs that would erode returns.

"Our job is to compete and succeed in any market, irrespective of conditions or price," said Exxon's new CEO Darren Woods last week.

Write to Sarah Kent at sarah.kent@wsj.com and Bradley Olson at Bradley.Olson@wsj.com

Related

* Crude Logs Biggest Drop in Over a Year

* OPEC and Resilient Shale Companies Learning to Coexist (March 7)

* IEA Sees No Peak Oil Demand 'Any Time Soon' (March 6)

* Brought Down by Long Bust, Texas Oilmen Pray for Another Boom (March 5)

Credit: By Sarah Kent and Bradley Olson

Subject: Budgets; Crude oil prices; Costs; Energy industry; Natural gas

Location: Texas Middle East North Dakota New Mexico United States--US Arctic region Caspian Sea Kazakhstan Brazil

Company / organization: Name: ConocoPhillips Co; NAICS: 211111; Name: International Energy Agency; NAICS: 541720, 926130, 928120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Mar 8, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1875093147

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875093147?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

The New Exxon: Fewer Risks, Lower Returns; Exxon's Gulf Coast investment says more about the changed company than it does about new U.S. spending

Author: Jakab, Spencer

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Mar 2017: n/a.

ProQuest document link

Abstract: Spending $20 billion in oil, gas and chemical infrastructure or plowing $6.5 billion into doubling acreage in the Permian Basin's shale fields in January seems like more of the same.Yet these long-lived assets, essential components of an integrated oil-and-gas company, have historically offered poorer returns across the cycle.Get financial insights and commentary on global investing from The Wall Street Journal's Heard on the Street team.

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Full text:

What would Iron Ass say?

Exxon Mobil Corp. got praise from the president for its $20 billion commitment to projects on the Gulf Coast . The real news was what the investment says about Exxon and other big oil companies. Also, the plans had been years in the making and account for only a fraction of the $300 billion or so the company will probably invest over the same time.

For longtime observers, the announcement is another sign that the company shaped by Lee "Iron Ass" Raymond is changing, as is the industry. The predecessor to recently departed CEO Rex Tillerson, now secretary of state, Mr. Raymond is best remembered for roughly quintupling shareholders' money in the 12 years ended in 2005. His biggest contribution to Exxon, though, was a relentless focus on return on capital employed.

This had two effects: It gave Exxon the financial discipline to zig when others were zagging in a boom-and-bust industry, earning it superior returns across the cycle. It also, along with Exxon's size, allowed it to make some very big, very profitable bets.

Spending $20 billion in oil, gas and chemical infrastructure or plowing $6.5 billion into doubling acreage in the Permian Basin's shale fields in January seems like more of the same. It isn't.

Shale may be the future, but it is problematic for Big Oil. Small competitors that could never risk billions and spend years extracting oil and gas from a field with high political, geological or technological risks regularly roll the dice on a few wells in a place like the Permian. The competition lowers Exxon's potential return, despite its superior technology and management, though it also lowers risk because it can easily scale back investment during periods of weak demand.

Chemical, midstream, refining and transport infrastructure of the sort Exxon is building along the Gulf Coast, on the other hand, isn't for the commitment-shy. Yet these long-lived assets, essential components of an integrated oil-and-gas company, have historically offered poorer returns across the cycle. From the years 2000 through 2011, for example, downstream and chemicals earned Exxon a return on average capital employed of 20.5% and 19.7%, respectively. That is emblematic of Mr. Raymond's high bar for returns, but far short of the 33.4% earned over the same period by upstream oil and gas. There is good reason for the higher bar. The latter could turn up less oil than expected, get expropriated by a foreign government or fetch a lower price than projected.

In the past five years, though, the returns have flipped with oil-and-gas production earning less than 12%, underperforming the rest of the business. That may improve as oil emerges from a bear market, but not by much. We may be in a new normal for Big Oil.

Get financial insights and commentary on global investing from The Wall Street Journal's Heard on the Street team. Subscribe to the podcast.

Credit: By Spencer Jakab

Subject: Investments

Location: Permian Basin United States--US

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Mar 9, 2017

column: Heard on the Street

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1875356543

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875356543?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with pe rmission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-23

Database: The Wall Street Journal

Exxon Buys Stake in Offshore Mozambican Natural Gas Field for $2.8 Billion; Deep water "Area 4" block contains estimated 85 trillion cubic feet of gas

Author: Hufford, Austen

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Mar 2017: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

Exxon Mobil Corp. said Thursday that it would buy a 25% indirect interest in an offshore natural gas field near Mozambique from Eni SpA for about $2.8 billion.

The deep water "Area 4" block contains an estimated 85 trillion cubic feet of natural gas.

Eni currently holds a 50% indirect share in the field through a 71.4% stake in Eni East Africa, which owns 70% of the Area 4 concession.

Following the deal, Eni East Africa will be co-owned by Eni with a 35.7% stake, Exxon with 35.7%, China National Petroleum Corp. with 28.6% and other investors.

Eni will continue to lead the floating liquefied natural gas project and all upstream operations in Area 4, while Exxon will lead the construction and operation of natural gas liquefaction facilities onshore.

Write to Austen Hufford at austen.hufford@wsj.com

Credit: By Austen Hufford

Subject: Natural gas

Location: Mozambique

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Eni SpA; NAICS: 211111, 324110; Name: China National Petroleum Corp; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Mar 9, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1875371200

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875371200?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Business News: Oil Firms Now Favor Frugal Bets --- Exxon, BP and other energy companies are avoiding expensive engineering projects

Author: Kent, Sarah; Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]09 Mar 2017: B.5.

ProQuest document link

Abstract:

Oil prices have made a modest comeback from the lows hit a little over a year ago, but energy companies such as Exxon Mobil Corp. and BP PLC aren't pursuing the extravagant bets they made at $100 a barrel -- like commissioning multibillion-dollar projects in Arctic waters and Kazakhstan's Caspian Sea.

Links: 360 Link to Full Text

Full text:  

The world's biggest oil companies are getting thrifty.

Oil prices have made a modest comeback from the lows hit a little over a year ago, but energy companies such as Exxon Mobil Corp. and BP PLC aren't pursuing the extravagant bets they made at $100 a barrel -- like commissioning multibillion-dollar projects in Arctic waters and Kazakhstan's Caspian Sea.

These companies, including Royal Dutch Shell PLC and Chevron Corp., are putting their money into cheaper, quicker ventures in Texas shale country, the Middle East and Brazil and squeezing more from existing projects world-wide.

Exxon last week unveiled an ambitious plan to put its U.S. drilling opportunities in Texas, New Mexico and North Dakota at the heart of its future.

By 2025, the company said, its production from these areas could more than triple to the equivalent of 750,000 barrels a day. Together with other shale production, that would amount to about a third of Exxon's current output.

It is a shift away from the business model long employed by the world's largest oil companies, favoring challenging projects that had huge upfront costs that would be paid off over 20 or 30 years.

To drive down costs, big oil companies are abandoning such developments in favor of standardization and bolt-on models that take advantage of existing infrastructure. They are returning to old basins to see what they can extract with new technologies and focusing on the lowest-cost prospects.

The appeal of cheaper projects that can bring oil or gas to market within a few years is that it allows big companies to avoid being locked in to multibillion investments over as much as a decade, said Ryan Lance, the chief executive of ConocoPhillips, at the annual CERAWeek conference in Houston on Tuesday.

"They're not just paying lip service to this," said Luke Parker, vice president of corporate analysis at Wood Mackenzie, a Scottish energy consulting firm. "They want to be in a position to future proof themselves against peak oil demand when it comes."

The challenge of the strategy is that many of the big Western companies have yet to prove that they can consistently turn a profit in a time of lower prices, especially in U.S. shale fields.

Increasing production may prove even more daunting because the companies have to spend billions just to replace the barrels they pump every year.

Last week, BP announced plans to drive down its break-even oil price to between $35 and $40 a barrel by 2021, all while increasing production.

It is a feat the British oil giant says it can pull off by maintaining strict cash discipline, driving down costs and focusing on projects that generate strong returns even at current prices. BP recently abandoned ambitious plans to explore in the Great Australian Bight -- a potentially huge source of new supply that still couldn't compete economically with other project opportunities. Instead, it invested $2 billion for a 10% stake in oil fields in the United Arab Emirates, which has some of the world's lowest oil-extraction costs. Going forward, the company is focusing on "long-lived cash bricks" of low cost oil and natural gas, said BP Chief Executive Bob Dudley during an interview at CERAWeek.

Others are pursuing a similar agenda. Chevron CEO John Watson told analysts Tuesday that the company intends to invest more of its capital budget in projects that start up quickly and generate higher returns. About three-fourths of the company's $20 billion capital budget in 2017 will generate cash within two years, Mr. Watson said.

Shell is focusing the bulk of its new investment on deep water projects offshore Brazil that it says break even at less than $40 a barrel. France's Total SA says reducing the break-even level on its projects is "a top priority."

According to Sanford C. Bernstein, Europe's biggest oil companies have slashed capital budgets by $51 billion since their 2013 peak and are expected to keep spending at current levels of around $90 billion a year through 2020, but production volumes are on the rise.

View Image - Enlarge this image.

Credit: By Sarah Kent and Bradley Olson

Subject: Petroleum industry; Petroleum production; Strategic planning

Location: Brazil Texas United Arab Emirates

Company / organization: Name: Exxon Mobil Corp; NAICS: 447110, 211111; Name: BP PLC; NAICS: 211111, 32 4110, 447110; Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Chevron Corp; NAICS: 211111, 324110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.5

Publication year: 2017

Publication date: Mar 9, 2017

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1875395670

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1875395670?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Rex Tillerson Used Email Alias at Exxon to Discuss Climate Change, New York Says; Attorney general's office accuses Exxon of withholding documents in probe into what it told investors about climate change; says Rex Tillerson used pseudonym 'Wayne Tracker'

Author: Matthews, Christopher M; Ailworth, Erin

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]14 Mar 2017: n/a.

ProQuest document link

Abstract: Lawyers for Attorney General Eric Schneiderman's office said in court documents that Exxon hadn't disclosed that Rex Tillerson, the former chairman and chief executive, used an alias email address to discuss risk-management issues related to climate change. The New York attorney general and the U.S. Securities and Exchange Commission are also investigating how Exxon values its assets in a world of increasing climate-change regulations, a probe that could have far-reaching consequences for the oil and...

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The New York attorney general accused Exxon Mobil Corp. Monday of withholding documents from his office as it investigates whether the energy company misrepresented its understanding of climate change to investors and the public.

Lawyers for Attorney General Eric Schneiderman's office said in court documents that Exxon hadn't disclosed that Rex Tillerson, the former chairman and chief executive, used an alias email address to discuss risk-management issues related to climate change. Mr. Tillerson, now the U.S. secretary of state, used the pseudonym "Wayne Tracker" from at least 2008 to 2015, according to the attorney general.

"Despite the company's incidental production of approximately 60 documents bearing the 'Wayne Tracker' email address, neither Exxon nor its counsel have ever disclosed that this separate email account was a vehicle for Mr. Tillerson's relevant communications at Exxon," Senior Enforcement Counsel John Oleske said in a letter to New York Supreme Court Justice Barry Ostrager.

Exxon said in a statement it has provided more than 2.5 million pages of documents in response to a subpoena from Mr. Schneiderman's office, and will respond to the claims in court. The company acknowledged that Wayne.Tracker@exxonmobil.com address is part of the company's email system.

"[It] was put in place for secure and expedited communications between select senior company officials and the former chairman for a broad range of business-related topics," the company said. But reports "indicating that emails to or from this address were exclusively climate-related are false."

A spokesman for Mr. Schneiderman's office declined to comment. A State Department spokeswoman declined to comment.

Mr. Oleske said in the letter Monday that despite promising to "move heaven and earth" to comply with a subpoena, Exxon had withheld documents related to senior management, including from 34 email accounts assigned to top executives, board members and their assistants.

The New York attorney general and the U.S. Securities and Exchange Commission are also investigating how Exxon values its assets in a world of increasing climate-change regulations, a probe that could have far-reaching consequences for the oil and gas industry.

The Irving, Texas-based company has played down questions about its modest asset write-downs, saying it is extremely conservative in booking the value of new fields and wells. In January, Exxon said it wrote down the value of more than $2 billion in U.S. assets, departing from decadeslong practice.

It is unclear at this stage what impact the investigations may have on Exxon, if any. Mr. Schneiderman has broad powers to investigate corporations under New York state's Martin Act, including civil and criminal claims against companies for securities violations.

Credit: By Christopher M. Matthews and Erin Ailworth

Subject: Attorneys general; Criminal investigations; Subpoenas; Climate change; Executives

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Mar 14, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1876625870

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1876625870?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distr ibution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Exxon Rejects New York's Accusations in Climate Case; Oil major acknowledges more of Tillerson's emails could emerge because of technical issue with his alias account

Author: Ailworth, Erin

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Mar 2017: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

Exxon Mobil Corp. called accusations that it withheld documents relating to climate change from the New York attorney general an attempt to discredit the energy company, but disclosed a newly discovered technical issue that could mean it will soon release more of its former chairman's emails.

Attorney General Eric Schneiderman's office has been investigating whether Exxon misrepresented its understanding of climate change to investors and the public. Earlier this week, lawyers for Mr. Schneiderman's office said in court documents that Exxon had not disclosed that Rex Tillerson, Exxon's former chief executive, had used an alias email--wayne.tracker@exxonmobil.com --to discuss the issue.

Exxon rebutted that claim in a letter to the court on Thursday, saying that the accusations were about "obtaining publicity, not information."

The company has produced more than 2.5 million pages of documents in connection with Mr. Schneiderman's investigation, including emails from the Wayne Tracker account , as well as the primary Exxon email address used by Mr. Tillerson, who is now U.S. secretary of state.

"Mr. Tillerson's use of the Wayne Tracker account was entirely proper," Exxon said in its letter. "It allowed a limited group of senior executives to send time-sensitive messages to Mr. Tillerson that received priority over the normal daily traffic that crossed the desk of a busy CEO. The purpose was efficiency, not secrecy."

But a re-examination of Mr. Tillerson's Wayne Tracker account--prompted by Mr. Schneiderman's accusations--revealed a technical issue with the system Exxon uses to protect and save emails that are under a litigation hold, the company said.

"Despite the company's intent to preserve the relevant emails in both of Mr. Tillerson's accounts, due to the manner in which email accounts had been configured years earlier and how they interact with the system, these technological processes did not automatically extend to the secondary email account," Exxon said in the letter to the court.

That means more emails associated with the Wayne Tracker email address could surface and be released to the AG's office. But because many of the emails sent to the Wayne Tracker account were also sent to Mr. Tillerson's primary email, or were sent from senior executives whose communications fall under Mr. Schneiderman's subpoena, Exxon said it expects the impact of the technical issue "will not be significant."

Mr. Schneiderman's office has known about the alias email account since February 2016, the company said.

A spokeswoman for the attorney general said he looked forward to addressing the issues raised in Exxon's letter in court.

"More than 16 months after receiving our subpoena, Exxon is just now admitting it may not have preserved or produced the emails of its former CEO, who used an alias email account," said Amy Spitalnick, press secretary for Mr. Schneiderman.

Mr. Tillerson has been traveling in Asia this week. The State Department declined comment.

Credit: By Erin Ailworth

Subject: Electronic mail systems; Attorneys general; Subpoenas; Climate change

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Mar 17, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1878007433

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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Exxon Harnesses Computing Power

Author: Castellanos, Sara

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]29 Mar 2017: n/a.

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Abstract:

In the past five years, oil-and-gas companies have begun to explore using high-cost supercomputing technology for more complex problems such as reservoir simulations, said Jan E. Odegard, executive director at the Ken Kennedy Institute for Information Technology at Rice University.

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A supercomputing record claimed earlier this year by Exxon Mobil Corp. is about more than bragging rights. The energy giant says the computational power could revolutionize the way that it models and predicts production over the life of an oil or gas field.

Exxon conducted the record-breaking feat last month with the National Center for Supercomputing Applications' Blue Waters supercomputer, running a reservoir simulation using 716,800 processors. That is more than four times the number of processors previously used in the oil-and-gas industry on such simulations, according to staff at the NCSA.

Using more than 700,000 processors is similar to harnessing the power of 22,400 computers with 32 processors per computer.

"It's orders of magnitude faster than what we could do previously, which is allowing us to optimize our (oil and gas field) development plans," said Carol Lloyd, engineering vice president of Exxon Mobil Upstream Research, which is the research arm tied to the exploration, development and production of oil and gas. A single such reservoir model traditionally takes days to produce results, Ms. Lloyd said. With this reservoir simulation breakthrough, the simulation can be done in a few minutes or hours, she said.

For years, energy companies such as Exxon have used supercomputers to analyze seismic data and assemble a map of geologic formations, which can shape decisions about where to drill. Creating a model that predicts production of a reservoir over time is more complicated, and Exxon said its latest supercomputing effort in this area has yielded faster and more detailed modeling.

New approaches to supercomputing made that possible. In a highly competitive and capital-intensive industry, in which prices fluctuate constantly, crisper and more detailed images and better predictions with less guesswork and the least environmental impact are critical to the business, according to Ms. Lloyd and energy analysts. She called the latest computational feat a breakthrough.

In the past five years, oil-and-gas companies have begun to explore using high-cost supercomputing technology for more complex problems such as reservoir simulations, said Jan E. Odegard, executive director at the Ken Kennedy Institute for Information Technology at Rice University.

Reservoir simulations are computer models that simulate how geological rock and fluid will behave over time as an oil or gas field is drilled. The models are based on massive amounts of seismic data, historical production data and other information, and are used to design and develop the most efficient strategies to maximize the recovery of oil and gas.

Reservoir simulations are far more complex than seismic imaging to scale across many computer processors, because they require the computers to constantly share and exchange data in a way that seismic imaging doesn't.

In traditional seismic imaging, the algorithms used permit each computer to work independently of each other on a small part of the problem, without needing to communicate constantly, Mr. Odegard said.

This constant communication between different computational elements is part of a technique called parallelism, which is at the heart of Exxon's supercomputing feat.

Parallelism refers to the ability to split a specific computer problem to perform evenly across many computational elements, such as computer cores which process the information.

Supercomputing experts say parallelism in high-performance computing is similar to distributed computing, used in data storage and analytic frameworks such as Hadoop. In both parallel and distributed computing, computational components located on networked computers coordinate actions by communicating with one another.

Parallelism is more complex because it requires tighter coordination and frequent communication in the exchanging of data between the elements, Mr. Odegard said.

"It's like managing a symphony orchestra, where everything has to be carefully coordinated," said Dr. Bill Gropp, director of the National Center for Supercomputing Applications.

Exxon initiated the supercomputing project with the NCSA in June 2015 and is the only oil-and-gas company to work with the organization.

Credit: By Sara Castellanos

Subject: Computers; Orchestras; Simulation; Energy industry; Natural gas utilities

Company / organization: Name: Rice University; NAICS: 611310; Name: National Center for Supercomputing Applications; NAICS: 541711; Nam e: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Mar 29, 2017

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1881639130

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1881639130?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

In Rebuke to Trump Policy, GE Chief Says 'Climate Change Is Real'; Exxon Mobil CEO, in his own blog post, says 'climate risks warrant action'

Author: Gryta, Thomas; Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Mar 2017: n/a.

ProQuest document link

Abstract: None available.

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General Electric Co. CEO Jeffrey Immelt defended efforts to reduce emissions and fight climate change, after President Donald Trump reversed rules that pushed U.S. utilities to use cleaner-burning fuels.

In a blog post to employees Wednesday, Mr. Immelt highlighted the administration's move and said climate change "should be addressed on a global basis through multinational agreements" such as the 2015 Paris Agreement. The U.S. hasn't withdrawn from that agreement, but the executive order on Tuesday fed concerns that the pact's targets will be hard to reach .

"We believe climate change is real and the science is well accepted," Mr. Immelt wrote. "We hope that the United States continues to play a constructive role in furthering solutions to these challenges."

The U.S. Chamber of Commerce has voiced support for President Trump's new policy, saying fewer regulations would lower domestic energy costs and spur economic growth. But many big U.S. corporations, from candy maker Mars Inc. to oil giant Exxon Mobil Corp., have pledged continued support for the Paris Agreement and efforts to reduce emissions.

"The science is clear and unambiguous: Climate change is real and human activity is a factor," closely held Mars said in a statement this week, adding it was "disappointed the administration has decided to roll back climate regulations."

On Tuesday, the world's biggest brewer, Anheuser-Busch InBev, committed to get 100% of its global electricity from renewable sources by 2025. "Cutting back on fossil fuels is good for the environment and good for business," CEO Carlos Brito said.

GE's Mr. Immelt has managed to avoid conflict with President Trump, who has been known to lash out at companies, especially on Twitter. The GE leader, who visited the White House in February, supports some administration policy plans, such as revising the tax code. At the same time, he has defended globalization amid nationalistic and protectionist trends in many countries.

In the post, Mr. Immelt said companies have to "have their own 'foreign policy'" and "learn to adjust to political volatility all over the world."

GE sells turbines for coal- and gas-fired power plants as well as wind turbines. It has a business unit called Current that is focused on energy savings. He said the conglomerate has spent $20 billion on research into reducing emissions, improving energy efficiency and cutting cost since 2005.

Mr. Trump's order begins a review of former President Barack Obama's Clean Power Plan , which would have required utilities to reduce carbon-dioxide emissions from power plants to 32% below 2005 levels by 2030.

Exxon Chief Executive Darren Woods has also publicly supported the Paris climate deal. Shortly after taking over from Rex Tillerson, who stepped down to become U.S. secretary of state, Mr. Woods wrote in a blog post that "climate risks warrant action and it's going to take all of us--business, governments and consumers--to make meaningful progress." The Paris deal is "an effective framework" for dealing with rising emissions, he said.

Days before the executive order, Exxon reiterated this position in a letter to White House energy adviser George David Banks. Exxon supports the deal in part because it includes pledges to reduce emissions from most of the world's countries, unlike the 1997 Kyoto Protocol climate deal, the letter said.

"We believe that the United States is well positioned to compete within the framework of the Paris Agreement, with abundant low-carbon resources such as natural gas," Peter Trelenberg, an Exxon manager of environmental policy and planning, said in the March 22 letter.

A number of bigger oil and gas companies have given at least tacit support to the Paris deal because they foresee natural gas benefitting from a possible carbon tax or similar steps to put a price on carbon. Smaller U.S. energy producers have praised the administration's steps to roll back limits on the emission of methane--a greenhouse gas believed to be more potent than carbon dioxide--during oil and gas production.

Annie Gasparro and Jennifer Maloney contributed to this article.

Write to Thomas Gryta at thomas.gryta@wsj.com and Bradley Olson at Bradley.Olson@wsj.com

Credit: By Thomas Gryta and Bradley Olson

Subject: Electric utilities; Industrial plant emissions; Climate change

Location: United States--US

People: Obama, Barack

Company / organization: Name: Twitter Inc; NAICS: 519130

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Mar 30, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1882089150

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1882089150?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Oil Companies' Modest Prize: Breaking Even; Exxon, Shell, Chevron and BP barely cover spending, dividends with cash

Author: Kent, Sarah

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Apr 2017: n/a.

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Abstract: None available.

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The world's biggest oil companies are struggling just to break even.

Despite billions of dollars in spending cuts and a modest oil-price rebound, Exxon Mobil Corp., Royal Dutch Shell PLC, Chevron Corp. and BP PLC didn't make enough money in 2016 to cover their costs, according to a Wall Street Journal analysis.

To calculate each companies' free cash flow--the excess cash remaining after costs--the Journal deducted the firm's dividends and capital expenditures from its cash from operations. All four firms fell short of cash flow for the year, although Exxon said it broke even by its own metrics, which exclude dividends. The analysis also showed that the four companies ended last year with more debt than they began it.

The firms are showing signs of improvement. For example, Shell and Exxon notched stronger quarters late last year. However, analysts point to challenges ahead as oil prices hover around $50 a barrel. BP says it will need oil at $60 a barrel to balance cash generation against capital expenditures and dividends, while Chevron is targeting $50 a barrel with the help of asset sales. Investment bank Jefferies estimates neither Shell nor Exxon require more than $50 a barrel, though those companies don't disclose break-even prices.

For companies once known as profit machines--whose executives were hauled before Congress in 2005 to explain their enormous earnings--their cash problems demonstrate just how unprepared they were for a historic crash and tepid recovery in oil prices. They have maintained the same large dividends they had when oil prices were over $100 a barrel, piling on debt and selling off assets to prioritize shareholders above all else.

The result is that spending on dividends and capital investments has ballooned above cash generated from their businesses. The issue has worried investors who expect those steady dividends because oil giants don't have the capacity to grow much. Exxon, Shell and their competitors are under pressure to show they can drum up cash to keep shelling out dividends.

"Since the oil price collapsed, it's been all about who's fastest down the road to breaking even," said Iain Reid, a senior analyst at Macquarie Capital. "In the short term, it's all about cash flow because people are still worried about the dividend."

Exxon, Shell and their peers spent much of the past three years scrambling to reassure investors that their dividends were safe amid the oil-price crash. These companies were already struggling to live within their means at elevated oil prices.

In response to the tumble in prices, the companies laid off thousands of workers, slashed billions in spending and piled on debt to protect the payouts. Despite disappointing profits last year, they say that medicine is now working.

Both Exxon and Shell managed to break even in the final quarter last year. In the fourth quarter, Exxon generated $400 million more than it spent and Shell made $1.2 billion over its outlays, according to the Journal's analysis. However, for the full year, Exxon spent nearly $7 billion more on developing new projects and dividends in 2016 than it generated in cash. Shell's costs last year were around $11 billion above its cash generation, the Journal's analysis shows.

"We are right in the middle of transforming the company," Shell Chief Executive Ben van Beurden told the CERAWeek conference in Houston in March. "We are going to be able to produce a free cash flow that is going to be more than twice as high as it was in the $90 era, but this time in a $60 world."

In a sign that investors remain fixated on companies' cash flow position, BP's share price tumbled around 4% when the company upgraded its break-even oil price to $60 a barrel in February.

International benchmark Brent crude hasn't hit that level since the middle of 2015.

"The ultimate goal of the company is to generate excess free cash flow," BP Chief Executive Bob Dudley said in a March interview in Houston. The company has seven new projects starting up this year and nine more under way that will add 800,000 barrels a day of new production by the end of the decade, pushing up returns.

BP expects to drive its break-even price back down toward $55 a barrel by the end of the year from about $60 now.

"The message going forward is good," Chevron Chief Executive John Watson told analysts in January. "Four years ago, I wouldn't have thought that would be the case at moderate prices."

But all of the companies' ability to break even rely on forces outside their control, especially oil prices.

In February, investment banks predicted oil prices would average about $57 a barrel this year, according to a Wall Street Journal poll. Analysts said prices could fall short of that mark depending on how quickly U.S. shale producers ramp back up and whether the Organization of the Petroleum Exporting Countries can maintain its agreement with other major oil producers to reduce output.

Chevron's $50-a-barrel break-even threshold relies in part on support from asset sales. Shell also is leaning heavily on plans to divest $30 billion of assets by next year to help it bring down its elevated debt levels. At the end of last year, the four companies' combined net debt amounted to $186.3 billion.

"This is the year when their credibility will be tested," said Jefferies analyst Jason Gammel, referring to big oil companies. "Some are more capable than others."

Even Exxon, the world's biggest publicly traded oil company, is showing rare signs of weakness. The company wrote down the value of more than $2 billion in U.S. assets earlier this year and shaved a chunk off its reserves estimates because of Securities and Exchange Commission rules. It ended 2016 with net debt totaling $39.1 billion--the highest debt level in the company's history.

Exxon said its balance sheet remains stronger than those of competitors.

Bradley Olson contributed to this article.

Write to Sarah Kent at sarah.kent@wsj.com

Credit: By Sarah Kent

Subject: Dividends; Investment banking; Crude oil prices; Capital expenditures

Location: United States--US

People: Dudley, Bob

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Congress; NAICS: 921120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Apr 2, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1882912720

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1882912720?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Exxon Eyes Brazil Expansion; Oil company in talks to partner with Petrobras on offshore oil projects

Author: Olson, Bradley; Kiernan, Paul

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 Apr 2017: n/a.

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Abstract: None available.

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Exxon Mobil Corp., the only big oil company without a major foothold in Brazil, is in talks to gain access to the country's prized deep-water resources, according to people familiar with the matter.

The talks have included discussions about a joint venture partnership through which Exxon would invest in projects with state-oil firm Petróleo Brasileiro SA, or Petrobras, as well as potentially buying stakes in offshore tracts the Brazilian government plans to lease out this year, the people said.

The specific terms of any agreement have yet to be completed. One person cautioned that talks between Exxon and Petrobras remained at a preliminary stage. But Exxon, which has eyed deep water resources in Brazil for at least a decade, is working with Hess Corp. in seeking to expand in the country after Brazil revised its regulations last year to attract greater foreign investment, the people said.

Representatives for Exxon, Hess and Petrobras declined to comment.

Exxon would join French giant Total SA and Norwegian state-controlled Statoil ASA, both of which have formed partnerships with Petrobras and expanded in Brazil in the past year. Royal Dutch Shell PLC has said it plans to invest $10 billion in the country over the next five years as part of a push to double its global deep water production .

The race to expand in Brazil comes as Petrobras is selling tens of billions of dollars in assets in a bid to work off the largest debt burden in the global oil industry. Brazil's conservative government, in power since the impeachment of former President Dilma Rousseff last year, sees foreign investment in the oil sector as key to an economic recovery after Brazil's worst recession on record.

Risks abound for the big oil companies. Petrobras, the dominant player in Brazil, is at the center of an epic corruption scandal and is financially crippled by its $118 billion debt load. And while the business environment has improved over the past nine months, political analysts say the 2018 presidential election could easily reverse that trend.

Still, Brazil is one of the most important oil frontiers, with as much as 50 billion barrels of recoverable resources. Some analysts say the country has the opportunity to emerge as the world's fifth-largest crude producer by 2025, behind only Saudi Arabia, Russia, the U.S. and Iraq.

"Everybody wants to get a piece of the pie," said Kjetil Solbraekke, senior vice president for South America at consultancy Rystad Energy. "These are probably the most prolific, high-returning oil assets available in the world."

Exxon's interest in a partnership is the latest example of a strategy the company has pursued in recent years to gain access to state-controlled oil and gas resources. To gain entry to certain areas, the Irving, Texas, company has offered foreign players a chance to diversify their holdings and invest alongside Exxon in other projects around the world.

Such a partnership was at the heart of a series of deals between Exxon and Russia in 2011 and 2012 that were later put on hold due to U.S. sanctions. The company has also formed partnerships with Qatar, where it holds a lucrative concession to produce natural gas, to develop gas export projects in the Gulf of Mexico and in Mozambique.

Joining forces with Petrobras in a similar fashion on a series of investments may be the only way to build an offshore position in Brazil, analysts said.

"If you don't have a relationship with a dominant state player, such as Petrobras in Brazil, it's very difficult to go anywhere," said Ruaraidh Montgomery, an analyst at energy consulting firm Wood Mackenzie.

An industry bonanza for Brazilian resources began more than a decade ago with the discovery by Petrobras of the Lula field, which is believed to hold billions of barrels of oil.

Named after then-Brazilian President Luiz Inácio Lula da Silva, the field lies below several miles of ocean water and a thick layer of salt that can make drilling risky and expensive.

Emboldened by $100-a-barrel oil prices, the left-leaning government that ruled Brazil until last year imposed onerous requirements on the oil industry, making Petrobras the sole operator of oil projects in the prized sub-salt layer on the Brazil continental shelf and demanding high levels of locally produced parts and labor.

Brazil's notoriously complex, costly and often unclear operating environment are among the reasons Exxon stayed on the sidelines as other oil majors piled in.

Seeking to woo investors, Brazil's new leaders opened up the sub-salt to foreign operators last year and reduced the so-called local-content requirements in February. The country is also likely later this year to auction numerous offshore blocks to companies wishing to drill exploration wells, officials said.

Those changes are among the primary reasons Exxon is motivated to expand in Brazil, said people familiar with the company's plans.

Exxon holds an interest in two deep-water blocks off Brazil's shores, including more than 160,000 acres, and drilled several dry holes in the country more than five years ago with Hess.

Petrobras Chief Executive Pedro Parente said in an interview at a Houston energy conference last month that "We are discussing partnerships and divestments" and that there was a "very high level of interest" in the company's assets.

Sarah Kent contributed to this article.

Write to Bradley Olson at Bradley.Olson@wsj.com and Paul Kiernan at paul.kiernan@wsj.com

Credit: By Bradley Olson and Paul Kiernan

Subject: Foreign investment; Debt restructuring; Petroleum industry; Offshore; Natural gas

Location: Russia United States--US Saudi Arabia Iraq South America Brazil

People: Rousseff, Dilma

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Total SA; NAICS: 211111, 324110, 447190; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Statoil ASA; NAICS: 211111, 324110; Name: Petroleos Brasileiro SA; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Apr 4, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1883597024

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1883597024?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Business News: Brazil's Deepwater Oil Lures Exxon

Author: Olson, Bradley; Kiernan, Paul

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]05 Apr 2017: B.3.

ProQuest document link

Abstract:

Brazil's conservative government, in power since the impeachment of former President Dilma Rousseff last year, sees foreign investment in the oil sector as key to an economic recovery after Brazil's worst recession on record.

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Exxon Mobil Corp., the only big oil company without a major foothold in Brazil, is in talks to gain access to the country's prized deepwater resources, according to people familiar with the matter.

The talks have included discussions about a joint-venture partnership through which Exxon would invest in projects with state-oil firm Petroleo Brasileiro SA, or Petrobras, as well as potentially buying stakes in offshore tracts the Brazilian government plans to lease out this year, the people said.

Petrobras Chief Executive Pedro Parente on Tuesday confirmed the talks and Exxon's interest. "This demonstration of interest happened on the part of several companies, including Exxon," he said. "But in terms of work toward a strategic partnership, we still don't have anything concrete with Exxon. But certainly on their part there was a very strong demonstration of interest in exploration in the Brazilian sub-salt."

Exxon, which has eyed deepwater resources in Brazil for at least a decade, is working with Hess Corp. in seeking to expand in the country after Brazil revised its regulations last year to attract more foreign investment, the people said. Representatives for Exxon and Hess declined to comment.

Exxon would join French giant Total SA and Norwegian state-controlled Statoil ASA, both of which have formed partnerships with Petrobras and expanded in Brazil over the past year. Royal Dutch Shell PLC has said it plans to invest $10 billion in the country over the next five years as part of a push to double its global deepwater production.

The race to expand in Brazil comes as Petrobras is selling tens of billions of dollars in assets in a bid to work off the largest debt burden in the global oil industry.

Brazil's conservative government, in power since the impeachment of former President Dilma Rousseff last year, sees foreign investment in the oil sector as key to an economic recovery after Brazil's worst recession on record. Risks abound for the big oil companies. Petrobras, the dominant player in Brazil, is at the center of a corruption scandal and is financially crippled by its $118 billion debt load. While the business environment has improved over the past nine months, political analysts say the 2018 presidential election could easily reverse that trend.

To gain entry to certain areas, Exxon has offered foreign players a chance to diversify their holdings and invest alongside it in other projects around the world. Joining forces with Petrobras in a similar fashion on a series of investments may be the only way to build an offshore position in Brazil, analysts said. "If you don't have a relationship with a dominant state player, such as Petrobras in Brazil, it's very difficult to go anywhere," said Ruaraidh Montgomery, an analyst at energy consulting firm Wood Mackenzie.

---

Sarah Kent contributed to this article.

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Credit: By Bradley Olson and Paul Kiernan

Subject: Foreign investment; Acquisitions & mergers; Debt restructuring

Location: Brazil

Company / organization: Name: Petroleos Brasileiro SA; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2017

Publication date: Apr 5, 2017

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1883930387

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1883930387?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Exxon Seeks U.S. Waiver to Resume Russia Oil Venture; Exxon Mobil applied to Treasury for exemption to resume venture with Rosneft forged in 2012 by Rex Tillerson

Author: Solomon, Jay; Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]19 Apr 2017: n/a.

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Abstract: None available.

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WASHINGTON--Exxon Mobil Corp. has applied to the Treasury Department for a waiver from U.S. sanctions on Russia in a bid to resume its joint venture with state oil giant PAO Rosneft, according to people familiar with the matter.

Exxon has been seeking U.S. permission to drill with Rosneft in several areas banned by sanctions and renewed a push for approval in March, shortly after its most recent chief executive, Rex Tillerson, became secretary of state on Feb. 1, according to one of these people. The company originally applied for a waiver to gain access to the Black Sea in July 2015 but its application wasn't approved, the person said.

The waiver request is likely to be closely scrutinized by members of Congress who are seeking to intensify sanctions on Russia in response to what the U.S. said was its use of cyberattacks to interfere with elections last year. Congress has also launched an investigation into whether there were ties between aides to Donald Trump and Russia's government during the presidential campaign and the political transition.

Mr. Tillerson during his time at Exxon forged a close working relationship with Russian President Vladimir Putin and with Rosneft, a company that is critical to Russia's oil-reliant economy.

The State Department is among the U.S. government agencies that have a say on Exxon's waiver application, which was made to the Treasury Department's Office of Foreign Assets Control, according to current and former U.S. officials.

Mr. Tillerson is recusing himself from any matters involving Exxon for two years, and won't be involved with any decision made by any government agency involving Exxon during this period, a State Department spokesman said.

Before he became secretary of state, Mr. Tillerson said Exxon opposes sanctions when they aren't applied in a uniform way. He testified during his confirmation hearings that neither he nor his former company ever lobbied against U.S. sanctions on Russia.

A spokesman for the Treasury Department said it doesn't comment on waiver applications. An Exxon spokesman said the company wouldn't discuss government deliberations on sanctions.

Russia's oil resources have long been among the most sought-after prizes by U.S. and European oil companies, and multiple U.S. presidential administrations in both parties have worked to help them enter the country. As much as 100 billion barrels of oil is believed to remain untapped in the country, but many Western companies have been stymied in their attempts to reach those reserves, often by geopolitical risks.

The sanctions affecting Rosneft ban U.S. companies from deals in the Arctic, Siberia and the Black Sea, areas that would require the sharing of cutting-edge drilling techniques. The sanctions, instituted after Russia annexed the Crimea region of Ukraine in 2014, also bar dealings with Rosneft's chief executive, Igor Sechin, saying he "has shown utter loyalty to Vladimir Putin--a key component to his current standing."

The sanctions effectively sidelined a landmark exploration deal Exxon, under Mr. Tillerson's leadership , had signed with Rosneft in 2012. The deal granted Exxon access to explore in Russia's Arctic waters, the right to drill with new technology in Siberia and the chance to explore in the deep waters of Russia's portion of the Black Sea.

Mr. Putin said Exxon and Rosneft might invest as much as $500 billion over the life of the partnership. In 2013, the Russian leader bestowed upon Mr. Tillerson the country's Order of Friendship in part for his role in developing the joint venture.

Exxon has reported it is exposed to losses from the Rosneft ventures of up to $1 billion before taxes, although the company has yet to recognize them on its books given its position that sanctions could be lifted.

Exxon received a U.S. waiver in September 2014, when the sanctions were first implemented and the company was working on a well in the Russian Arctic.

Mr. Tillerson and other Exxon executives asked the Treasury Department and senior Obama administration officials to allow the company to complete the well, saying it wouldn't be safe to leave before it was finished, according to people familiar with the matter. Treasury granted an extension, and the company completed drilling in October and eventually withdrew its employees from the project.

Exxon has disclosed that in 2015 and 2016 the company received a license from the Treasury Department allowing the company to undertake "limited administrative actions" in its partnership with Rosneft, according to company documents. Such permission would put Exxon in a position to move more quickly if it gets the green light to drill, according to the person familiar with the matter.

Exxon's proposal to drill in the Black Sea has been circulated in various federal departments in recent months, several people said. Exxon is arguing that it deserves a waiver there because under its deal with Rosneft its exploration rights in the Black Sea will expire if it doesn't act, and because some of its top foreign competitors aren't similarly restricted.

It is unusual for a company to seek a waiver based purely on future business prospects, according to former U.S. officials. American companies often seek waivers from sanctions citing humanitarian, trade or operational issues, the officials said.

Senator John McCain (R-Ariz.), the chairman of the Senate Armed Services Committee and a supporter of a bill that would limit President Donald Trump's ability to waive or weaken U.S. sanctions on Russia, tweeted in response to news of Exxon's waiver request, "Are they crazy? @WSJ: "Exxon Seeks U.S. Waiver to Resume #Russia Oil Venture."

Rep. Adam Schiff, the senior Democrat on the House Intelligence Committee investigating Russia's role in the 2016 U.S. presidential election, called on the Treasury to turn down Exxon's request.

"The Treasury Department should reject any waiver from sanctions which would allow Exxon Mobil or any other company to resume business with prohibited Russian entities," Mr. Schiff said in a statement. "Until Russia abides by the Minsk accords and ends its illegal occupation of Crimea, the only changes to sanctions should be their intensification, not their dilution."

Exxon opposed how the Obama administration applied sanctions on a number of its projects, according to people familiar with the matter, in part because the European Union, which has its own sanctions, granted waivers to its competitors to continue operating. Norway's Statoil ASA has a waiver for Arctic drilling in the Barents Sea. Italy's Eni SpA is allowed to operate in the Barents and Black seas, and has been aggressively exploring in cooperation with Russia.

"Exxon is worried it could get boxed out of the Black Sea by the Italians," said a person briefed on the company's waiver application.

The Black Sea may hold 30 billion barrels of oil, according to estimates from Russia, Turkey and Romania. Exxon has drilled there off the coast of Romania and holds a license for an area in Ukrainian waters.

Although a number of the biggest Western oil companies are seeking opportunities in the Black Sea, it remains a frontier area where few deep-water wells have been drilled, meaning estimates could change as more work is done, according to industry analysts.

Under the terms of its deal with Rosneft, Exxon needs an oil discovery in the Black Sea by the end of this year to obtain a Russian government license to drill. Unless Exxon receives approval soon, there might not be enough time to safely drill an exploratory well to be able to develop any discoveries, said oil industry experts.

Exxon has continued in recent years to drill and seek to expand its access around Sakhalin Island in Russia's Far East, an area to which sanctions don't apply.

As secretary of state, Mr. Tillerson, following through on his pledge to recuse himself from potential Exxon-related matters, stayed out of State Department deliberations on the permit for the Keystone XL project , a proposed pipeline that would carry oil from Canada into the U.S.

Due to the sanctions, other major components of the Exxon-Rosneft agreement were put on hold in 2014, shortly before Rosneft revealed that the first well the two companies drilled together in the arctic waters of the Kara Sea may hold as much as 750 million barrels of oil.

James Marson in Moscow contributed to this article.

Write to Jay Solomon at jay.solomon@wsj.com and Bradley Olson at Bradley.Olson@wsj.com

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* Inside Rex Tillerson's Negotiating Style: Cozy With Power, Unbending and Theatrical

* Key Findings From Intelligence Report on Russia's Efforts to Influence U.S. Election

* Italy's Eni Plans to Pump Arctic Oil, After Others Abandon the Field

Credit: By Jay Solomon and Bradley Olson

Subject: Foreign investment; Political campaigns; Sanctions; Waivers; Presidential elections; Drilling; Joint ventures

Location: Arctic region United States--US Black Sea Crimea Union of Soviet Socialist Republics--USSR Siberia Ukraine

People: Putin, Vladimir

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Congress; NAICS: 921120; Name: OAO Rosneft; NAICS: 324110; Name: Office of Foreign Assets Control; NAICS: 928110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Apr 19, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1889420053

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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Exxon Seeks Waiver for Russia Deal

Author: Solomon, Jay; Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]20 Apr 2017: A.1.

ProQuest document link

Abstract:

Exxon Mobil Corp. has applied to the Treasury Department for a waiver from U.S. sanctions on Russia in a bid to resume its joint venture with state oil giant PAO Rosneft, according to people familiar with the matter.

Links: 360 Link to Full Text

Full text:  

WASHINGTON -- Exxon Mobil Corp. has applied to the Treasury Department for a waiver from U.S. sanctions on Russia in a bid to resume its joint venture with state oil giant PAO Rosneft, according to people familiar with the matter.

Exxon has been seeking U.S. permission to drill with Rosneft in several areas banned by sanctions and renewed a push for approval in March, shortly after its most recent chief executive, Rex Tillerson, became secretary of state on Feb. 1, according to one of these people. The company originally applied for a waiver to gain access to the Black Sea in July 2015 but its application wasn't approved, the person said.

The waiver request is likely to be closely scrutinized by members of Congress who are seeking to intensify sanctions on Russia in response to what the U.S. said was its use of cyberattacks to interfere with elections last year. Congress has also launched an investigation into whether there were ties between aides to Donald Trump and Russia's government during the presidential campaign and the political transition.

Mr. Tillerson during his time at Exxon forged a close working relationship with Russian President Vladimir Putin and with Rosneft, a company that is critical to Russia's oil-reliant economy.

The State Department is among the U.S. government agencies that have a say on Exxon's waiver application, which was submitted to the Treasury Department's Office of Foreign Assets Control, according to current and former U.S. officials.

Mr. Tillerson is recusing himself from any matters involving Exxon for two years, and won't be involved with any decision made by any government agency involving Exxon during this period, a State Department spokesman said.

Before he became secretary of state, Mr. Tillerson said Exxon opposes sanctions when they aren't applied in a uniform way. He testified during his confirmation hearings that neither he nor his former company ever lobbied against U.S. sanctions on Russia.

A spokesman for the Treasury Department said it doesn't comment on waiver applications. An Exxon spokesman said the company wouldn't discuss government deliberations on sanctions.

Russia's oil resources have long been among the most sought-after prizes by U.S. and European oil companies, and multiple U.S. presidential administrations in both parties have worked to help them enter the country. As much as 100 billion barrels of oil is believed to remain untapped in the country, but many Western companies have been stymied in their attempts to reach those reserves, often by geopolitical risks.

The sanctions affecting Rosneft ban U.S. companies from deals in the Arctic, Siberia and the Black Sea, areas that would require the sharing of cutting-edge drilling techniques. The sanctions, instituted after Russia annexed the Crimea region of Ukraine in 2014, also bar dealings with Rosneft's chief executive, Igor Sechin.

The sanctions effectively sidelined a landmark exploration deal Exxon, under Mr. Tillerson's leadership, had signed with Rosneft in 2012. The deal granted Exxon access to explore in Russia's Arctic waters, the right to drill with new technology in Siberia and the chance to explore in the deep waters of Russia's portion of the Black Sea.

Mr. Putin said Exxon and Rosneft might invest as much as $500 billion over the life of the partnership. In 2013, the Russian leader bestowed upon Mr. Tillerson the country's Order of Friendship in part for his role in developing the joint venture.

Exxon has reported it is exposed to losses from the Rosneft ventures of up to $1 billion before taxes, although the company has yet to recognize them on its books given its position that sanctions could be lifted.

Exxon received a U.S. waiver in September 2014, when the sanctions were first implemented and the company was working on a well in the Russian Arctic.

Mr. Tillerson and other Exxon executives asked the Treasury Department and senior Obama administration officials to allow the company to complete the well, saying it wouldn't be safe to leave before it was finished, according to people familiar with the matter. Treasury granted an extension, and the company completed drilling in October and eventually withdrew its employees from the project.

Exxon's proposal to drill in the Black Sea has been circulated in various federal departments in recent months, several people said. Exxon is arguing that it deserves a waiver there because under its deal with Rosneft its exploration rights in the Black Sea will expire if it doesn't act, and because some of its top foreign competitors aren't similarly restricted.

It is unusual for a company to seek a waiver based purely on future business prospects, according to former U.S. officials. American companies often seek waivers from sanctions citing humanitarian, trade or operational issues, the officials said.

Senator John McCain (R., Ariz.), the chairman of the Senate Armed Services Committee and a supporter of a bill that would limit President Donald Trump's ability to waive or weaken U.S. sanctions on Russia, tweeted in response to news of Exxon's waiver request, "Are they crazy? @WSJ: "Exxon Seeks U.S. Waiver to Resume #Russia Oil Venture."

Rep. Adam Schiff, the senior Democrat on the House Intelligence Committee investigating Russia's role in the 2016 presidential election, called on the Treasury to turn down Exxon's request. "Until Russia abides by the Minsk accords and ends its illegal occupation of Crimea, the only changes to sanctions should be their intensification, not their dilution," Mr. Schiff said.

Exxon opposed how the Obama administration applied sanctions on a number of its projects, according to people familiar with the matter, in part because the European Union, which has its own sanctions, granted waivers to its competitors to continue operating.

Italy's Eni SpA is allowed to operate in the Barents and Black seas and has been aggressively exploring in cooperation with Russia. "Exxon is worried it could get boxed out of the Black Sea by the Italians," said a person briefed on the company's waiver application.

The Black Sea may hold 30 billion barrels of oil, according to estimates from Russia, Turkey and Romania. Under the terms of its deal with Rosneft, Exxon needs an oil discovery in the Black Sea by the end of this year to obtain a Russian government license to drill.

---

James Marson in Moscow contributed to this article.

Credit: By Jay Solomon and Bradley Olson

Subject: Sanctions; Joint ventures; Waivers; Offshore drilling

Location: Black Sea Russia

Company / organization: Name: Department of the Treasury; NAICS: 921130; Name: OAO Rosneft; NAICS: 324110; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.1

Publication year: 2017

Publication date: Apr 20, 2017

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1889637411

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1889637411?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Political Path Narrows for Exxon Deal With Russian Firm; Bipartisan opposition takes shape; Rubio says waiver sought by oil giant isn't 'in America's national security interest'

Author: Olson, Bradley; Solomon, Jay

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 Apr 2017: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

When President Donald Trump picked Rex Tillerson, the chief executive of Exxon Mobil Corp., to be his secretary of state, some oil analysts assumed the appointment signaled a potential revival of the firm's halted partnership with Russia.

Four months later, with Exxon now seeking a waiver from U.S. sanctions to allow it to drill with Russian state-oil giant PAO Rosneft in the Black Sea, the political path for such an opportunity appears to be narrowing significantly.

Congress and the Federal Bureau of Investigation continue to probe ties between aides to Mr. Trump and Russia's government. Many lawmakers back expanded sanctions in response to assessments by the U.S. intelligence community that Moscow interfered in the U.S. presidential election.

"While a waiver to allow business with prohibited Russian entities may be in Exxon Mobil's interest, it would clearly not be in America's national security interest," Sen. Marco Rubio (R., Fla.) a member of the Senate Foreign Relations Committee, said in a statement to The Wall Street Journal.

Mr. Rubio joined other members of Congress--of both parties--in urging the Trump administration to reject Exxon's request to the Treasury Department's Office of Foreign Assets Control, saying Russia hasn't done anything to merit the loosening of sanctions. Exxon's request was floated in 2015 and renewed in March, according to a person familiar with the matter.

"Vladimir Putin has taken no steps that would merit the removal of any sanctions," Sen. Bob Menendez (D., N.J.) said in a statement Thursday.

"The last thing the United States should be doing is clearing the way for lucrative new business opportunities for Putin and his cronies," said Rep. Eliot Engel (D., N.Y.), the top-ranked Democrat on the House Committee on Foreign Affairs.

"Are they crazy?" was the message put up on Twitter on Wednesday by Sen. John McCain (R, Ariz.), the chairman of the Senate Armed Services Committee, in response to the news of Exxon's waiver request.

Mr. Rubio and Republican Sens. Lindsey Graham of South Carolina had both expressed reservations about Mr. Tillerson's nomination to be Secretary of State before voting to confirm him. A spokesman for Mr. Graham said he was unavailable.

Neither Exxon nor the U.S. Treasury Department would comment on the waiver request. State Department officials noted Mr. Tillerson has pledged to recuse himself for two years from any issue involving his former company.

Exxon has sought permission to drill in Russia's Black Sea waters since mid-2015, a request the Obama administration didn't approve. Exxon is wary of the efforts of rivals such as Italian oil company Eni SpA and Norway's Statoil ASA to continue to explore Russian prospects despite European Union sanctions.

Exxon has until the end of the year to drill in the Black Sea, according to its agreement with Rosneft. It can obtain a license to operate only if it makes a discovery, a possibility that will become increasingly unlikely if Treasury doesn't grant a waiver soon.

Mr. Tillerson said earlier this month that U.S.-Russia relations had reached a "low point," in comments following U.S. bombing of a Syrian air base in response to the regime's apparent use of chemical weapons.

Write to Bradley Olson at Bradley.Olson@wsj.com and Jay Solomon at jay.solomon@wsj.com

Credit: By Bradley Olson and Jay Solomon

Subject: National security; International relations; Sanctions; Congressional committees

Location: South Carolina Russia United States--US Black Sea

People: Trump, Donald J McCain, John Engel, Eliot L Graham, Lindsey Putin, Vladimir

Company / organization: Name: Senate-Armed Services, Committee on; NAICS: 921120; Name: Senate-Foreign Relations, Committee on; NAICS: 921120; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Congress; NAICS: 921 120; Name: House of Representatives-Foreign Affairs, Committee on; NAICS: 921120; Name: Office of Foreign Assets Control; NAICS: 928110; Name: Federal Bureau of Investi gation--FBI; NAICS: 922120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Apr 20, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1889886838

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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Trump Administration Won't Waive Sanctions for Oil Project Exxon Planned in Russia; Exxon Mobil renewed push for waiver to drill in Black Sea in March

Author: Solomon, Jay; Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 Apr 2017: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

WASHINGTON--President Donald Trump, whose family and political aides have faced scrutiny over their ties to Russia, rejected a bid by Exxon Mobil Corp. to sidestep U.S. sanctions against Moscow and resume an oil venture with a politically powerful Russian energy firm.

The announcement Friday comes as the White House pushes to firm up the president's foreign-policy and domestic agenda as he nears his 100th day in office next week.

Mr. Trump's decision to block Exxon Mobil, until the end of last year headed by Secretary of State Rex Tillerson, also shows how efforts to build bridges with Russian President Vladimir Putin are proving difficult, senior U.S. officials said.

Congressional and Federal Bureau of Investigation probes into ties between Mr. Trump's aides and Russian officials continue to dominate Washington's political debate, these officials said. And Mr. Putin repeatedly has made any strengthening of ties harder by maintaining Moscow's support for Syrian President Bashar al-Assad and escalating a crackdown on the Kremlin's political opponents at home, the officials said.

The Wall Street Journal reported on Wednesday that Exxon last month sought a waiver on Russian sanctions for its oil exploration venture with PAO Rosneft, the Russian energy conglomerate closely aligned with Mr. Putin. The company had originally submitted the application in 2015, and revived it in March.

The venture was frozen in 2014 after the Obama administration placed sanctions on Rosneft and its chief executive, Igor Sechin, in retaliation for Russia's annexation of the Crimea region of Ukraine .

"In consultation with President Donald J. Trump, the Treasury Department will not be issuing waivers to U.S. companies, including Exxon, authorizing drilling prohibited by current Russian sanctions," Treasury Secretary Steven Mnuchin said in a statement Friday. U.S. officials said Mr. Trump made the decision after close consultations with Mr. Mnuchin, a former Goldman Sachs executive.

The Trump administration's decision likely will make it impossible for Exxon to drill in Russia's Black Sea waters before its agreement with Rosneft expires at the end of this year. Under the companies' agreement, Exxon has until 2023 to explore some of Russia's Arctic waters if sanctions are lifted, the company has said.

"We understand the statement today by Secretary Mnuchin in consultation with President Trump," said Alan Jeffers, an Exxon Mobil spokesman. "Our 2015 application for a license under the provisions outlined in the U.S. sanctions was made to enable our company to meet its contractual obligations under a joint venture agreement in Russia, where competitor companies are authorized to undertake such work under European sanctions."

News of Exxon's Treasury application drew sharp criticism in Congress over the past two days. Leading Democrats and some Republicans have said the Trump White House should be increasing sanctions on Russia for its alleged effort to interfere in last year's U.S. election , rather than loosening them. Russia has denied any interference in the election.

Lawmakers also raised concerns the Trump administration could face a conflict of interest in ruling on the Exxon application, given Mr. Tillerson's previous position as CEO, a job he held for 11 years. State Department officials said this past week that Mr. Tillerson has recused himself from any issues related to Exxon for two years.

"Given Russia's well-documented and troubling activities around the world, it is troubling Exxon Mobil would continue to press for its narrow economic advantage at the expense of our national interests," Sen. Ben Cardin of Maryland, the ranking Democrat on the Senate Foreign Relations Committee, said on Friday. "The deals they are seeking would put money in the pockets of Russian oligarchs and the Russian treasury, guaranteed to be used against America, our interests, and our allies."

Lawmakers have said they are investigating a string of contacts between Mr. Trump's aides and Russian officials during the campaign and the presidential transition. These include meetings and phone calls between his former national security adviser, Mike Flynn, and Russia's ambassador to Washington, in which U.S. sanctions on Russia were discussed. They also include meetings that Mr. Trump's son-in-law, Jared Kushner , held with the head of a state-run Russian bank that is on a U.S. sanctions list.

The administration has been in an awkward dance with the Kremlin since Mr. Trump assumed office, after his repeated calls during the campaign for warmer ties.

Earlier this month, the Pentagon launched airstrikes on a Syrian military base believed to have been involved in a chemical-weapons attack against Syrian civilians . The U.S. missiles risked hitting Russian troops that were stationed at the base, according to U.S. officials. Russia and Syria are allies.

Mr. Trump also authorized Montenegro this month to become the 29th member of the North Atlantic Treaty Organization, despite repeated protests by Russia.

Mr. Tillerson visited Moscow last week to try to forge a more united front and met with Mr. Putin for more than two hours. But the former Exxon Mobil chief left Russia saying Washington's relations with Moscow were at a "low point."

"The problem with sanctions is that they're right there at the center of what went most wrong in Russian-American relations, and that is, of course, the Ukraine crisis," said Stephen Sestanovich, a Columbia University professor and the State Department's ambassador-at-large to the former Soviet Union during the Clinton administration. "There's a low level of trust."

Exxon Mobil's failure to win approval for its Black Sea venture marks a blow for the Texas company's hopes for expansion and could aid its rivals. In 2012, Mr. Putin had said the Exxon partnership could eventually spend up to $500 billion together.

Although some of the European Union's sanctions were crafted in a similar fashion as those in the U.S., they allowed many existing agreements and plans to proceed. Because they allowed companies with contracts under execution at the time of sanctions in 2014 to continue with operations, Italian oil company Eni SpA is now actively exploring Russia's Black Sea and Barents Sea waters, according to the company.

Last year, Norway's Statoil ASA drilled two wells in the Sea of Okhotsk at depths only slightly shallower than the 150-meter limit outlined by the EU. French energy company Total SA in late 2013 launched a giant natural-gas export project in Russia's Yamal Peninsula above the Arctic circle. The country now accounts for about a fifth of Total's reserves, according to Tudor Pickering Holt & Co.

Exxon also has projects that were allowed to proceed in Russia, including further developments of its operations on Sakhalin Island in the country's Far East. Because sanctions focused on the transfer of energy technology in the Arctic, deep water or onshore drilling techniques, the Sakhalin operations were exempt.

The company has said it is exposed to as much as $1 billion in losses from its investments that have been put on hold by sanctions.

Felicia Schwartz contributed to this article.

Write to Jay Solomon at jay.solomon@wsj.com and Bradley Olson at Bradley.Olson@wsj.com

Related

* Exxon Active in Sanctions Debates, but Rex Tillerson Denies Lobbying (Jan. 11)

* Sanctions Over Ukraine Put Exxon at Risk (Sept. 11, 2014)

Credit: By Jay Solomon and Bradley Olson

Subject: Military sales

Location: Russia United States--US Black Sea

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Republican Party; NAICS: 813940; Name: Democratic Party; NAICS: 813940

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Apr 21, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1890247450

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1890247450?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-01-23

Database: The Wall Street Journal

Trump Administration Won't Waive Sanctions for Oil Project Exxon Planned in Russia; Exxon Mobil renewed push for waiver to drill in Black Sea in March

Author: Solomon, Jay; Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Apr 2017: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

WASHINGTON--President Donald Trump, whose family and political aides have faced scrutiny over their ties to Russia, rejected a bid by Exxon Mobil Corp. to sidestep U.S. sanctions against Moscow and resume an oil venture with a politically powerful Russian energy firm.

The announcement Friday comes as the White House pushes to firm up the president's foreign-policy and domestic agenda as he nears his 100th day in office next week.

Mr. Trump's decision to block Exxon Mobil, until the end of last year headed by Secretary of State Rex Tillerson, also shows how efforts to build bridges with Russian President Vladimir Putin are proving difficult, senior U.S. officials said.

Congressional and Federal Bureau of Investigation probes into ties between Mr. Trump's aides and Russian officials continue to dominate Washington's political debate, these officials said. And Mr. Putin repeatedly has made any strengthening of ties harder by maintaining Moscow's support for Syrian President Bashar al-Assad and escalating a crackdown on the Kremlin's political opponents at home, the officials said.

The Wall Street Journal reported on Wednesday that Exxon last month renewed a push for approval of a waiver on Russian sanctions for its oil exploration venture with PAO Rosneft, the Russian energy conglomerate closely aligned with Mr. Putin, according to a person familiar with the discussion. The company had originally submitted the application in 2015.

The venture was frozen in 2014 after the Obama administration placed sanctions on Rosneft and its chief executive, Igor Sechin, in retaliation for Russia's annexation of the Crimea region of Ukraine .

"In consultation with President Donald J. Trump, the Treasury Department will not be issuing waivers to U.S. companies, including Exxon, authorizing drilling prohibited by current Russian sanctions," Treasury Secretary Steven Mnuchin said in a statement Friday. U.S. officials said Mr. Trump made the decision after close consultations with Mr. Mnuchin, a former Goldman Sachs executive.

The Trump administration's decision likely will make it impossible for Exxon to drill in Russia's Black Sea waters before its agreement with Rosneft expires at the end of this year. Under the companies' agreement, Exxon has until 2023 to explore some of Russia's Arctic waters if sanctions are lifted, the company has said.

"We understand the statement today by Secretary Mnuchin in consultation with President Trump," said Alan Jeffers, an Exxon Mobil spokesman. "Our 2015 application for a license under the provisions outlined in the U.S. sanctions was made to enable our company to meet its contractual obligations under a joint venture agreement in Russia, where competitor companies are authorized to undertake such work under European sanctions."

News of Exxon's Treasury application drew sharp criticism in Congress over the past two days. Leading Democrats and some Republicans have said the Trump White House should be increasing sanctions on Russia for its alleged effort to interfere in last year's U.S. election , rather than loosening them. Russia has denied any interference in the election.

Lawmakers also raised concerns the Trump administration could face a conflict of interest in ruling on the Exxon application, given Mr. Tillerson's previous position as CEO, a job he held for 11 years. State Department officials said this past week that Mr. Tillerson has recused himself from any issues related to Exxon for two years.

"Given Russia's well-documented and troubling activities around the world, it is troubling Exxon Mobil would continue to press for its narrow economic advantage at the expense of our national interests," Sen. Ben Cardin of Maryland, the ranking Democrat on the Senate Foreign Relations Committee, said on Friday. "The deals they are seeking would put money in the pockets of Russian oligarchs and the Russian treasury, guaranteed to be used against America, our interests, and our allies."

Lawmakers have said they are investigating a string of contacts between Mr. Trump's aides and Russian officials during the campaign and the presidential transition. These include meetings and phone calls between his former national security adviser, Mike Flynn, and Russia's ambassador to Washington, in which U.S. sanctions on Russia were discussed. They also include meetings that Mr. Trump's son-in-law, Jared Kushner , held with the head of a state-run Russian bank that is on a U.S. sanctions list.

The administration has been in an awkward dance with the Kremlin since Mr. Trump assumed office, after his repeated calls during the campaign for warmer ties.

Earlier this month, the Pentagon launched airstrikes on a Syrian military base believed to have been involved in a chemical-weapons attack against Syrian civilians . The U.S. missiles risked hitting Russian troops that were stationed at the base, according to U.S. officials. Russia and Syria are allies.

Mr. Trump also authorized Montenegro this month to become the 29th member of the North Atlantic Treaty Organization, despite repeated protests by Russia.

Mr. Tillerson visited Moscow last week to try to forge a more united front and met with Mr. Putin for more than two hours. But the former Exxon Mobil chief left Russia saying Washington's relations with Moscow were at a "low point."

"The problem with sanctions is that they're right there at the center of what went most wrong in Russian-American relations, and that is, of course, the Ukraine crisis," said Stephen Sestanovich, a Columbia University professor and the State Department's ambassador-at-large to the former Soviet Union during the Clinton administration. "There's a low level of trust."

Exxon Mobil's failure to win approval for its Black Sea venture marks a blow for the Texas company's hopes for expansion and could aid its rivals. In 2012, Mr. Putin had said the Exxon partnership could eventually spend up to $500 billion together.

Although some of the European Union's sanctions were crafted in a similar fashion as those in the U.S., they allowed many existing agreements and plans to proceed. Because they allowed companies with contracts under execution at the time of sanctions in 2014 to continue with operations, Italian oil company Eni SpA is now actively exploring Russia's Black Sea and Barents Sea waters, according to the company.

Last year, Norway's Statoil ASA drilled two wells in the Sea of Okhotsk at depths only slightly shallower than the 150-meter limit outlined by the EU. French energy company Total SA in late 2013 launched a giant natural-gas export project in Russia's Yamal Peninsula above the Arctic circle. The country now accounts for about a fifth of Total's reserves, according to Tudor Pickering Holt & Co.

Exxon also has projects that were allowed to proceed in Russia, including further developments of its operations on Sakhalin Island in the country's Far East. Because sanctions focused on the transfer of energy technology in the Arctic, deep water or onshore drilling techniques, the Sakhalin operations were exempt.

The company has said it is exposed to as much as $1 billion in losses from its investments that have been put on hold by sanctions.

Felicia Schwartz contributed to this article.

Write to Jay Solomon at jay.solomon@wsj.com and Bradley Olson at Bradley.Olson@wsj.com

Related

* Exxon Active in Sanctions Debates, but Rex Tillerson Denies Lobbying (Jan. 11)

* Sanctions Over Ukraine Put Exxon at Risk (Sept. 11, 2014)

Credit: By Jay Solomon and Bradley Olson

Subject: Agreements; International relations; Political campaigns; Presidents; Sanctions

Location: Russia Arctic region United States--US Black Sea Crimea Ukraine

People: Trump, Donald J Assad, Bashar Al

Company / organization: Name: Goldman Sachs Group Inc; NAICS: 523110, 523120; Name: OAO Rosneft; NAICS: 324110; Name: Federal Bureau of Investigation--FBI; NAICS: 922120; Name: Republican Party; NAICS: 813940; Name: Democratic Party; NAICS: 813940

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Apr 22, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1890434393

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1890434393?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-01-23

Database: The Wall Street Journal

Trump Rebuffs Exxon on Russia

Author: Solomon, Jay; Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]22 Apr 2017: A.1.

ProQuest document link

Abstract:

"Given Russia's well-documented and troubling activities around the world, it is troubling Exxon Mobil would continue to press for its narrow economic advantage at the expense of our national interests," Sen. Ben Cardin of Maryland, the ranking Democrat on the Senate Foreign Relations Committee, said on Friday.

Links: 360 Link to Full Text

Full text:  

WASHINGTON -- President Donald Trump, whose family and political aides have faced scrutiny over their ties to Russia, rejected a bid by Exxon Mobil Corp. to sidestep U.S. sanctions against Moscow and resume an oil venture with a politically powerful Russian energy firm.

The announcement Friday comes as the White House pushes to firm up the president's foreign-policy and domestic agenda as he nears his 100th day in office next week.

Mr. Trump's decision to block Exxon Mobil, until the end of last year headed by Secretary of State Rex Tillerson, also shows how efforts to build bridges with Russian President Vladimir Putin are proving difficult, senior U.S. officials said.

Congressional and Federal Bureau of Investigation probes into ties between Mr. Trump's aides and Russian officials continue to dominate Washington's political debate, these officials said. And Mr. Putin repeatedly has made any strengthening of ties harder by maintaining Moscow's support for Syrian President Bashar al-Assad and escalating a crackdown on the Kremlin's political opponents at home, the officials said.

The Wall Street Journal reported on Wednesday that Exxon last month renewed a push for approval of a waiver on Russian sanctions for its oil exploration venture with PAO Rosneft, the Russian energy conglomerate closely aligned with Mr. Putin, according to a person familiar with the discussion. The company had originally submitted the application in 2015.

The venture was frozen in 2014 after the Obama administration placed sanctions on Rosneft and its chief executive, Igor Sechin, in retaliation for Russia's annexation of the Crimea region of Ukraine.

"In consultation with President Donald J. Trump, the Treasury Department will not be issuing waivers to U.S. companies, including Exxon, authorizing drilling prohibited by current Russian sanctions," Treasury Secretary Steven Mnuchin said in a statement Friday. U.S. officials said Mr. Trump made the decision after close consultations with Mr. Mnuchin, a former Goldman Sachs executive.

The Trump administration's decision likely will make it impossible for Exxon to drill in Russia's Black Sea waters before its agreement with Rosneft expires at the end of this year. Exxon has until 2023 to explore some of Russia's Arctic waters if sanctions are lifted.

"We understand the statement today by Secretary Mnuchin in consultation with President Trump," said Alan Jeffers, an Exxon Mobil spokesman. "Our 2015 application for a license under the provisions outlined in the U.S. sanctions was made to enable our company to meet its contractual obligations under a joint venture agreement in Russia, where competitor companies are authorized to undertake such work under European sanctions."

News of Exxon's Treasury application drew sharp criticism in Congress over the past two days. Leading Democrats and some Republicans have said the Trump White House should be increasing sanctions on Russia for its alleged effort to interfere in last year's U.S. election, rather than loosening them. Russia has denied any interference in the election.

Lawmakers also raised concerns the Trump administration could face a conflict of interest in ruling on the Exxon application, given Mr. Tillerson's previous position as CEO. State Department officials said this past week that Mr. Tillerson has recused himself from any issues related to Exxon for two years.

"Given Russia's well-documented and troubling activities around the world, it is troubling Exxon Mobil would continue to press for its narrow economic advantage at the expense of our national interests," Sen. Ben Cardin of Maryland, the ranking Democrat on the Senate Foreign Relations Committee, said on Friday. "The deals they are seeking would put money in the pockets of Russian oligarchs and the Russian treasury, guaranteed to be used against America, our interests, and our allies."

Lawmakers have said they are investigating a string of contacts between Mr. Trump's aides and Russian officials during the campaign and the presidential transition. These include meetings and phone calls between his former national security adviser, Mike Flynn, and Russia's ambassador to Washington, in which U.S. sanctions on Russia were discussed. They also include meetings that Mr. Trump's son-in-law, Jared Kushner, held with the head of a state-run Russian bank that is on a U.S. sanctions list.

The administration has been in an awkward dance with the Kremlin since Mr. Trump assumed office, after his repeated calls during the campaign for warmer ties.

Earlier this month, the Pentagon launched airstrikes on a Syrian military base believed to have been involved in a chemical-weapons attack against Syrian civilians. The U.S. missiles risked hitting Russian troops that were stationed at the base, according to U.S. officials. Russia and Syria are allies.

Mr. Trump also authorized Montenegro this month to become the 29th member of the North Atlantic Treaty Organization, despite repeated protests by Russia.

Mr. Tillerson visited Moscow last week and met with Mr. Putin for more than two hours. But the former Exxon chief left Russia saying Washington's relations with Moscow were at a "low point."

"The problem with sanctions is that they're right there at the center of what went most wrong in Russian-American relations, and that is, of course, the Ukraine crisis," said Stephen Sestanovich, a Columbia University professor and the State Department's ambassador-at-large to the former Soviet Union during the Clinton administration. "There's a low level of trust."

---

Felicia Schwartz contributed to this article.

Credit: By Jay Solomon and Bradley Olson

Subject: Sanctions; Offshore drilling

Location: United States--US Russia

People: Trump, Donald J

Company / organization: Name: OAO Rosneft; NAICS: 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.1

Publication year: 2017

Publication date: Apr 22, 2017

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1890513775

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1890513775?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Exxon, Chevron Earnings Point to Sign of Strengthening Oil Industry; Gains reflect a rally in oil prices from 2016 lows and revenue from new projects

Author: Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Apr 2017: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

The world's biggest oil companies are seeing their highest profits in more than a year, an early signal that they may be turning a corner on their long path to recovery.

Exxon Mobil Corp. on Friday reported its best quarter since 2015, more than doubling profit from the first three months of 2016 when crude prices fell to the lowest level in more than a decade. The company also generated enough cash to pay for new investments and dividends, an increasingly important measure of resilience for big oil companies, which have been piling on debt.

Chevron Corp., which reported a quarterly loss last year, on Friday posted a profit of $2.7 billion. The rosy results came a day after French energy company Total SA reported a 77% rise. Royal Dutch Shell PLC and BP PLC, which will report next week, are expected to show sharp increases.

The improvements are the latest in a winning run of first-quarter earnings this month for large companies, including Google parent Alphabet Inc., which reported a 29% jump in profit Thursday; and General Motors Co., which on Friday reported a 34% increase , thanks in part to strong U.S. sales of pickup trucks and sport-utility vehicles. Financial companies also generally had strong quarters including Bank of America Corp., which earlier posted a 40% profit increase.

For the big oil companies, the gains reflect a rally in oil prices from last year's lows, and revenue from new projects that have come online after years of multibillion-dollar investments in far-flung places including Angola, Qatar, Australia, Canada and Russia.

They also highlight severe belt tightening by companies that have been retooling strategies as they brace for a potentially extended period of challenging oil prices.

"These companies are cutting their cost structures," said Brian Youngberg, an energy analyst at Edward Jones. "They are leaner and have managed to get more out of each dollar they spend, and it is showing in their results."

Earnings growth for oil-and-gas companies could have hit double digits in the first quarter of 2017, said Joseph Tanious, senior investment strategist for Bessemer Trust. "When oil prices were dipping lower, that was having a drag on the overall results for the S&P 500," he said. "Now we're seeing the opposite of that."

In the U.S., companies also face the prospect of less burdensome regulations under President Donald Trump, who signed an executive order on Friday to ease restrictions on offshore drilling . That order, however, is expected to have limited immediate impact, experts said, because current prices still make drilling in the Arctic Ocean and other affected areas economically unattractive.

Still, major oil companies face significant challenges as they attempt to repair the damage done by the worst price crash in a generation. Among the five largest Western energy giants, net debt more than tripled in the past five years to about $214 billion as they borrowed to make ends meet .

Balance-sheet woes were among the reasons many were downgraded by ratings firms. Exxon, for instance, lost its triple-A rating from S&P Global Ratings last year for the first time since the Great Depression.

Chevron sold assets to generate enough cash to pay for new spending and dividends, but new projects are likely to bring the company closer to Exxon's performance later in the year. As more money flows in, Chevron is likely to spend it reducing its debt ratio of about 24%, Chief Financial Officer Pat Yarrington said Friday.

"It's an OK place to be," she said. "Over time, I'd like to see us move a little lower in the debt profile."

Optimism from the relatively strong quarter has been tempered by growing concerns over whether a frenzied return to U.S. drilling will once again swamp markets.

As oil prices recovered in the past year to prices above $50 a barrel, U.S. oil companies returned to shale fields at a breakneck pace. The number of rigs operating has more than doubled from a year ago, according to RigData. U.S. production has risen to about 9.3 million barrels a day, just 3% shy of the 2015 peak, according to Rystad Energy.

The increase has been driven in part by lower costs that have improved drilling prospects in a number of fields, as well as positive sentiment stemming from a production cut from the Organization of the Petroleum Exporting Countries.

Still, some investors and market analysts are concerned the pace of the U.S. return to drilling has been too hot, raising the prospect that new shale production could bring so much new supply, prices will remain mired around $50 a barrel for years.

"Volumes are growing, particularly driven by North America," said Jeff Woodbury, Exxon's vice president of investor relations. That factor and others "indicate the need to be cautious going forward."

While a number of companies have managed to generate enough cash at that price to pay for new investment and dividends, executives have acknowledged it will be difficult for them to grow significantly unless oil prices rise further. The pipeline of new projects has dwindled significantly as the companies put the brakes on spending, a step that has the potential to limit growth opportunities within several years.

To make up the difference, Exxon and Chevron are turning for the most part to the Permian Basin in West Texas and New Mexico, an area of great promise in the industry that so far has generated little in the way of profits for many operators. Both companies have unveiled dramatic growth plans for the area.

Chevron said its U.S. production operations earned $80 million in the quarter. Exxon lost money for the ninth straight quarter in its U.S. drilling business, losing $18 million. That was an improvement from a loss of more than $800 million a year ago.

Still, the continued struggle to turn a profit in that business has troubled some investors, given that Exxon and Chevron have made shale operations a major focus for future growth and profitability.

Shares of Exxon, down 9% so far this year, rose slightly to $81.65. Chevron shares climbed about 1% to $106.70.

Anne Steele and Erin Ailworth contributed to this article.

Write to Bradley Olson at Bradley.Olson@wsj.com

Related

* Cost Cuts, Higher Oil Prices Lift Chevron

* Put a Kitten in Your Tank: Big Oil Gets Less Bold

Credit: By Bradley Olson

Subject: Profits; Financial performance; Energy industry; Natural gas utilities

Location: United States--US

People: Trump, Donald J Woods, Darren Tillerson, Rex W

Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140

Publication title: Wall Street Journ al (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Apr 28, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1892729612

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1892729612?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Put a Kitten in Your Tank: Big Oil Gets Less Bold; Exxon Mobil and Chevron quarterly results show a shifting emphasis that will affect big oil's results in future commodity cycles

Author: Jakab, Spencer

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 Apr 2017: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

"Big Oil," the moniker attached to the giant, multinational energy companies, is slightly less apt than it was a year ago even as the industry's financial fortunes have improved.

Exxon Mobil Corp. and Chevron Corp. reported first-quarter earnings on Friday that, collectively, were $5.6 billion, or 416%, higher than a year earlier, driven by a big rise in crude prices. But they were both less oily and less international than in the past.

Crude output fell at both companies, reflecting a major retrenchment in capital expenditures and a greater reliance on natural gas. Overall hydrocarbon production was down for Exxon and roughly flat for Chevron, but both companies only saw growth domestically, largely from shale formations .

The change reflects a deliberate shift in strategy. While neither company has abandoned mammoth, technically challenging international projects, unconventional U.S. production is attracting more of their money even as overall spending has plunged.

The key attraction of doing this is the much lower exploration, political and financial risk since there are no dry holes, a capricious government won't nationalize fields and the investment spigot can be turned off if commodity prices tumble. The downside is that much smaller companies can do the same thing, often with less financial discipline .

For now the news is good for both Exxon and Chevron. They are finally generating enough cash to rebuild their weakened balance sheets and to perhaps resume their once-prodigious share buybacks. In the longer run, though, big oil's resemblance to small shale may mean skimpier returns across the next cycle.

Write to Spencer Jakab at spencer.jakab@wsj.com

Get financial insights and commentary on global investing from The Wall Street Journal's Heard on the Street team. Subscribe to the podcast.

Credit: By Spencer Jakab

Subject: Financial performance

Location: United States--US

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Apr 28, 2017

column: Heard on the Street

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1892791856

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1892791856?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Exxon, Chevron Earnings Point to Industry Recovery

Author: Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]29 Apr 2017: A.1.

ProQuest document link

Abstract:

Exxon Mobil Corp. on Friday reported its best quarter since 2015, more than doubling profit from the first three months of 2016 when crude prices fell to the lowest level in more than a decade.

Links: 360 Link to Full Text

Full text:  

The world's biggest oil companies are seeing their highest profits in more than a year, an early signal that they may be turning a corner on their long path to recovery.

Exxon Mobil Corp. on Friday reported its best quarter since 2015, more than doubling profit from the first three months of 2016 when crude prices fell to the lowest level in more than a decade. The company also generated enough cash to pay for new investments and dividends, an increasingly important measure of resilience for big oil companies, which have been piling on debt.

Chevron Corp., which reported a quarterly loss last year, posted a profit of $2.7 billion. The rosy results came a day after French energy company Total SA reported a 77% rise. Royal Dutch Shell PLC and BP PLC, which will report next week, are expected to show sharp increases.

For the big oil companies, the gains reflect a rally in oil prices from last year's lows, and revenue from new projects that have come online after years of multibillion-dollar investments in far-flung places including Angola, Qatar, Australia, Canada and Russia.

They also highlight severe belt tightening by companies that have been retooling strategies as they brace for a potentially extended period of challenging oil prices.

"These companies are cutting their cost structures," said Brian Youngberg, an energy analyst at Edward Jones. "They are leaner and have managed to get more out of each dollar they spend, and it is showing in their results."

Earnings growth for oil-and-gas companies could have hit double digits in the first quarter of 2017, said Joseph Tanious, senior investment strategist for Bessemer Trust. "When oil prices were dipping lower, that was having a drag on the overall results for the S&P 500," he said. "Now we're seeing the opposite of that."

In the U.S., companies also face the prospect of less burdensome regulations under President Donald Trump, who signed an executive order on Friday to ease restrictions on offshore drilling. That order is expected to have limited immediate impact, experts said, because current prices still make drilling in the Arctic Ocean and other affected areas economically unattractive.

Still, major oil companies face significant challenges as they attempt to repair the damage done by the worst price crash in a generation. Among the five largest Western energy giants, net debt more than tripled in the past five years to about $214 billion as they borrowed to make ends meet.

Balance-sheet woes were among the reasons many were downgraded by ratings firms. Exxon, for instance, lost its triple-A rating from S&P Global Ratings last year for the first time since the Great Depression.

Chevron sold assets to generate enough cash to pay for new spending and dividends, but new projects are likely to bring the company closer to Exxon's performance later in the year. As more money flows in, Chevron is likely to spend it reducing its debt ratio of about 24%, Chief Financial Officer Pat Yarrington said Friday.

"It's an OK place to be," she said. "Over time, I'd like to see us move a little lower in the debt profile."

Optimism from the relatively strong quarter has been tempered by growing concerns over whether a frenzied return to U.S. drilling will once again swamp markets.

As oil prices recovered in the past year to prices above $50 a barrel, U.S. oil companies returned to shale fields at a breakneck pace. The number of rigs operating has more than doubled from a year ago, according to RigData. U.S. production has risen to about 9.3 million barrels a day, just 3% shy of the 2015 peak, according to Rystad Energy.

The increase has been driven in part by lower costs that have improved drilling prospects in a number of fields, as well as positive sentiment stemming from a production cut from the Organization of the Petroleum Exporting Countries.

Still, some investors and market analysts are concerned the pace of the U.S. return to drilling has been too hot, raising the prospect that new shale production could bring so much new supply, prices will remain mired around $50 a barrel for years.

"Volumes are growing, particularly driven by North America," said Jeff Woodbury, Exxon's vice president of investor relations. That factor and others "indicate the need to be cautious going forward."

While a number of companies have managed to generate enough cash at that price to pay for new investment and dividends, executives have acknowledged it will be difficult for them to grow significantly unless oil prices rise further. The pipeline of new projects has dwindled significantly as the companies put the brakes on spending, a step that has the potential to limit growth opportunities within several years.

To make up the difference, Exxon and Chevron are turning for the most part to the Permian Basin in West Texas and New Mexico, an area of great promise in the industry that so far has generated little in the way of profits for many operators. Both companies have unveiled dramatic growth plans for the area.

Chevron said its U.S. production operations earned $80 million in the quarter. Exxon lost money for the ninth straight quarter in its U.S. drilling business, losing $18 million. That was an improvement from a loss of more than $800 million a year ago.

---

Anne Steele and Erin Ailworth contributed to this article.

Credit: By Bradley Olson

Subject: Investments; Crude oil prices; Natural gas utilities; Financial performance; Business conditions; Corporate profits; Petroleum industry; Industrywide conditions

Location: United States--US

People: Trump, Donald J

Company / organization: Name: BP PLC; NAICS: 447110, 324110, 211111; Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Total SA; NAICS: 447190, 324110, 211111; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.1

Publication year: 2017

Publication date: Apr 29, 2017

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

Document feature: Graphs

ProQuest document ID: 1892896366

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1892896366?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Big Oil Gets In Early on Argentina Shale; Shell, Exxon Mobil and others, who came late to the U.S. boom, are making a go at taking shale global

Author: Kent, Sarah; Turner, Taos

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]04 May 2017: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

NEUQUÉN, Argentina--Around 5,000 miles from the booming oil towns of West Texas, some of the world's biggest oil companies are trying to do what they failed to do with U.S. shale: Get in first and early.

Royal Dutch Shell PLC, Exxon Mobil Corp. and others are making another go at taking the shale industry global, starting with a grand experiment here in a desolate swath of western Argentina. This sprawling piece of Patagonia, known as Vaca Muerta, which means "dead cow," potentially has as much oil and gas as the biggest basins in Texas or North Dakota.

Replicating the U.S. fracking boom elsewhere has taken on fresh urgency in an era of stubbornly low and volatile oil prices. Outmaneuvered early on in the U.S. by smaller companies, Exxon, Shell, Chevron Corp. and others see Argentina as one of their best opportunities to expand shale, which generally features projects that can be ramped up or down with prices.

The Vaca Muerta has long been a focus of this sometimes quixotic quest, but a business-friendly government at all levels that is actively working to encourage drilling is fueling optimism that shale development in the region could finally begin to take off.

Hurdles still remain and costs in Argentina are significantly higher than the U.S. But this time around, the big-oil company executives are determined not to miss out, hoping to leverage their big balance sheets and experience with foreign governments to make international shale work.

And they want to prove wrong critics who say they can't drill shale as well as specialists in the U.S.

"Our position is: Hell no! We will show that we can drill and complete wells better than the best," said Andrew Brown, Shell's head of exploration and production. "We're showing it in Argentina."

This year, Exxon is expected to move from experimental pilot to proper development in the region, taking a step toward investments that former Chief Executive Rex Tillerson last year said could exceed $10 billion in the coming decades.

France's Total SA--which has repeatedly said that expanding its foothold in U.S. shale is too expensive--is also planning to ratchet up production in the Vaca Muerta. Chevron has made investments of over $1 billion in Argentine shale projects and BP PLC is in the country through its joint venture Pan American Energy.

Last month, Shell started up a new treatment plant on the Vaca Muerta's dusty plains with the capacity to process 10,000 barrels a day of shale oil and six million cubic feet of gas daily. On a recent windswept afternoon, a Shell oilman stood atop a 560-ton rig, hauled over from the Permian plains where it had recently been in use.

Sporting a red fire-safety suit and protective yellow gloves, he pointed to a series of computer screens that spewed out data on the rig's effort to push thousands of feet of steel casing deep into the earth below.

Senior drilling engineer Wouter Miedema, who has worked in shale projects in the U.S. and Canada, said he was struck by the similarities between the geology of the Vaca Muerta and the most productive shale fields of North America. "It's amazing to think that on the other end of the planet you've got shale like this," he said.

The expanse of iron-toned dirt into which he was drilling is thought to hold 27 billion barrels of technically recoverable oil and 802 trillion cubic feet of gas embedded in a layer of shale that is up to 1,700 feet thick, according to the U.S. Energy Information Administration. That ranks its geology up there with some of the best fields in the U.S., executives and analysts say.

For now, Shell is investing under $200 million a year to see if it can make shale work in Argentina. It isn't enough to reach a level comparable with U.S. shale, though Shell executives say the region could be a big producer.

Major companies like Shell were late to get in to shale production in the U.S. When they did venture in, they found the process to be different than the engineering feats that characterized other oil exploration and output.

Still, companies want to take it slow in Argentina, because they have been burned in the past. Their previous wildcatting attempts in shale from Europe to Russia and China have been stymied by a variable cocktail of poor drilling results, political opposition, regulatory hurdles and the dramatic drop in oil prices that began in 2014.

Argentina's shale is no sure thing. Companies have to spend more time and money figuring out the best places to drill in Argentina, where the Vaca Muerta is still relatively unexplored territory compared with the U.S. shale patch. On cost, infrastructure and manpower, it can't yet compete with the U.S.

According to Shell, steel casing here costs 40% more than it does in Texas, even though it is made in Argentina. Casing accounts for up to 25% of well costs, so that price difference makes drilling here much more expensive, Shell says. In March, Exxon told analysts that it currently costs two to three times more to drill a well in the Vaca Muerta than it does in the U.S.

Recent progress on costs has infused oil companies with hope about the Vaca Muerta, including agreements with local unions and a government pledge to keep natural-gas prices high.

Shell's local well costs, including drilling and completion, have plummeted from about $35 million for their first well in 2012 to under $10 million now. In February, the company drilled a five-kilometer horizontal well for roughly $5 million. The company said it was the cheapest of its kind ever tapped in Argentina.

"This will take off," Shell CEO Ben van Beurden said. "It's just a matter of lining everything up."

Write to Sarah Kent at sarah.kent@wsj.com and Taos Turner at taos.turner@wsj.com

Related

* Gas Pangs Pressure Crude

* Growth Concerns Put Dent in Metals

Credit: By Sarah Kent and Taos Turner

Subject: Prices; Costs; Drilling; Natural gas

Location: North Dakota United States--US Argentina France West Texas

People: Tillerson, Rex W

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Total SA; NAICS: 211111, 324110, 447190; Name: BP PLC; NAICS: 211111, 324110, 447110; Name: Chevron Corp; NAICS: 211111, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: May 4, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1894840725

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1894840725?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Big Oil Jumps on Argentina Shale --- Shell, Exxon and others that were late to U.S. boom grab at new opportunities

Author: Kent, Sarah; Turner, Taos

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]05 May 2017: B.1.

ProQuest document link

Abstract:

The expanse of iron-toned dirt into which he was drilling is thought to hold 27 billion barrels of technically recoverable oil and 802 trillion cubic feet of gas embedded in a layer of shale that is up to 1,700 feet thick, according to the U.S. Energy Information Administration.

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NEUQUEN, Argentina -- Around 5,000 miles from the booming oil towns of West Texas, some of the world's biggest oil companies are trying to do what they failed to do with U.S. shale: Get in first and early.

Royal Dutch Shell PLC, Exxon Mobil Corp. and others are making another go at taking the shale industry global, starting with a grand experiment here in a desolate swath of western Argentina. This sprawling piece of Patagonia, known as Vaca Muerta, which means "dead cow," potentially has as much oil and gas as the biggest basins in Texas or North Dakota.

Replicating the U.S. fracking boom elsewhere has taken on fresh urgency in an era of stubbornly low and volatile oil prices. Outmaneuvered early on in the U.S. by smaller companies, Exxon, Shell, Chevron Corp. and others see Argentina as one of their best opportunities to expand shale, which generally features projects that can be ramped up or down with prices.

The Vaca Muerta has long been a focus of this sometimes quixotic quest, but a business-friendly government at all levels that is actively working to encourage drilling is fueling optimism that shale development in the region could finally begin to take off.

Hurdles still remain and costs in Argentina are significantly higher than the U.S. But this time around, the big-oil company executives are determined not to miss out, hoping to leverage their big balance sheets and experience with foreign governments to make international shale work.

And they want to prove wrong critics who say they can't drill shale as well as specialists in the U.S.

"Our position is: Hell no! We will show that we can drill and complete wells better than the best," said Andrew Brown, Shell's head of exploration and production. "We're showing it in Argentina."

This year, Exxon is expected to move from experimental pilot to proper development in the region, taking a step toward investments that former Chief Executive Rex Tillerson last year said could exceed $10 billion in the coming decades.

France's Total SA -- which has repeatedly said that expanding its foothold in U.S. shale is too expensive -- is also planning to ratchet up production in the Vaca Muerta. Chevron has made investments of over $1 billion in Argentine shale projects and BP PLC is in the country through its joint venture Pan American Energy.

Last month, Shell started up a new treatment plant on the Vaca Muerta's dusty plains with the capacity to process 10,000 barrels a day of shale oil and six million cubic feet of gas daily. On a recent windswept afternoon, a Shell oilman stood atop a 560-ton rig, hauled over from the Permian plains where it had recently been in use.

Sporting a red fire-safety suit and protective yellow gloves, he pointed to a series of computer screens that spewed out data on the rig's effort to push thousands of feet of steel casing deep into the earth below.

Senior drilling engineer Wouter Miedema, who has worked in shale projects in the U.S. and Canada, said he was struck by the similarities between the geology of the Vaca Muerta and the most productive shale fields of North America. "It's amazing to think that on the other end of the planet you've got shale like this," he said. The expanse of iron-toned dirt into which he was drilling is thought to hold 27 billion barrels of technically recoverable oil and 802 trillion cubic feet of gas embedded in a layer of shale that is up to 1,700 feet thick, according to the U.S. Energy Information Administration. That ranks its geology up there with some of the best fields in the U.S., executives and analysts say.

For now, Shell is investing under $200 million a year to see if it can make shale work in Argentina. It isn't enough to reach a level comparable with U.S. shale, though Shell executives say the region could be a big producer.

Major companies like Shell were late to get in to shale production in the U.S. When they did venture in, they found the process to be different than the engineering feats that characterized other oil exploration and output.

Still, companies want to take it slow in Argentina, because they have been burned in the past. Their previous wildcatting attempts in shale from Europe to Russia and China have been stymied by a variable cocktail of poor drilling results, political opposition, regulatory hurdles and the dramatic drop in oil prices that began in 2014.

Argentina's shale is no sure thing. Companies have to spend more time and money figuring out the best places to drill in Argentina, where the Vaca Muerta is still relatively unexplored territory compared with the U.S. shale patch. On cost, infrastructure and manpower, it can't yet compete with the U.S.

Credit: By Sarah Kent and Taos Turner

Subject: Drilling; Oil shale

Location: United States--US Argentina

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 324110, 213112, 221210; Name: Exxon Mobil Corp; NAICS: 447110, 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2017

Publication date: May 5, 2017

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1895139021

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1895139021?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Exxon Mobil to Enter Mexican Gas-Station Market; Exxon Mobil said its first Mobil-brand station will be located in central Mexico later this year

Author: Harrup, Anthony

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 May 2017: n/a.

ProQuest document link

Abstract: None available.

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MEXICO CITY--Exxon Mobil Corp. plans to open its first Mexican service station in the second half of the year, joining the likes of BP PLC in the country's newly opened motor-fuels market.

Exxon Mobil said Wednesday that its first Mobil-brand station will be located in central Mexico, and that others will follow this year. The company plans to invest $300 million over the next decade in fuels logistics, product inventories and marketing.

"Recent energy reforms present a unique opportunity to help meet the growing demand for reliable fuel supplies and quality service in Mexico," the Irving, Texas, company said in a release.

Exxon Mobil is the latest oil major to take the plunge into Mexico's 800,000 barrel-a-day gasoline market, which was opened to foreign investment last year. BP launched its first service station in March and expects to have 1,500 in operation after five years.

Until last year, Mexico's gas stations were all franchises of state-oil company Petróleos Mexicanos, which was also the only gasoline and diesel supplier. Under the 2013 overhaul of the country's energy laws, the market is undergoing a makeover.

Companies other than Pemex are allowed to import and distribute fuels, and Pemex is no longer the only brand of service station.

Local brands such as Oxxo Gas, a chain owned by beverages and retail conglomerate Femsa, are vying for a slice of the market. Regulators recently approved the first gasoline "buyers club" among existing franchisees who find themselves competing on price for the first time.

Retail gasoline and diesel prices are being freed from government control, a process that began in March in some northern border areas and is expected to be completed nationwide by the end of the year.

With only one service station for every 3,000 vehicles, compared with one for every 1,650 in the U.S. and 2,220 in Canada, according to energy officials, Mexico has plenty of room for expansion. Poor quality of service, including pumps that deliver less fuel than they charge for, has been a problem at many stations , and competition is expected to help resolve that.

Exxon Mobil said it plans to use its traveling laboratories to make periodic visits to its stations to analyze fuel quality and make sure pumps work properly and safely.

Exxon Mobil has chemicals and lubricants businesses in Mexico, and last year won a contract to develop reserves in the Gulf of Mexico in a consortium with France's Total SA in the Mexican government's first auction of deep-water areas.

Write to Anthony Harrup at anthony.harrup@wsj.com

Read More

* Mexican Oil Auction Offers First Major Test of Foreign Firms' Interest

* Mexico Unleashes Gas Stations From Pemex

* Mexicans Protest Against Higher Gasoline Prices

Credit: By Anthony Harrup

Subject: Service stations; Quality; Gasoline prices

Location: Texas United States--US Canada France

Company / organization: Name: Petroleos Mexicanos; NAICS: 211111; Name: Total SA; NAICS: 211111, 324110, 447190; Name: BP PLC; NAICS: 211111, 324110, 447110; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: May 17, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1899472404

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1899472404?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

China Seeks More Private Money for Its Massive State-Owned Energy Companies; Job cuts may follow: PetroChina employs about seven times as many people as Exxon, despite similar revenue in 2016

Author: Spegele, Brian

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 May 2017: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

BEIJING--Seeking to build national champions to rival the likes of Exxon Mobil Corp., China is moving to boost private investment in its vast oil companies--and may be willing to slash their workforces in the process.

China's oil and gas sector has been struggling under a combination of low energy prices and a weaker economy, sapping the sales and profit of its state-owned energy giants.

A new policy road map, unveiled late Sunday and backed by the Communist Party's Central Committee and the government's cabinet, indicated leaders are considering more aggressive action to make state-owned companies operate more like global peers.

Market forces "should play a decisive role in resource allocation," the official Xinhua News Agency quoted the reform plan as saying.

The government offered eight general targets, including better managing oil imports and exports, upgrading refineries and boosting reserves. Details are expected in the coming months, said Lin Boqiang, who researches energy policy at Xiamen University in southeast Fujian province.

According to Xinhua's account, the newly released plan pledges to solve "problems left over from history" and allow state-owned oil-and-gas companies "to lose weight and be fit"-- suggesting job reductions, Mr. Lin said.

Cutting oil-sector jobs, whether through layoffs, restructuring or attrition, would mark a change for China's government, which has hesitated to do that for fear of social instability.

PetroChina Co., the listed arm of China National Petroleum Corp., employs around 500,000 people--about seven times as many as Exxon, despite reporting similar revenue in 2016.

"It's the first time they talked about allowing the oil companies to really cut their force," Mr. Lin said of the government's plan.

The oil sector was an early target of an anticorruption drive led by President Xi Jinping , which significantly reduced the political clout of state oil giants such as PetroChina Co. and China Petroleum and Chemical Corp. It diminished their ability to resist opening the industry to more competition.

Changes since Mr. Xi took over include allowing privately owned refiners to import crude oil directly, a break with the past that brought them into tighter competition with state-owned companies. That shift has rippled world-wide as foreign oil suppliers and trading houses from Russia to Europe lined up to do business with the new customers .

Under the newly released plan, the government also said it is committed to carrying out more "mixed-ownership reform" sectorwide. The government has been experimenting for several years with letting more outside investors take minority stakes in parts of state-owned industry. In one early example, China Petroleum and Chemical, known as Sinopec, sold off a nearly 30% stake in its gas-stations unit in 2014.

Yet the private stakes have generally been small, and Gordon Kwan, an oil and gas analyst at Nomura Holdings Inc., says it is too early to know whether the openings are enough to achieve the goal of boosting efficiency in the sector. Nevertheless, he said the plan sent a positive signal to investors about the government's intent.

"We can only evaluate this 10 years from now," he said. "It's not going to be an overnight success."

Write to Brian Spegele at brian.spegele@wsj.com

Credit: By Brian Spegele

Subject: Natural gas utilities; Energy industry

Location: China

People: Xi Jinping

Company / organization: Name: CNOOC Ltd; NAICS: 211111; Name: Xinhua News Agency; NAICS: 519110; Name: Xiamen University; NAICS: 611310; Name: China Petrochemical Corp; NAICS: 324110; Name: China National Petroleum Corp; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: May 22, 2017

Section: World

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1900652852

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1900652852?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

BlackRock, Vanguard Mull Pressuring Exxon to Disclose Climate Risks; Shareholder proposal would push oil company for a climate 'stress test' gauging impact of green tech on its assets

Author: Olson, Bradley; Krouse, Sarah; Kent, Sarah

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 May 2017: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

Two of the world's largest asset managers are strongly considering a public rebuke to Exxon Mobil Corp. over climate change at the company's annual meeting next week, according to people familiar with the matter.

BlackRock Inc. and Vanguard Group are weighing a vote in favor of an investor proposal that would seek to pressure the oil giant to conduct a climate "stress test" to measure how regulations to reduce greenhouse gases and new energy technologies could impact the value of its oil assets, the people said.

Exxon has urged investors to vote against the resolution.

If the proposal passes at Exxon's annual meeting May 31, experts say it would be the strongest signal to date that investors are seeking greater disclosure of the threats that climate change could pose to businesses. Passage would also highlight the emerging power of money managers with large passive investing businesses--and their willingness to wield it.

Five years ago, many investors weren't as attuned to how climate change could affect the value of assets, but "now the evidence just slaps you in the face," said Timothy Smith, a director at Walden Asset Management, which has pressured money managers on climate issues and is backing the Exxon measure.

BlackRock is still considering whether to support the proposal.

"No decision has been made regarding our vote at Exxon's Annual Shareholder Meeting. Our deliberations continue and we look forward to continued engagement with the company," Zach Oleksiuk, head of Americas for BlackRock's investment stewardship group, said in a statement.

Vanguard is also strongly considering a vote for the proposal, the people said. The asset managers could side with the company if Exxon offers certain concessions, including making further disclosures or agreeing to allow its nonemployee directors to meet with investors, the people said. Such concessions in the past have led BlackRock to side with companies and vote against proposals related to climate change disclosure.

"Directors at any company who don't engage with those on whose behalf they serve risk losing investor support," Glenn Booraem, a principal at Vanguard who works on its governance efforts, said in a statement.

While the votes are nonbinding, companies need to show their responsiveness to such measures or face potential backlash, including the prospect of institutional investors voting against their director candidates.

Exxon in recent years has stepped up its climate-related disclosures and voiced support for a carbon tax and the international Paris climate pact. But it has also come under investigation by the New York attorney general and the U.S. Securities and Exchange Commission, who are examining whether it has provided enough information to investors about climate impacts and the value of its assets.

The company's disclosures to date have concluded that its assets wouldn't be severely affected by climate change.

"Our view and those of all other credible forecasters show a continued role for oil and gas through 2040," said Exxon spokesman Alan Jeffers.

Investment products such as exchange-traded funds that track the performance of indexes often come at a lower cost than traditional mutual funds and have gathered assets at a clip in recent years. That growth has given firms like BlackRock and Vanguard increasing sway on shareholder votes. But the firms in turn have come under activist pressure to take stances on issues such as climate disclosure.

When BlackRock sided with Exxon and against a similar proposal at the company's annual meeting a year ago, it faced backlash from investors and environmental activists. This year BlackRock said the disclosure of climate risks would be among its key engagement priorities with senior executives.

About two weeks ago, the firm voted for a similar proposal at the annual meeting of Occidental Petroleum Corp. Vanguard also voted in favor of that proposal, a person familiar with the vote said.

Following this month's Occidental vote, Exxon stepped up its outreach to large shareholders, making executives available for extensive discussions, investors said.

"Exxon has been very, very active in lobbying over the past year," said Patrick Doherty, director of corporate governance at the office of the New York state comptroller, which manages the state's pension fund and led the investor coalition that put forward the climate shareholder proposal at Exxon.

Exxon has consistently said for years that it believes demand for oil and gas will rise in coming decades as people in emerging economies move into the middle class and drive cars or use air conditioning. Chevron Corp., the second-largest U.S. oil company, has made similar statements.

But the issue has grown into a hotly debated topic in the industry, with some European oil companies acknowledging the potential for demand to peak by the end of the next decade.

In December, a task force commissioned by the Group of 20 richest nations, and representing major asset managers, laid out new guidelines for how companies should be more forthcoming about climate risks. BlackRock played a role in creating the recommendations.

The Exxon vote appears to be shaping up as a litmus test for sustainability, governance experts said.

"At the end of the day the outcome will turn on what do the big fund managers and mutual funds do," said Anne Simpson, investment director for sustainability at the California Public Employees' Retirement System, a backer of the proposal. "The question there is, are they going to step up?"

Write to Bradley Olson at Bradley.Olson@wsj.com , Sarah Krouse at sarah.krouse@wsj.com and Sarah Kent at sarah.kent@wsj.com

Credit: By Bradley Olson, Sarah Krouse and Sarah Kent

Subject: Shareholder voting; Corporate governance; Climate change; Investment advisors

Location: New York

Company / organization: Name: Walden Asset Management; NAICS: 523120; Name: Public Employees Retirement System-California; NAICS: 525110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: May 25, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1902075896

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1902075896?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Business News: Big Investors Weigh Rebuking Exxon on Climate

Author: Olson, Bradley; Krouse, Sarah; Kent, Sarah

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]26 May 2017: B.5.

ProQuest document link

Abstract:

BlackRock Inc. and Vanguard Group are weighing a vote in favor of an investor proposal that would seek to pressure the oil giant to conduct a climate "stress test" to measure how regulations to reduce greenhouse gases and new energy technologies could affect the value of its oil assets, the people said.

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Full text:  

Two of the world's largest asset managers are considering a public rebuke to Exxon Mobil Corp. over climate change at the company's annual meeting next week, according to people familiar with the matter.

BlackRock Inc. and Vanguard Group are weighing a vote in favor of an investor proposal that would seek to pressure the oil giant to conduct a climate "stress test" to measure how regulations to reduce greenhouse gases and new energy technologies could affect the value of its oil assets, the people said.

Exxon has urged investors to vote against the resolution.

If the proposal passes at Exxon's annual meeting Wednesday, experts say it would be the strongest signal to date that investors are seeking greater disclosure of the threats that climate change could pose to businesses.

Passage also would highlight the emerging power of money managers with large passive investing businesses -- and their willingness to wield it.

Five years ago, many investors weren't as attuned to how climate change could affect the value of assets, but "now the evidence just slaps you in the face," said Timothy Smith, a director at Walden Asset Management, which has pressured money managers on climate issues and is backing the Exxon measure.

BlackRock is still considering whether to support the proposal.

"No decision has been made regarding our vote at Exxon's Annual Shareholder Meeting. Our deliberations continue and we look forward to continued engagement with the company," Zach Oleksiuk, head of Americas for BlackRock's investment stewardship group, said in a statement.

Vanguard also is strongly considering a vote for the proposal, the people said.

The asset managers could side with the company if Exxon offers certain concessions, including making further disclosures or agreeing to allow its nonemployee directors to meet with investors, the people said.

Such concessions in the past have led BlackRock to side with companies and vote against proposals related to climate-change disclosure.

Credit: By Bradley Olson, Sarah Krouse and Sarah Kent

Subject: Investment advisors; Shareholder meetings; Climate change

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: BlackRock Inc; NAICS: 523930, 525910; Name: Vanguard Group Inc; NAICS: 523930, 525910

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.5

Publication year: 2017

Publication date: May 26, 2017

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1902386480

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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Exxon Shareholders Pressure Company on Climate Risks; Proposal at annual meeting calls for Exxon to share more information on climate policy vulnerabilities as Trump administration weighs pulling out of Paris accord

Author: Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]31 May 2017: n/a.

ProQuest document link

Abstract: None available.

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Full text:

DALLAS--Exxon Mobil Corp. shareholders delivered a major rebuke to the oil giant Wednesday, calling for the company to share more information about how climate change and regulations could impact its operations.

The climate proposal won the support of 62% of shareholders who cast ballots at Exxon's annual meeting, a powerful symbol that big investors see climate change as a major risk that warrants greater transparency from oil and gas companies.

Vanguard Group and BlackRock Inc., Exxon's two largest shareholders, supported the measure, people familiar with the votes said. The proposal pushes Exxon to conduct a climate "stress test" to measure how regulations to reduce greenhouse gases and new energy technologies could impact the value of its oil assets.

The Exxon vote came amid reports that President Donald Trump was leaning toward pulling out of the 2015 Paris accord to restrict carbon emissions and hold back rising temperature. The president said on Twitter Wednesday morning he would make his determination "over the next few days."

Exxon has stepped up its climate disclosures in recent years, stated its commitment to the Paris climate agreement, named an environmental expert to its board and worked to reduce emissions in its operations.

The company, which recommended shareholders vote against the proposal, met with about 25% of its shareholders prior to the meeting to discuss their concerns, which included climate vulnerabilities.

"We're confident in the commercial viability of our portfolio," Exxon Chairman and Chief Executive Darren Woods said Wednesday.

Mr. Woods said the company would "step back and reflect on the vote" and how it could better express its position. The board would also continue to discuss the question of allowing investor meetings with non-employee directors, he said.

"This is a turning point," said Anne Simpson, the investment director for sustainability at the California Public Employees' Retirement System, the nation's largest pension fund, which supported the proposal. The vote "demonstrates that investors are seeking strong reporting and scenario analysis to better understand the risks and opportunities of climate change."

At the annual meeting, an estimated 68% of investors also voted for the company's pay practices, a decline from about 90% in previous years. Proxy-advisory firm Institutional Shareholder Services said the company's goals and targets are not specific enough and grants to executives lack performance criteria. The vote tallies were preliminary.

Both votes are nonbinding, but they reflect frustration among the company's major investors over the Exxon policy that doesn't allow shareholders to meet with non-employee directors. Shareholders can communicate with board members by emailing them through the company's Web site. Last year, BlackRock withheld its support for two Exxon directors over the matter.

Such meetings were central to discussions over the past year between Chevron Corp., the second-largest U.S. oil company, and certain investors over executive pay and climate-change issues. Chevron revised its pay practices in response and produced a report on climate-change impacts, prompting shareholders backing a resolution similar to Exxon's to withdraw it in advance of the company's annual meeting.

In 2014, Exxon produced a climate-related report saying that none of its assets were at risk of being stranded, or left untapped, due to climate change. The company has consistently said that energy demand will rise through 2040 as people around the world, particularly in emerging nations, join the middle class.

Many oil and gas companies have come up with climate disclosures that reach conclusions similar to Exxon. Activists and disclosure advocates have said the fact that many companies are reaching the same conclusion - that they are well-positioned to withstand climate impacts and regulations - points to flaws in their analyses.

"Investor sentiment can change a lot more quickly than the trajectory for global oil demand," said Jim Krane, an energy fellow at Rice University's Baker Institute in Houston. "For a public company beholden to fossil fuels, that might be where the biggest risk lies."

Sarah Krouse contributed to this article.

Write to Bradley Olson at Bradley.Olson@wsj.com

Credit: By Bradley Olson

Subject: Shareholder voting; Stockholders; Environmental policy; Natural gas utilities; Climate change

Location: California

People: Trump, Donald J Woods, Darren Simpson, Anne

Company / organization: Name: BlackRock Inc; NAICS: 523930, 525910; Name: Public Employees Retirement System-California; NAICS: 525110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: May 31, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1904144467

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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Business News: Investors to Exxon: Heed Climate --- Shareholder vote backs 'stress test' of oil assets amid tough environmental rules

Author: Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]01 June 2017: B.3.

ProQuest document link

Abstract:

The climate proposal won the support of 62% of shareholders who cast ballots at Exxon's annual meeting, evidence that investors see climate change as a major risk that warrants greater transparency from oil-and-gas companies.

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DALLAS -- Exxon Mobil Corp. shareholders delivered a significant rebuke to the oil giant Wednesday, calling for the company to share more information about how climate change and regulations could affect its operations.

The climate proposal won the support of 62% of shareholders who cast ballots at Exxon's annual meeting, evidence that investors see climate change as a major risk that warrants greater transparency from oil-and-gas companies.

Vanguard Group and BlackRock Inc., Exxon's two largest shareholders, supported the measure, people familiar with the votes said. The proposal pushes Exxon to conduct a climate "stress test" to measure how regulations to reduce greenhouse gases and new energy technologies could impact the value of its oil assets.

The Exxon vote came amid reports that President Donald Trump was leaning toward pulling out of the 2015 Paris accord to restrict carbon emissions and counter rising temperature. The president said on Twitter Wednesday morning that he would make his determination "over the next few days."

Exxon has stepped up its climate disclosures in recent years, stated its commitment to the Paris climate pact, named an environmental expert to its board and worked to cut emissions in its operations.

The company, which recommended shareholders vote against the proposal, met with about 25% of its shareholders prior to the meeting to discuss their concerns, which included climate vulnerabilities.

"We're confident in the commercial viability of our portfolio," Exxon Chairman and Chief Executive Darren Woods said Wednesday. Mr. Woods said the company would "step back and reflect on the vote" and how it could better express its position.

"This is a turning point," said Anne Simpson, the investment director for sustainability at the California Public Employees' Retirement System, the nation's largest pension fund, which supported the proposal. She said the vote "demonstrates that investors are seeking strong reporting and scenario analysis to better understand the risks and opportunities of climate change."

In 2014, Exxon produced a climate-related report saying that none of its assets were at risk of being stranded or left untapped due to climate change. The company has consistently said that energy demand will rise through 2040 as people around the world, particularly in emerging nations, join the middle class.

At the annual meeting, an estimated 68% of investors voted for the company's pay practices, a decline from about 90% in previous years. Proxy-advisory firm Institutional Shareholder Services said the company's goals aren't specific enough and grants to executives lack performance criteria.

Both votes on Wednesday are nonbinding, and the tallies are preliminary.

---

Sarah Krouse contributed to this article.

Credit: By Bradley Olson

Subject: Shareholder voting; Natural gas utilities; Climate change

People: Woods, Darren

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2017

Publication date: Jun 1, 2017

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1904048260

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1904048260?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

New York Attorney General Alleges Exxon Misled Investors on Climate; State prosecutor claims Exxon used internal climate risk figures that differed from public statements

Author: Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 June 2017: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

New York's attorney general alleged in court papers Friday that Exxon Mobil Corp. may have misled investors about how it accounts for the impact of climate change on its operations by using internal estimates that differed from its public statements.

Disclosing for the first time some of the specific evidence his office has collected in its long-running probe of the oil giant, New York Attorney General Eric Schneiderman claimed he found documents and other information showing that Exxon's process for estimating the potential future costs of greenhouse gas regulations on its business "may be a sham."

He made the claims in a filing in New York state court seeking to compel Exxon to release additional documents and produce witnesses for the probe, which began in 2015. The U.S. Securities and Exchange Commission is also examining Exxon's accounting practices and climate change disclosures.

Legal wrangling in the case has also played out in federal court, where Exxon has alleged that the investigation by Mr. Schneiderman, a Democrat, is politically motivated and driven by company antagonists. Mr. Schneiderman has denied such accusations.

An Exxon spokesman called the allegations "inaccurate and irresponsible" and said the company would respond in future court filings.

Exxon's "external statements have accurately described its use of a proxy cost of carbon, and the documents produced to the attorney general make this fact unmistakably clear," spokesman Scott Silvestri said in a statement.

The company, which has submitted nearly 3 million pages of documents in the case, has strongly defended its disclosures and said its accounting practices are legal.

The airing of certain specific evidence in the probe comes a day after President Donald Trump said he plans to withdraw from the Paris climate accord, a 2015 agreement by more than 190 nations to reduce global carbon dioxide emissions.

In the past year, Exxon has repeatedly voiced its support for the climate agreement, advocated for a carbon tax, added an environmental expert to its board and begun testing technology to reduce emissions at power plants.

On Wednesday, the company suffered a public rebuke on climate when 62% of votes cast by its shareholders backed a resolution to pressure the company to share more information about how climate change and regulations could affect its business.

At the center of the claims the New York state prosecutor made Friday is one of Exxon's central assurances to investors on climate change risk: that since 2007, the company has included a "proxy cost of carbon" in its assessment of the viability of its oil and gas projects.

That is an estimate of how much governments around the world may charge Exxon or other companies or consumers for the carbon dioxide they emit, through a carbon tax or other emissions fees.

Such assessments can have a material impact on how an energy company values its assets. With a higher estimated cost of carbon, certain projects could become unprofitable, potentially requiring an accounting write down or recognition of losses on a company's books.

Mr. Schneiderman alleges that from 2010 to 2014, documents indicate the company used "secret, internal figures" that understated potential future costs from climate regulations, even while suggesting publicly that it used higher estimates.

The company said in a 2014 report that it applied a cost of $60 per ton of greenhouse gas emissions in 2030 to its projects in developed countries. The state prosecutor filed documents with the court Friday that appeared to show it actually used a price of $40 a ton internally.

In 2010, an Exxon employee identified as a corporate greenhouse gas manager said in an email that the $60 a ton figure used for Exxon's annual Energy Outlook was "more realistic," according to documents released with the filing.

Another email in 2011 suggests that former Chairman and Chief Executive Rex Tillerson, now the U.S. Secretary of State, was aware of the discrepancy between internal and external figures. In part, Exxon was seeking to be "conservative" in its internal estimates, according to the documents.

A State Department spokeswoman said questions about the probe should be directed to Exxon.

The company ended the practice of using different internal and external carbon cost estimates in 2014, the filing claims. Still, documents produced in the investigation don't show that the company has a consistent process for coming up with such estimates, according to the filing.

"Exxon may still be in the midst of perpetrating an ongoing fraudulent scheme on investors and the public," Mr. Schneiderman wrote. He has broad powers to investigate allegations of corporate fraud and alleged wrongdoing under New York law.

The state accuses Exxon of failing to provide documents associated with an alias email account previously used by Mr. Tillerson under the name "Wayne Tracker." In addition, it adds a new allegation: that current Exxon Chief Executive Darren Woods also had such an account, under the name "J.E. Gray."

Exxon has said in filings that it has complied with court orders and objects to overly broad requests for information.

The documents appear to include a rationale for Exxon's use of a different internal estimate for potential carbon costs: the sale of carbon credits. Exxon is involved in a number of projects in which carbon dioxide is captured and stored. Under some regulatory schemes, such operations can generate revenue if the party storing carbon can sell credits to other emitters.

Exxon this year wrote down the value of certain U.S. natural gas assets and removed more than 4 billion barrels of crude, mostly in Canada's oil sands, from its reserves total due to low prices.

The company has said its process of accounting for potential future climate costs helps ensure it will be prepared in the event that regulation or new technology slows demand for oil.

"Whatever environment we find ourselves in, we will be competitively advantaged," Mr. Woods reiterated at the company's annual meeting Wednesday.

Write to Bradley Olson at Bradley.Olson@wsj.com

Credit: By Bradley Olson

Subject: Stockholders; Greenhouse gases; Emissions; Carbon dioxide; Environmental tax; Shareholder meetings; Cost estimates; Accounting procedures; Industrial plant emissions; Climate change; Natural gas

Location: New York United States--US Canada

People: Trump, Donald J

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Jun 2, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1904787407

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1904787407?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Exxon's Accounting Draws Fire

Author: Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]03 June 2017: B.2.

ProQuest document link

Abstract:

Disclosing for the first time some of the specific evidence his office has collected in its long-running probe of the oil giant, New York Attorney General Eric Schneiderman claimed that he found documents and other information showing that Exxon's process for estimating future costs of greenhouse-gas regulations on its business "may be a sham."

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New York's attorney general alleged Friday that Exxon Mobil Corp. may have misled investors about how it accounts for the impact of climate-change regulations on its operations by using internal estimates that differed from its public statements.

Disclosing for the first time some of the specific evidence his office has collected in its long-running probe of the oil giant, New York Attorney General Eric Schneiderman claimed that he found documents and other information showing that Exxon's process for estimating future costs of greenhouse-gas regulations on its business "may be a sham."

He made the claims in a filing in New York state court seeking to compel Exxon to release additional documents and produce witnesses for the probe, which began in 2015. The U.S. Securities and Exchange Commission is also examining Exxon's accounting practices and climate-change disclosures.

An Exxon spokesman called the allegations "inaccurate and irresponsible" and said the company would respond in future court filings. Exxon's "external statements have accurately described its use of a proxy cost of carbon, and the documents produced to the attorney general make this fact unmistakably clear," spokesman Scott Silvestri said.

The company has said its accounting practices are legal. In the past year, Exxon also has repeatedly voiced its support for the Paris climate accord and backed a carbon tax.

At the center of the claims the New York state prosecutor made Friday is one of Exxon's central assurances to investors on climate-change risk: that since 2007, the company has included a "proxy cost of carbon" in its assessment of the viability of its oil and gas projects. That is an estimate of how much governments around the world might charge Exxon or other companies for the carbon dioxide they emit, through a carbon tax or other emissions fees.

Such assessments can have a material impact on how an energy company values its assets. With a higher estimated cost of carbon, certain projects could become unprofitable, potentially requiring an accounting write-down or recognition of losses on a company's books. But Mr. Schneiderman alleges that from 2010 to 2014, documents indicate the company used "secret, internal figures" that understated potential future costs from climate regulations, even while suggesting publicly that it used higher estimates.

The company said in a 2014 report that it applied a cost of $60 per ton of greenhouse-gas emissions in 2030 to its projects in developed countries. The state prosecutor filed documents Friday that appeared to show it actually used a price of $40 a ton internally. In 2010, an Exxon employee identified as a corporate greenhouse-gas manager said in an email that the $60 a ton figure used for Exxon's annual Energy Outlook was "more realistic," according to documents released with the filing.

Credit: By Bradley Olson

Subject: Attorneys general; Climate change

Location: New York

People: Schneiderman, Eric

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.2

Publication year: 2017

Publication date: Jun 3, 2017

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1905117910

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1905117910?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Exxon Rebuts Allegations it Misled Investors on Climate; N.Y. attorney general claims company deceived investors on climate risks

Author: Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 June 2017: n/a.

ProQuest document link

Abstract: None available.

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Exxon Mobil Corp. pushed back on Friday against accusations that it misled investors on how it accounts for climate-change risks, saying in a legal filing that the claims by New York's attorney general are "inflammatory, reckless and false."

The oil giant was responding to a motion filed by New York Attorney General Eric Schneiderman in state court last week that seeks to force Exxon to turn over reams of additional documents to aid the state's ongoing probe of the company. As part of that motion, Mr. Schneiderman said he had found evidence suggesting that the way Exxon evaluates the impact of future climate regulations on its business was a "sham."

Mr. Schneiderman claimed Exxon has used two sets of estimates for potential future carbon prices--a public number given to investors, and another internal figure used privately for decision-making. That could mislead investors by making Exxon seem more resilient to potential climate risks than it really is, he argued.

In its response Friday, Exxon acknowledged that it has used varying carbon price figures in the past, but said the numbers were used for different purposes. One process, the one used in an oil outlook shared publicly, involved estimates of potential future carbon costs to assess energy demand and future prices, while another, the one used internally, related to gauging the profitability of specific oil and gas projects.

"ExxonMobil's use of different metrics, in different circumstances, to accomplish different goals evinces prudent financial stewardship, applying appropriate assumptions in appropriate cases," Exxon's lead lawyer, Ted Wells of law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP, wrote in the brief. "There is nothing untoward or surprising about any of this."

Mr. Wells reiterated Exxon's claim that the investigation by the attorney general, a Democrat, is politically motivated, saying he has been "working backwards from an assumption of Exxon Mobil's guilt, searching in vain for some theory to support his prejudgment."

The state "has a substantial basis to suspect that Exxon's proxy cost analysis may have been a sham," said Amy Spitalnick, a spokeswoman for Mr. Schneiderman. "This office takes potential misrepresentations to investors very seriously."

Exxon's arguments underscore the challenge New York's top prosecutor may face in asserting that the company is guilty of fraud in how it has accounted for climate risks.

Regulations on such disclosure are in the early stages of being developed, and many oil-and-gas companies have been slow to make changes or meet increasing investor demands for transparency on the subject.

Exxon and Mr. Schneiderman have repeatedly crossed swords over how Exxon has complied with the investigation's subpoenas. Mr. Schneiderman has alleged that Exxon is attempting to stall and delay the progress of the probe.

He has argued that, despite a subpoena issued in late 2015 when the investigation started, Exxon appears to have permanently deleted emails used by former Chief Executive Rex Tillerson under the alias "Wayne Tracker."

New Chief Executive Darren Woods also had an alias account under the name "J.E. Gray," although he doesn't appear to have used it, documents in the investigation show.

Exxon has acknowledged that several months of emails from the alias account of Mr. Tillerson, now U.S. secretary of state, were inadvertently deleted, but said it was able to recover most of the requested documents.

The company has submitted nearly 3 million pages of documents for the investigation and asked the New York court to reject Mr. Schneiderman's pursuit of additional documents and information.

Write to Bradley Olson at Bradley.Olson@wsj.com

Credit: By Bradley Olson

Subject: Attorneys general; Carbon; Natural gas utilities

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Jun 9, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1907515865

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1907515865?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Big Oil Steps Up Support for Carbon Tax; Exxon Mobil, BP and General Motors, among others, join group that advocates taxing carbon; see a way to reduce environmental regulations in the process

Author: Puko, Timothy

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 June 2017: n/a.

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Abstract: None available.

Links: 360 Link to Full Text

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Some of the world's largest oil companies and the country's biggest auto maker are joining a group pushing the U.S. government to tax carbon in an effort to slow climate change.

General Motors Co., Exxon Mobil Corp. and BP PLC are among almost a dozen companies joining the Climate Leadership Council, a new organization that advocates replacing many environmental regulations with a simplified tax on businesses that release carbon into the atmosphere. The plan proposes directly paying out this money to all citizens to defray the likely costs from rising energy prices.

A group of influential Republicans, including former secretaries of State George Shultz and James Baker, have spearheaded the group's efforts, which are at odds with many in their own party.

Since winning control of the White House and Congress last year, Republican lawmakers have worked to roll back Democratic policies aimed at reducing greenhouse gas emissions, culminating with President Donald Trump's decision to withdraw the U.S. from the Paris climate accord .

Several business leaders criticized that decision, and some of the companies joining the group, which officially launched in February, have advocated more aggressive policies to address rising temperatures and air pollution. Exxon, GM and the other corporations are joining alongside astrophysicist Stephen Hawking, hedge-fund magnate Ray Dalio, Harvard economist and former Obama economic adviser Larry Summers and others.

Exxon Chief Executive Darren Woods used his first blog post in that role this February to say a "revenue-neutral carbon tax" would be a "sensible approach" to cutting carbon emissions.

It can promote energy efficiency and incentivize low-carbon energy sources without "further burdening the economy," he wrote.

"We have been encouraged by the proposal put forth by the Climate Leadership Council as it aligns closely with our longstanding principles," Mr. Woods said in a statement Monday.

"We acknowledged long ago that climate change is real and that lowering emissions is both a social imperative and an economic opportunity," GM said in a statement. "Addressing climate change in an effective and sustainable manner requires a holistic approach involving all sectors of the economy."

By joining now, the companies will be able to help shape the fine details of the proposal that eventually comes from the council, said Ted Halstead, the group's chief executive.

A tax is also simple enough that, if passed, it would mean the country could eliminate a collection of regulations that have guided climate policy in the last several years, including the Obama administration's power plant rules, which the Trump administration has moved to reverse .

"My guess is that the big appeal is getting rid of all the regulatory morass," said Benjamin Salisbury, policy analyst at FBR & Co. But "with Republican domination in Washington, you are talking about the very early stages of a massive uphill climb."

Write to Timothy Puko at tim.puko@wsj.com

Credit: By Timothy Puko

Subject: Councils; Carbon; Environmental regulations; Environmental tax; Environmental policy; Industrial plant emissions; Climate change

Location: United States--US

People: Trump, Donald J Woods, Darren Dalio, Ray Hawking, Stephen

Company / organization: Name: BP PLC; NAICS: 211111, 324110, 447110; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Congress; NAICS: 921120; Name: Republican Party; NAICS: 813940

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Jun 20, 2017

Section: US

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1911025658

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1911025658?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-01-23

Database: The Wall Street Journal

How Earthquakes Are Rattling a Dutch Province Atop One of the World's Richest Gas Troves; Dutch government, Exxon and Shell argue over production levels after damaging temblors; prosecutor to open criminal probe

Author: Kent, Sarah

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 June 2017: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

GRONINGEN, The Netherlands--For decades, the giant Groningen gas field beneath the flat, green farmland in the north of this country counted among the greatest prizes for Exxon Mobil Corp. and Royal Dutch Shell PLC.

Then the earthquakes started.

The exploitation of Groningen--the biggest gas field in Europe--has been causing tremors for over two decades, rattling a bucolic province with no previous history of quakes and exposing two of the world's biggest energy companies to a criminal probe and rising reconstruction bills.

Amid a public outcry, the Dutch government has imposed increasingly strict limits that have more than halved Groningen's gas production since 2013. Now, authorities are proposing another 10% cut in hopes of further reducing earthquakes. And a Dutch public prosecutor is preparing to open a criminal investigation into responsibility for the earthquakes.

Shell and Exxon are pushing back through their joint venture, Nederlandse Aardolie Maatschappij BV or NAM. The venture says cutting output even more is "out of proportion and not effective," and would create uncertainty about the legal framework for its operations. It warns that continuous changes to the production level may ultimately threaten the business's profitability.

NAM said it is considering formally contesting the government's decision. It also expressed surprise at the Dutch court order to the prosecutor to open a criminal investigation this year, since the authorities had previously found no grounds for such action. The state will take a decision on whether to prosecute once the investigation is complete.

Groningen was expected to be one of the world's largest gas producers for decades to come. Last year, it made up almost 10% of both Exxon and Shell's total gas production globally and its reserves are among the companies' largest undeveloped resources.

Moreover, the field's profits have been lucrative for the Dutch government, which not only collects taxes from NAM but is also a 40% stakeholder in the field. Since production began, the field has generated almost [euro]300 billion ($335 billion) for Dutch coffers.

Exxon named restrictions on Groningen as a factor contributing to a nearly 4% decline last year in its global natural-gas output. Shell said Groningen issues were largely responsible for a decline of 636 billion cubic feet in proven reserve estimates for its European joint ventures, equivalent to nearly 2% of the company's total gas reserves at the end of 2016.

Under the current arrangement, the government bears 64% of the costs related to compensation to residents, efforts to reinforce buildings, lawsuits and other items.

It isn't the first time seismic activity has caused controversy in the energy industry. A U.S. debate has raged for years over whether water injection related to drilling has caused earthquakes in Oklahoma and Texas. Earthquakes like the ones in Groningen are less known and less understood.

Groningen's quakes were first officially linked to gas production in the 1990s, nearly 30 years after work on the field began. Decades of production have caused pressure in the porous ground containing the gas-bearing reservoir to decrease, according to the Shell-Exxon venture and the Dutch government. That increased the stress on natural faults, resulting in the earthquakes, the company and government say.

The tremors have caused widespread damage, though no deaths, in a province of nearly 600,000 people.

A large majority of the temblors registered low magnitudes of between 1.5 and 2, and early on NAM dismissed them as little more than a nuisance. But the public and authorities snapped to attention in 2012, when an earthquake of magnitude 3.6 rippled through Groningen province.

The region's homes and infrastructure, built on flat land, weren't designed to withstand even such low seismic instability. The tremors occur where Groningen's gas lies--just under 2 miles below ground level. That relatively shallow depth, and more significantly the soft, clay-like topsoil in much of the region, make for stronger ground movements than expected from earthquakes of such magnitude, according to the Netherlands State Supervision of Mines, which regulates gas extraction.

"The impact on the houses and streets is a split second. There are no rocks in between," said Hans Alders, a Dutch government official appointed to oversee efforts to strengthen and repair the province's buildings and infrastructure.

In a 2015 report, the Dutch Safety Board said NAM and the country's Ministry of Economic Affairs failed to "act with due care for citizen safety" and didn't adequately research the risks posed by earthquakes.

The government said it has recognized that mistakes have been made and has implemented the report's recommendations.

NAM hasn't disputed the findings and has made several public apologies. It has acknowledged liability for earthquake-related damage and paid out hundreds of thousands of euros in compensation, poured millions more into a fund to stimulate the region's flagging economy and put aside more than [euro]1 billion, mostly for a program to strengthen and repair buildings in the area. The bill is expected to grow.

NAM said while it would meet all its liabilities, it isn't possible to predict the exact costs of strengthening and repair in the years ahead.

The gas company could also be on the hook for nearly [euro]8 billion to fully compensate residents throughout the region for losses to property value and psychological damage, said Pieter Huitema, a Groningen lawyer who brought two successful civil suits on those issues.

NAM is appealing both lawsuits and said all numbers relating to the size of potential liabilities are unsubstantiated. The company said it already has a system to compensate residents for lower property values and needs more clarification on how to establish psychological damages.

Both Shell and Exxon said they are confident NAM could produce gas safely. "Safety is, and always has been, our primary focus," Exxon said in an email.

The earthquakes have unexpectedly persisted--albeit at a lower level--despite the Dutch restrictions on Groningen output. That unpredictability, and a belief that NAM failed to present an adequate plan to mitigate it, prompted the Dutch regulator to recommend the further output reduction earlier this year.

Jelle van der Knoop, president of the residents' association Groninger Bodem Beweging, said many residents want gas production to end altogether.

"The sooner they stop, the sooner there will be no earthquakes," Mr. van der Knoop said.

Write to Sarah Kent at sarah.kent@wsj.com

Related Coverage

* Quakes Give Province Unwanted Makeover

Credit: By Sarah Kent

Subject: Earthquakes; Seismic engineering; Natural gas

Location: Netherlands Europe

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Jun 25, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1913122621

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1913122621?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Quakes Giving Dutch Province 'A Makeover We Don't Want'; Exxon, Shell grapple with damage claims from earthquakes

Author: Kent, Sarah

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]25 June 2017: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

GRONINGEN, The Netherlands--Irma de Joode was talking on the phone with her brother when she heard what sounded like rolls of thunder and felt her entire house jump beneath her feet.

The Aug. 16, 2012, earthquake was the biggest ever to rock the flat, green plains of this northern Dutch province. The source was Europe's biggest natural gas field.

The earthquake was one of more than 300 temblors since 1991 that Royal Dutch Shell PLC, Exxon Mobil Corp. and the Dutch government acknowledge were caused by their activities at the Groningen gas field.

The quakes have led to nearly 80,000 damage claims by residents here, prompted a court to order a criminal investigation into the Shell-Exxon joint venture, and led to government limits on gas production to which the companies object.

The quakes have disrupted life in this once wealthy agricultural region, which spools across the north of the Netherlands to the sea in a verdant band punctuated by country villages, redbrick farmhouses and medieval churches.

Many of those historic structures are now scarred with cracks and ugly supportive struts; some have been torn down entirely. Property values have plummeted. Buildings here are sturdy, but they weren't made to withstand earthquakes, which were virtually unheard of in this part of the world until the early 1990s, when the gas quakes were first acknowledged.

In early 2013, after another quake shook her house, Ms. de Joode noticed serious structural damage to her home, a historic 19th-century farmhouse. She and her family put in a claim for compensation from Shell and Exxon's joint venture and pressured government officials for help to reinforce the building.

The process has taken five years of constant work, Ms. de Joode said, and disrupted the family's life.

"The stress you have every day," she said. For months after the damage, she lived with uncertainty over the house's stability. "I was very scared. When I had my grandchildren over, I tried to stay in safe parts of our house."

Shell and Exxon's joint venture, Nederlandse Aardolie Maatschappij BV, or NAM, has vowed to pay for any earthquake-induced damage. It has settled thousands of compensation claims and poured money into government efforts to reinforce local buildings and stimulate the local economy. Efforts are under way to try and improve the claims process.

Some residents see the benefits. Cees de Vries received financing through the economic fund NAM helped establish to boost his business--a landmark hotel in the village of Loppersum.

"People don't like that I say this," Mr. de Vries said. "I think without the earthquakes this whole region would have been going downhill anyway and now there's a lot of activity."

But Mr. de Vries acknowledged the continuing earthquakes create uncertainty for homeowners and businesses. Reinforcing buildings in the earthquake zone is expected to take years.

In a region known for its historic architecture, there are worries the new construction won't preserve the region's character, said Susan Top, secretary of the Groninger Gasberaad, a coalition of local civil society groups.

"We're all very afraid that it will get a makeover we don't want," she said.

Write to Sarah Kent at sarah.kent@wsj.com

Credit: By Sarah Kent

Subject: Earthquakes; Damage claims; Joint ventures; Natural gas

Location: Netherlands Europe

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Jun 25, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1913122917

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1913122917?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Business News: Dutch Quakes Rattle Exxon, Shell --- Big gas field is causing tremors, exposing energy firms to criminal probe and rising bills

Author: Kent, Sarah

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]26 June 2017: B.3.

ProQuest document link

Abstract: For decades, the giant Groningen gas field beneath the flat farmland in the north of this country counted among the greatest prizes for Exxon Mobil Corp. and Royal Dutch Shell PLC. Then the earthquakes started. Last year, it made up almost 10% of both Exxon and Shell's total gas production globally and its reserves are among the companies' largest undeveloped resources. [...]the field's profit has been lucrative for the Dutch government, which not only collects...

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GRONINGEN, Netherlands -- For decades, the giant Groningen gas field beneath the flat farmland in the north of this country counted among the greatest prizes for Exxon Mobil Corp. and Royal Dutch Shell PLC.

Then the earthquakes started.

The exploitation of Groningen -- the biggest gas field in Europe -- has been causing tremors for over two decades, rattling a bucolic province with no previous history of quakes and exposing two of the world's biggest energy companies to a criminal probe and rising reconstruction bills.

Amid a public outcry, the Dutch government has imposed increasingly strict limits that have more than halved Groningen's gas production since 2013. Now, authorities are proposing another 10% cut in hopes of further reducing earthquakes. And a Dutch public prosecutor is preparing to open a criminal investigation into responsibility for the earthquakes.

Shell and Exxon are pushing back through their joint venture, Nederlandse Aardolie Maatschappij BV, or NAM. The venture says cutting output even more is "out of proportion and not effective," and would create uncertainty about the legal framework for its operations. It warns that continuous changes to the production level might ultimately threaten the business's profitability.

NAM said it is considering formally contesting the government's decision. It also expressed surprise at the Dutch court order to the prosecutor to open a criminal investigation this year, because the authorities had previously found no grounds for such action. The state will make a decision on whether to prosecute once the investigation is complete.

Groningen was expected to be one of the world's largest gas producers for decades to come. Last year, it made up almost 10% of both Exxon and Shell's total gas production globally and its reserves are among the companies' largest undeveloped resources.

Moreover, the field's profit has been lucrative for the Dutch government, which not only collects taxes from NAM but is also a 40% stakeholder in the field. Since production began, the field has generated almost 300 billion euros ($336 billion) for Dutch coffers.

Exxon named restrictions on Groningen as a factor contributing to a nearly 4% decline last year in its global natural-gas output. Shell said Groningen issues were largely responsible for a decline of 636 billion cubic feet in proven reserve estimates for its European joint ventures, equivalent to nearly 2% of the company's total gas reserves at the end of 2016.

Under the current arrangement, the government bears 64% of the costs related to compensation to residents, efforts to reinforce buildings, lawsuits and other items.

It isn't the first time seismic activity has caused controversy in the energy industry. A U.S. debate has raged for years over whether water injection related to drilling has caused earthquakes in Oklahoma and Texas. Earthquakes like the ones in Groningen are less known.

Groningen's quakes were first officially linked to gas production in the 1990s, nearly 30 years after work on the field began.

The tremors have caused widespread damage, though no deaths, in a province of nearly 600,000 people. A large majority of the temblors registered low magnitudes of between 1.5 and 2. But authorities snapped to attention in 2012, when a quake of magnitude 3.6 hit.

The homes and infrastructure weren't designed to withstand even such low seismic instability. The tremors occur where Groningen's gas lies -- just under 2 miles below ground level.

In a 2015 report, the Dutch Safety Board said NAM and the country's Ministry of Economic Affairs failed to "act with due care for citizen safety" and didn't adequately research the risks posed by earthquakes.

The government has implemented the report's recommendations.

NAM hasn't disputed the findings and has made several public apologies. It has acknowledged liability for earthquake-related damage and paid out hundreds of thousands of euros in compensation, poured millions more into a fund to stimulate the economy and put aside more than 1 billion euros, mostly for a program to strengthen and repair buildings in the area.

The gas company could also be on the hook for nearly 8 billion euros to fully compensate residents throughout the region for losses to property value and psychological damage, said Pieter Huitema, a Groningen lawyer who brought two successful civil suits on those issues.

NAM is appealing both lawsuits and said all numbers relating to the size of potential liabilities are unsubstantiated.

Both Shell and Exxon said they are confident NAM could produce gas safely.

(See related article: "Groningen Field Disrupts Bucolic Farm Life" -- WSJ June 26, 2017)

Credit: By Sarah Kent

Subject: Earthquakes; Seismic engineering; Energy industry; Natural gas

Location: Europe Netherlands

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Nederlandse Aardolie Maatschappij BV; NAICS: 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2017

Publication date: Jun 26, 2017

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1913299643

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1913299643?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

U.S. Fines Exxon $2 Million Over Russia Sanctions Breaches; Treasury department, in handing down maximum penalty, cites energy giant's dealings with president of Russian-state oil firm

Author: Rubenfeld, Samuel; Cook, Lynn; Talley, Ian

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]20 July 2017: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

WASHINGTON--The Treasury Department imposed a $2 million fine on Exxon Mobil Corp. for what it called a "reckless disregard" of U.S. sanctions on Russia while Secretary of State Rex Tillerson was the oil giant's chief executive. The company immediately said it would challenge the finding.

Exxon, under Mr. Tillerson's helm , in early 2014 deepened the company's longstanding partnership with the Kremlin despite Washington levying fresh sanctions against Russia for seizing territory in eastern Ukraine. In May 2014, Treasury said the company signed eight documents relating to oil-and-gas projects in Russia that were also signed by Igor Sechin, chief executive of the state oil giant PAO Rosneft. Treasury on Thursday said those deals were violations of U.S. sanctions against Mr. Sechin , a former Russian intelligence officer and top ally to President Vladimir Putin.

Mr. Tillerson, who has close ties to Russia and received an "Order of Friendship" award from Moscow, left Exxon last year to become U.S. secretary of state. The $2 million fine, Treasury said, was the maximum amount it could levy against the company.

A spokesman for Exxon called the fine "outrageous" and said Treasury's findings are a 180-degree turn from previous guidance handed down by the Obama administration at the time the sanctions were enacted.

Exxon doesn't have any direct deals with Mr. Sechin, but does have business dealings with Rosneft, where Mr. Sechin in his capacity as CEO signed company documents, Exxon said. Under President Barack Obama, the White House and Treasury in 2014 said U.S. companies were allowed to participate in business dealings with Mr. Sechin if they were professional, not personal, Exxon said.

The Office of Foreign Assets Control "seeks to retroactively enforce a new interpretation of an executive order that is inconsistent with the explicit and unambiguous guidance from the White House and Treasury issued before the relevant conduct and still publicly available today," Exxon said in a filing in U.S. District Court in the Northern District of Texas.

When Mr. Tillerson took his position in President Trump's cabinet he promised to recuse himself from matters involving Exxon for one year. He hasn't spoken out expressly against the sanctions since taking office.

The company showed "reckless disregard for U.S. sanctions requirements" when failing to consider the warning signs associated with dealing in the blocked services of someone under U.S. sanctions, the U.S. Treasury said in an enforcement notice.

The State Department referred questions to Exxon.

Rosneft spokesman Michael Leontiev told The Wall Street Journal in an email, "I am sure that while Exxon was preparing the decision about documents signing it consulted with both OFAC and lawyers specialized on sanctions very carefully." Mr. Leontiev said that signing an agreement with Mr. Sechin not as an individual, but as a representative of Rosneft management, can't be the foundation for a sanctions violation.

The penalty, issued by Treasury's sanctions unit, the Office of Foreign Assets Control, comes as committees in the Senate and House of Representatives, as well as a Justice Department special prosecutor, investigate what U.S. intelligence agencies say was a Kremlin-backed campaign to interfere in the presidential election, and whether there was any collusion between the Trump campaign and Russia. President Donald Trump has denied any collusion. Russia has denied meddling.

"ExxonMobil caused significant harm to the Ukraine-related sanctions program objectives by engaging the services" of a sanctioned entity, Treasury said.

Exxon and other big energy companies recently joined President Trump in voicing concerns about Congressional efforts to toughen sanctions on Russia, arguing that it could shut down oil and gas projects around the world that involve Russian partners. Exxon unsuccessfully sought a sanctions waiver from the administration on at least one Russian deal.

Lobbyists for Exxon told lawmakers that several provisions in the sanctions legislation under consideration on Capitol Hill are worrisome, including measures to prohibit partnerships with Russian individuals. Companies have also voiced concern that the bill could force them to disclose information they consider proprietary.

Write to Lynn Cook at lynn.cook@wsj.com and Ian Talley at ian.talley@wsj.com

Credit: By Samuel Rubenfeld, Lynn Cook and Ian Talley

Subject: Presidents; Sanctions; Federal legislation

Location: Russia United States--US Crimea

People: Tillerson, Rex W Putin, Vladimir Obama, Barack

Company / organization: Name: Department of the Treasury; NAICS: 921130; Name: OAO Rosneft; NAICS: 324110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Jul 20, 2017

Section: US

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Bu siness And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1920408900

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1920408900?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

U.S. and Exxon Spar Over Russia Sanctions Violation; Treasury cites energy giant's dealings with Russian oil executive in notice for $2 million fine; the company says it will challenge findings

Author: Rubenfeld, Samuel; Cook, Lynn; Talley, Ian

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]21 July 2017: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

WASHINGTON--The U.S. Treasury Department on Thursday imposed a $2 million fine on Exxon Mobil Corp. for what it called a "reckless disregard" of U.S. sanctions on Russia while Secretary of State Rex Tillerson was the oil giant's chief executive, a finding the company immediately began to challenge.

Exxon, under Mr. Tillerson , in early 2014 deepened the company's longstanding partnership with the Kremlin despite Washington levying sanctions against Russia for annexing Crimea and supporting pro-Russia separatists in eastern Ukraine. In May of that year, the Treasury Department said the company signed eight documents relating to oil and gas projects in Russia that were also signed by Igor Sechin, chief executive of the state oil giant PAO Rosneft. The Treasury said Thursday those deals violated U.S. sanctions against Mr. Sechin , a former Russian intelligence officer and ally to President Vladimir Putin.

Mr. Tillerson, who had close business ties to Russia and received an "Order of Friendship" award from Moscow, left Exxon last year to become U.S. secretary of state.

The $2 million fine, the Treasury said, was the maximum amount it could levy against the company.

A spokesman for Exxon called the fine "outrageous" and said it would fight the Treasury's findings, saying they are a 180-degree turn from previous guidance handed down by the Obama administration when the sanctions were enacted. The Treasury's sanctions unit started its probe of the alleged sanctions violation several years ago. Exxon said it was first notified in 2015 by the sanctions unit, the Office of Foreign Assets Control, that it had violated sanctions regarding its interactions with Mr. Sechin. In a filing in a Texas court Thursday, the company said it had challenged the notification about a month later.

Exxon doesn't have any direct deals with Mr. Sechin but does have business dealings with Rosneft, where Mr. Sechin signed company documents in his capacity as CEO, Exxon said. According to the company, under President Barack Obama, the White House and the Treasury in 2014 said U.S. companies were allowed to participate in business dealings with Mr. Sechin if they were professional, not personal.

On Thursday afternoon, the Irving, Texas, company filed a complaint in U.S. District Court in the Northern District of Texas, seeking to toss the fine. In a court filing, Exxon said the sanctions unit "seeks to retroactively enforce a new interpretation of an executive order that is inconsistent with the explicit and unambiguous guidance from the White House and the Treasury issued before the relevant conduct and still publicly available today."

The Justice Department declined to comment about Exxon's legal challenge.

The U.S. Treasury said in an enforcement notice against Exxon that the company showed "reckless disregard for U.S. sanctions requirements" when failing to consider the warning signs associated with dealing in the blocked services of someone under U.S. sanctions. The Treasury unit said one of the "aggravating factors" it considered was that Exxon is a globally sophisticated company that routinely deals with sanctions compliance concerns.

"No materials issued by the White House or the Department of the Treasury asserted an exception or carve-out for the professional conduct of designated or blocked persons, nor did any materials suggest that U.S. persons could continue to conduct or engage in business with such individuals," the Thursday notice said.

When Mr. Tillerson took his position in President Donald Trump's cabinet this year, he promised to recuse himself from matters involving Exxon for one year. He has stood by the current sanctions regime. In Ukraine earlier this month, Mr. Tillerson said the U.S. sanctions on Russia--imposed along with sanctions from the European Union--would remain "until Moscow reverses the actions that triggered these particular sanctions."

Mr. Tillerson, as Mr. Trump's top diplomat, has been leading administration efforts to improve relations with Russia.

"This is a big black eye for Tillerson," said Anders Åslund, a senior fellow and Russia expert at the Atlantic Council, a Washington think tank and Russia critic.

Though the State Department referred most questions about this specific matter to Exxon, spokeswoman Heather Nauert said Thursday that Mr. Tillerson is committed to the objectives of the Ukraine-related sanctions. She said the State Department wasn't involved with the decision to fine Exxon. She said Mr. Tillerson is "living up to his ethical commitments," including his recusal from Exxon-related matters.

Rosneft spokesman Michael Leontiev said signing an agreement with Mr. Sechin not as an individual, but as a representative of Rosneft management, can't be the foundation for a sanctions violation. "I am sure that while Exxon was preparing the decision about documents signing it consulted with both OFAC and lawyers specialized on sanctions very carefully," he said.

The penalty comes as committees in the Senate and House of Representatives, as well as a Justice Department special counsel, investigate what U.S. intelligence agencies say was a Kremlin-backed campaign to interfere in the presidential election, and whether there was any collusion between the Trump campaign and Russia. Russia has denied meddling and Mr. Trump has denied any collusion.

"Exxon Mobil caused significant harm to the Ukraine-related sanctions program objectives by engaging the services" of a sanctioned entity, the Treasury said.

Exxon applied to the Treasury Department for a partial waiver from Russia sanctions in 2015. The application was never acted upon at that time but was again circulating among government departments earlier this year. The Trump administration said in April that it wouldn't grant the waiver , two days after the application was reported by The Wall Street Journal .

Exxon and other big energy companies also recently joined Mr. Trump in voicing concerns about congressional efforts to toughen sanctions on Russia, arguing that it could shut down oil and gas projects around the world that involve Russian partners. Mr. Tillerson opposed ramped-up sanctions being considered in Congress, saying the White House needs flexibility on the matter.

Lobbyists for Exxon told lawmakers in recent weeks that several provisions in the sanctions legislation under consideration on Capitol Hill are worrisome, including measures to prohibit partnerships with Russian individuals.

Felicia Schwartz contributed to this article.

Write to Lynn Cook at lynn.cook@wsj.com and Ian Talley at ian.talley@wsj.com

Credit: By Samuel Rubenfeld, Lynn Cook and Ian Talley

Subject: Political campaigns; Sanctions; Energy industry

Location: Texas Russia United States--US

People: Putin, Vladimir Obama, Barack

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: District Court-US; NAICS: 922110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Jul 21, 2017

Section: US

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1920482723

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1920482723?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

U.S. and Exxon Spar Over Russia Sanctions

Author: Rubenfeld, Samuel; Cook, Lynn; Talley, Ian

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]21 July 2017: A.1.

ProQuest document link

Abstract: The U.S. Treasury Department on Thursday imposed a $2 million fine on Exxon Mobil Corp. for what it called a "reckless disregard" of U.S. sanctions on Russia while Secretary of State Rex Tillerson was the oil giant's chief executive, a finding the company immediately said it would challenge. According to the company, under President Barack Obama, the White House and Treasury in 2014 said U.S. companies were allowed to participate in business dealings with Mr. Sechin if they were professional, not personal. On Thursday afternoon, the Irving, Texas-based company filed a complaint in U.S. District Court in the Northern District of Texas, seeking to toss the fine. In a court filing, Exxon said the sanctions unit "seeks to retroactively enforce a new interpretation of an executive order that is inconsistent with the explicit and unambiguous guidance from the White House and Treasury issued before the relevant conduct and still publicly...

Links: 360 Link to Full Text

Full text:

WASHINGTON -- The U.S. Treasury Department on Thursday imposed a $2 million fine on Exxon Mobil Corp. for what it called a "reckless disregard" of U.S. sanctions on Russia while Secretary of State Rex Tillerson was the oil giant's chief executive, a finding the company immediately said it would challenge.

Exxon, under Mr. Tillerson, in early 2014 deepened the company's longstanding partnership with the Kremlin despite Washington evying sanctions against Russia for annexing Crimea and supporting pro-Russia separatists in eastern Ukraine. In May of that year, the Treasury Department said the company signed eight documents relating to oil and gas projects in Russia that were also signed by Igor Sechin, chief executive of the state oil giant PAO Rosneft. Treasury said Thursday those deals violated U.S. sanctions against Mr. Sechin, a former Russian intelligence officer and top ally to President Vladimir Putin.

Mr. Tillerson, who had close business ties to Russia and received an "Order of Friendship" award from Moscow, left Exxon last year to become U.S. Secretary of State. The $2 million fine, Treasury said, was the maximum amount it could levy against the company.

A spokesman for Exxon called the fine "outrageous" and said it would fight the Treasury's findings, saying they are a 180-degree turn from previous guidance handed down by the Obama administration when the sanctions were enacted. Treasury's sanctions unit started its probe of the alleged sanctions violation several years ago. Exxon said it was first notified in 2015 by Treasury's sanctions unit, the Office of Foreign Assets Control, that it had violated sanctions regarding its interactions with Mr. Sechin. In a filing in a Texas court Thursday, the company said it had challenged the notification about a month later.

Exxon doesn't have any direct deals with Mr. Sechin, but does have business dealings with Rosneft, where Mr. Sechin signed company documents in his capacity as CEO, Exxon said. According to the company, under President Barack Obama, the White House and Treasury in 2014 said U.S. companies were allowed to participate in business dealings with Mr. Sechin if they were professional, not personal.

On Thursday afternoon, the Irving, Texas-based company filed a complaint in U.S. District Court in the Northern District of Texas, seeking to toss the fine. In a court filing, Exxon said the sanctions unit "seeks to retroactively enforce a new interpretation of an executive order that is inconsistent with the explicit and unambiguous guidance from the White House and Treasury issued before the relevant conduct and still publicly available today."

The Justice Department declined to comment about Exxon's legal challenge.

The U.S. Treasury said in an enforcement notice against Exxon that the company showed "reckless disregard for U.S. sanctions requirements" when failing to consider the warning signs associated with dealing in the blocked services of someone under U.S. sanctions. The Treasury unit said one of the "aggravating factors" it considered was that Exxon is a globally sophisticated company that routinely deals with sanctions compliance concerns.

The Thursday notice said: "No materials issued by the White House or the Department of the Treasury asserted an exception or carve-out for the professional conduct of designated or blocked persons, nor did any materials suggest that U.S. persons could continue to conduct or engage in business with such individuals."

When Mr. Tillerson took his position in President Donald Trump's cabinet this year, he promised to recuse himself from matters involving Exxon for one year. He has stood by the current sanctions regime. In Ukraine earlier this month, Mr. Tillerson said the U.S. sanctions on Russia -- imposed along with sanctions from the European Union -- would remain "until Moscow reverses the actions that triggered these particular sanctions."

Mr. Tillerson, as Mr. Trump's top diplomat, has been leading administration efforts to improve relations with Russia.

Though the State Department referred most questions about this specific matter to Exxon, spokeswoman Heather Nauert said Mr. Tillerson is committed to the objectives of the Ukraine-related sanctions. She said the State Department wasn't involved with the decision to fine Exxon. She said Mr. Tillerson is "living up to his ethical commitments," including his recusal from Exxon-related matters.

Rosneft spokesman Michael Leontiev said signing an agreement with Mr. Sechin not as an individual, but as a representative of Rosneft management, can't be the foundation for a sanctions violation. "I am sure that while Exxon was preparing the decision about documents signing it consulted with both OFAC and lawyers specialized on sanctions very carefully," he said.

The penalty comes as committees in the Senate and House, as well as a Justice Department special counsel, investigate what U.S. intelligence agencies say was a Kremlin-backed campaign to interfere in the election, and whether there was any collusion between the Trump campaign and Russia. Russia has denied meddling and Mr. Trump has denied any collusion.

"ExxonMobil caused significant harm to the Ukraine-related sanctions program objectives by engaging the services" of a sanctioned entity, Treasury said.

Exxon applied to the Treasury Department for a partial waiver from Russia sanctions in 2015. The application was never acted upon at that time but was again circulating among government departments earlier this year. The Trump administration said it wouldn't grant the waiver in April.

Exxon and other big energy companies also recently joined Mr. Trump in voicing concerns about congressional efforts to toughen sanctions on Russia, arguing that it could shut down oil and gas projects around the world that involve Russian partners. Mr. Tillerson opposed ramped-up sanctions being considered in Congress, saying the White House needs flexibility on the matter.

Lobbyists for Exxon told lawmakers in recent weeks that several provisions in the sanctions legislation under consideration are worrisome, including measures to prohibit partnerships with Russian individuals.

---

Felicia Schwartz contributed to this article.

Credit: By Samuel Rubenfeld, Lynn Cook and Ian Talley

Subject: Fines & penalties; Sanctions; Energy industry

Location: Russia United States--US

People: Putin, Vladimir Tillerson, Rex W

Company / organization: Name: Department of the Treasury; NAICS: 921130; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.1

Publication year: 2017

Publication date: Jul 21, 2017

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1920593601

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1920593601?accountid=7117

Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Investors to Big Oil: Restrain Yourselves; Exxon, Shell, BP, Chevron are under pressure to show they can keep spending under control

Author: Kent, Sarah

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]26 July 2017: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

Three years into an oil-price slump, investors want the world's biggest oil companies to do something they have historically struggled with: Maintain some financial discipline.

The companies are under pressure to show they are continuing to move on from budget-busting projects once common in the industry, as they head into second-quarter financial disclosures that begin on Thursday with Royal Dutch Shell PLC and Total SA.

Shell, Total and peers such as Exxon Mobil Corp. and Chevron Corp., which both report earnings Friday, have reined in spending through an oil-market downturn during which crude prices fell from $114 a barrel to $27 a barrel and remain about $50 a barrel. Those efforts paid off in the first quarter, when the companies returned to billion-dollar profits after years of losses or anemic earnings.

Now, said Jags Walia, senior portfolio manager at Dutch pension-fund manager APG Asset Management, "there's no room to take your foot off on capital discipline."

"I think that would be quite unforgivable," said Mr. Walia, whose fund invests in several large oil companies, including Exxon, Shell and BP PLC.

It is a call for big oil companies to keep their businesses steady in a tricky financial environment.

International oil prices were up nearly 10% in the second quarter compared with the same time last year. But prices are still likely too low for many companies to cover spending and dividends with cash, or break even. At the same time, the companies have to keep finding new oil to replace the barrels they are pumping. That means spending money on exploration, development and acquisitions.

BP, which reports earnings next Tuesday, faced criticism from investors and analysts after a flurry of acquisitions inflated its investment plans for 2017 and pushed up the oil price at which the company could break even to $60 a barrel. The company's shares fell 4% after the February announcement. It has since said it is working to drive down its break-even oil price to between $35 to $40 a barrel by 2021.

It isn't just BP. The number of new projects approved this year across the industry is expected to creep up to between 20 and 25 from just 12 in 2016, according to Edinburgh-based consultancy Wood Mackenzie.

The oil companies declined to comment ahead of their earnings reports.

But they have moved to tackle the challenges.

BP's costs are down 40% since 2013 and it has vowed to maintain a budget cap of $17 billion a year out to 2021.

At BP's first-quarter results in May, Chief Financial Officer Brian Gilvary said the company intended to deliver on promises to increase cash flow and dividends in coming years by "maintaining strict discipline within our financial frame and staying focused on delivering returns."

Exxon's capital spending last year was $12 billion lower than in 2015, though it has crept higher this year. The company says it is focusing a chunk of its firepower on shale developments that start to generate cash quickly.

Chevron has said it will be able to cover its spending and dividends with cash at $50 a barrel this year with the help of asset sales. In April, Chevron said it had lowered capital spending 22% compared with its average quarter in 2016 and 56% versus the average quarter in 2014. The company plans to spend $17 billion to $22 billion a year out to the end of the decade.

"If oil prices remain near the $50 per barrel mark, you can expect to see our future spend near the bottom of this range," Chief Financial Officer Patricia Yarrington told analysts in April.

The companies have said that they still have room to cut further and that they can start to invest in new projects without returning to the spendthrift era that eroded returns before the oil-price crash in 2014. Capital spending on new projects sanctioned so far this year is on average just $11 per barrel of oil equivalent, down from $15 in 2015, according to Wood Mackenzie.

"I think a lot of these companies have found religion," said Brian Youngberg, senior energy analyst at brokerage firm Edward Jones. "They realize now they can't just spend, spend, spend. They have to be more disciplined with their capital."

Exxon, Shell, BP and Chevron have all indicated they will be able to generate enough cash this year to cover spending and shareholder payouts at $60 a barrel, but at $50 the picture is more mixed. Even next year, many of them will still need higher oil prices to cover their costs, according to analysis by Macquarie.

Investors remain cautious. Big oil companies' share prices are little changed or lower than at the same time last year, even though oil prices are higher. For instance, Exxon's share price is down more than 10% from a year ago.

The companies still have high debt levels, and some--like Shell and Total--offer dividends as company shares, known as scrip, helping them to preserve cash but also diluting investors' earnings per share.

"We need to see discipline and people being more realistic about where oil prices could remain for quite a long time," said Jason Kenney, an oil-company analyst at Spanish lender, Banco Santander.

It is a tall order for an industry that struggled to break even when oil was at $100 a barrel. And the challenge facing the companies could be more difficult after banks revised their oil-price forecasts downward in recent months.

"The goal posts have moved," Deutsche Bank said earlier this month. "It's time to go away and remodel for a $45 to $50 a barrel world."

Write to Sarah Kent at sarah.kent@wsj.com

Credit: By Sarah Kent

Subject: Dividends; Discipline; Investments; Earnings per share; Crude oil prices; Capital expenditures; Energy economics

People: Gilvary, Brian

Company / organization: Name: APG Asset Management; NAICS: 523930

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Jul 26, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1923243057

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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11 -25

Database: The Wall Street Journal

Exxon Working Toward Restarting Baytown Refinery, the Second-Largest in the U.S. Company says units at its other Texas-coast refinery, in Beaumont, remain shut down

Author: Molinski, Dan

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Sep 2017: n/a.

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Exxon Mobil Corp. said it is working toward restarting its Houston-area Baytown refinery--the nation's second-largest oil refinery--after a shutdown due to Tropical Storm Harvey, but said another of its coastal Texas refineries remains closed.

Exxon's two processing plants were among nearly a dozen refineries forced to halt operations due to Harvey, which wreaked havoc on three of the U.S.'s main refining hubs along the Texas coastline--Corpus Christi, Houston and the Port Arthur/Beaumont region. The closures have taken around 20% of U.S. refining capacity offline and have caused gasoline prices to soar, both at the wholesale and retail levels, amid concerns many of the refineries may be damaged and stay shut for weeks.

"Our initial assessment of Exxon Mobil's Baytown complex revealed the need for only minor repairs," the company said in a statement late Saturday. "We are making good progress on restart activities."

It said the specific timing for returning to normal operations at the 560,000-barrel-a-day Baytown plant will depend largely on the availability and condition of transportation infrastructure. "We are working with the Port of Houston to expedite vessels through the Houston Ship Channel and we are coordinating with railroads to help facilitate necessary repairs," it said.

As for Exxon's other Texas-coast refinery, its 362,000-barrel-a-day Beaumont plant east of Houston, it said "units at the Beaumont refinery remain shut down," without providing further details.

The announcements by Exxon comes as Phillips 66 said it is hoping to re-start its 247,000-barrel-a-day Sweeny refinery, located in Old Ocean near Houston. "We are currently assessing the condition of our impacted facilities and making repairs and other preparations to begin the process of resuming operations," it said Saturday. Also, four of the main refineries in the Corpus Christi region, plants owned by Valero Energy Corp, Venezuela's Citgo, and Kansas-based Flint Hills Resources, have also announced restart efforts.

The nation's largest refinery, the 603,000-barrel-a-day Saudi Arabian Oil Co's Motiva Port Arthur facility, remains shut and the company's most recent statement last week said it has no timeline for a restart. But it noted "unprecedented flooding" in the city of Port Arthur, where the refinery is located, 90 miles east of Houston.

Write to Dan Molinski at Dan.Molinski@wsj.com

Credit: By Dan Molinski

Subject: Chemical industry; Ports; Shutdowns

Location: Texas United States--US Venezuela

Company / organization: Name: Valero Energy Corp; NAICS: 211111, 324110, 486210; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Saudi Arabian Oil Co; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Sep 3, 2017

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1934726927

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Last updated: 2017-11-25

Database: The Wall Street Journal

Brazil Holds Its Most Successful Oil Auction; Petrobras, Exxon team up in six exploration blocks in Campos Basin

Author: Kiernan, Paul

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Sep 2017: n/a.

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RIO DE JANEIRO--Brazil held its most successful oil auction ever Wednesday, as a new partnership between state-run Petróleo Brasileiro SA and Exxon Mobil Corp. agreed to shell out $1.1 billion for rights to drill in coveted offshore areas.

Petrobras and Exxon teamed up in six exploration blocks in the Campos Basin off Brazil's southeastern coast, at least some of which are believed to hold oil in an ultra-deep layer known as the "pre-salt." Though the companies agreed to split the financial burden of developing the blocks 50-50, Petrobras will operate all six of them, meaning it will make the key decisions.

The auction marked a return by Exxon, the world's largest publicly traded oil company, to Brazil after it abandoned efforts to drill in the neighboring Santos Basin in 2012. The Wall Street Journal reported in April that Exxon was discussing a possible partnership with Petrobras in hopes of regaining a foothold in one of the world's richest areas for offshore oil exploration.

Exxon Mobil's chief executive in Brazil, Carla Lacerda, declined to comment.

For Brazil, the signing bonuses from Exxon and Petrobras, which beat bids by majors including Shell, Repsol, Cnooc, Total and BP, marked a boon to government efforts to attract private investment as the country recovers from its deepest recession ever. Officials had predicted signing bonuses would fall in the range of $157 million to $313 million.

Since taking office last year, conservative President Michel Temer has sought to loosen regulations that had limited private-sector interest in Brazil, even after the Western Hemisphere's largest discoveries in three decades were made here in 2007.

In November, the government scrapped rules that Petrobras operate and take a minimum 30% stake in all pre-salt fields. This year, the government also reduced the minimum levels of equipment and machinery that oil companies are required to source locally, which drove up Brazil's production costs.

"What we need to do is exploit our potential at a moment when the economy needs the oil-and-gas industry more than ever," Energy Minister Fernando Coelho Filho said.

Speaking to reporters, Petrobras CEO Pedro Parente attributed the company's willingness to fork over big bucks to "the whole suite of measures that the government has adopted to increase the regulatory framework [and] stimulate investment."

He also suggested Petrobras knew something about the blocks on offer that its rivals didn't. "Petrobras is the company that naturally has the greatest body of information about the Brazilian offshore, so you should be able to imagine that we wouldn't pay the amount we paid if we didn't have information that it was worth it," Mr. Parente said.

Petrobras and Exxon agreed to pay a total $1.08 billion in signing bonuses for just two blocks, dubbed C-M-346 and C-M-411. In the former, their bid was more than five times higher than the runner-up consortium formed by Shell and Repsol. In the latter block, Petrobras and Exxon offered nearly 25 times as much as runners-up Total and BP.

Magda Chambriard, the former head of Brazil's national oil agency, known as the ANP, said the blocks Petrobras and Exxon won together are unique because studies have shown them to contain oil in the pre-salt layer, where Brazil's largest reserves have been found. But the blocks were auctioned under a less-onerous concession regime than is usually the case for pre-salt oil.

"Those blocks are special because they're...well-identified as pre-salt, with good-quality seismic, a lower government take and without that whole pile of red tape," Ms. Chambriard said. "That's why bids were so high."

Wednesday's auction was the first of nine that Brazil plans to hold through 2019. The next two, scheduled for Oct. 27, will take place under the pre-salt regime and are seen generating $2.42 billion in signing bonuses, said ANP Director Décio Oddone.

Mr. Parente said the decision for Petrobras to operate all the blocks in which it partnered with Exxon was mutual and based on its position as the undisputed leader in Brazil's deep-water sector.

But Petrobras faces challenges that are equally unmatched in the oil industry. It has the largest debt burden of any oil company, is at the center of the biggest corruption scandal ever uncovered, and is exposed to meddling by Brazilian politicians due to the government's controlling stake in the company.

While Mr. Parente, whom Mr. Temer appointed last year, is widely seen as a competent executive, analysts say Brazil's 2018 presidential election represents a major risk to Petrobras's prospects for fixing its balance sheet.

Write to Paul Kiernan at paul.kiernan@wsj.com

Credit: By Paul Kiernan

Subject: Acquisitions & mergers; Auctions; Offshore oil exploration & development

Location: Brazil Western Hemisphere

People: Temer, Michel

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Petroleos Brasileiro SA; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Sep 27, 2017

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1943293291

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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Oil Companies Defend Big Bets on Gas; Exxon, Shell adding to a wave of gas supply but uncertain demand has hurt prices

Author: Cook, Lynn

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]17 Oct 2017: n/a.

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Corrections & Amplifications

China is the largest emitter of CO2 in the world, and the U.S. is the second largest. An earlier version of this article incorrectly stated said that the U.S. still had the largest carbon emissions. (Oct. 17, 2017)

LONDON--The world's biggest oil companies have defended their giant bets on natural gas at a major energy conference, saying demand will soon emerge for the huge supplies of fuel they are bringing to the market.

Robert Franklin, Exxon Mobil Corp.'s vice president in charge of gas and power, said natural gas demand was rising in China, where imports of liquefied natural gas are up 40% in the past year. He said he believed India would follow China's lead soon, recalling talks this month among energy executives and Indian Prime Minister Narendra Modi who sought ideas for switching India to a gas-based economy.

"If I'm bullish about gas generation in China and India, then I'm bullish about natural gas," Mr. Franklin said at Oil & Money, a major energy conference in London that draws executives, investors and government officials.

Exxon and its rivals have invested more than $700 billion dollars in new natural-gas projects from the U.S. to Africa to Australia from 2007 to 2016, unleashing huge new quantities of gas. Exxon and Royal Dutch Shell PLC both say they produce more gas than oil now, and the same will be true for BP PLC within a decade--much of it via liquefied natural gas, which can be shipped around the world like oil.

That new potential for natural-gas supply comes as big petrostates like Qatar and Russia also plan to produce more gas. The flood of supply has depressed LNG prices and raised uncertainty about where all the new natural gas will be consumed.

Many countries don't have the infrastructure to import the fuel or the money to make the required changes.

Developing LNG markets still lack a coherent business model, said Charif Souki, chairman of Tellurian, which develops natural-gas projects. "We lack the infrastructure," Mr. Souki said.

The question's urgency was underscored by an entire day of talks at Oil & Money about natural gas, the first time the organizers have devoted a day to a fuel source other than crude oil.

The fuel is widely seen as a relatively low-emissions bridge from dirtier fuels such as coal to a future where renewable energy sources such as wind and solar become more prominent.

The U.S. is the second-largest emitter of CO2 behind China and has reduced its carbon output 21% over 10 years by shutting old coal-fired power plants and launching new natural-gas power stations.

"Governments around the world are getting on board in boosting gas supply and use," said Ajay Shah, a vice president with Shell Energy Asia.

Fossil-fuel producers underestimate renewables growth at their peril, said Otto Waterlander, a senior partner at McKinsey & Co. The industry has consistently bet renewable energy sources would grow more slowly than they actually have, and it has underestimated how reliable those greener energy sources would be.

"Let's be a bit more cautious on what's coming next," he said.

Mr. Franklin of Exxon took aim at two policies that have dented the outlook for natural-gas growth: Trump administration climate-change moves and European regulations favoring renewables.

Mr. Franklin bemoaned the U.S. move to exit from the Paris climate accord , saying that the company's chief executive, Darren Woods, "implored" President Donald Trump not to walk away from the deal to curb greenhouse gas emissions.

And he called European policies to promote solar and wind power growth "frankly ineffective subsidies," saying gas-fired power stations do more to help the environment.

The White House didn't immediately respond to a request for comment. Mr. Trump has said he is open to negotiating a better climate deal for the U.S.

The Trump administration has also made moves to support the coal industry.

Sarah Kent, Georgi Kantchev and Christopher Alessi contributed to this article.

Write to Lynn Cook at lynn.cook@wsj.com

Related Reading

* Global Gas Producers Turn to Next Challenge: Finding Buyers

* Long Promised, the Global Market for Natural Gas Has Finally Arrived (June 6)

* Why Blackstone Is Betting $7 Billion on Natural Gas (Aug. 15)

Credit: By Lynn Cook

Subject: Emissions; Coal-fired power plants; Alternative energy sources; Energy resources; Emission standards; Industrial plant emissions; Natural gas

Location: Russia United States--US India Qatar Australia Africa China

People: Modi, Narendra

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: BP PLC; NAICS: 211111, 324110, 447110; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Oct 17, 2017

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1951589695

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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

Exxon, Shell, BP Join Forces to Cut Emissions From Natural Gas; The group plans to push principles to reduce methane emissions from natural gas production, transportation and consumption

Author: Kent, Sarah; Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]22 Nov 2017: n/a.

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LONDON--Exxon Mobil Corp. has joined with seven other big energy companies to reduce pollution from natural gas production, an effort by the industry to present itself as part of the solution as governments and consumers demand more environmentally friendly energy.

Big oil companies like Exxon and Royal Dutch Shell PLC have increasingly touted natural gas as a core tool to combat climate change, since it is produces fewer greenhouse gas emissions than the fuel it often replaces in electricity production, coal.

The rare trans-Atlantic alignment was first reported by The Wall Street Journal, ahead of the companies' announcement Wednesday. The collaboration by companies including Exxon, Shell, BP PLC and Total SA, shows the oil and gas sector is proactively trying to address burgeoning concerns about natural gas emissions to ensure that its big bet on the fossil fuel pays off.

Major energy companies have made big investments in gas in recent years and are steadily growing their production volumes. They argue that it will prove a vital source of energy stability even as renewables increase their market share, since gas can be burned when the sun isn't shining or the wind isn't blowing.

But methane, the main component in natural gas, is also a potent greenhouse gas and the issue of fugitive emissions that occur when it leaks into the atmosphere is starting to draw negative attention.

Exxon and its partners said Wednesday that they have signed up to a set of guiding principles, committing to drive down methane emissions from their assets, encourage better performance from their peers, improve transparency and data accuracy on the matter and advocate for better regulation.

"The commitment was made as part of wider efforts by the global energy industry to ensure that natural gas continues to play a critical role in helping meet future energy," the companies said in a joint statement. "Its role in the transition to a low-carbon future will be influenced by the extent to which methane emissions are reduced."

A recent International Energy Agency study found around 76 million tons of methane are emitted every year from global oil and gas operations. That is the equivalent to more than Australia's entire natural gas production, the IEA's executive director, Fatih Birol told an industry gathering last month.

The companies set of principles was developed in collaboration with the IEA, the United Nations and other international organizations focused on energy and climate change.

Exxon's decision to join the group leaves Chevron Corp. as the only major U.S. oil company that has yet to join the initiative. Both the U.S. oil companies have lagged behind their European peers on the issue of climate and Exxon hasn't participated in previous similar efforts to build an industry voice on such subjects.

Over the years, activists have pointed to the lack of participation by Exxon and Chevron in the group climate effort as evidence of a divide between the biggest U.S. and European oil companies on the issue.

Still, under pressure from investors over the past year, they have both undergone an evolution in the way they address climate change publicly. Chevron has provided more information about how it is looking at climate risks and made strides in its own methane reduction efforts. "It is in Chevron's business interest to minimize fugitive methane and to maximize the volume of natural gas that we can commercialize," the company said in an emailed statement.

Exxon Chief Executive Darren Woods has urged President Donald Trump not to withdraw from the Paris climate accord. The company has also initiated research efforts to test the viability of capturing emissions from natural gas power plant operations, as well as continued to study ways to convert algae into fuel.

Write to Sarah Kent at sarah.kent@wsj.com and Bradley Olson at Bradley.Olson@wsj.com

Credit: By Sarah Kent and Bradley Olson

Subject: Emissions; Energy industry; Climate change; Natural gas

Location: Australia

People: Birol, Fatih

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2017

Publication date: Nov 22, 2017

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1966941046

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Copyright: (c) 2017 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2017-11-24

Database: The Wall Street Journal

California Municipalities' Debt Disclosures Contrast With Climate Warnings; Exxon Mobil cites investor documents in legal battle over risks

Author: Scurria, Andrew

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Jan 2018: n/a.

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California communities demanding oil companies protect them from rising sea levels weren't as sure about their vulnerability to climate change when they sold debt to investors, according to court filings and bond documents.

Seven local governments in California are suing Exxon Mobil Corp. and other major oil producers for court orders forcing those companies to cover the costs of sea walls and other infrastructure projects meant to fortify low-lying areas.

Now Exxon, one of the defendants, is launching a new counterattack by highlighting past bond disclosures in which its government critics suggested they couldn't predict whether and when sea levels would rise. The company filed court papers in Texas on Monday seeking to force government officials to answer questions under oath about those statements.

The underlying lawsuits are part of an aggressive strategy to hold fossil-fuel companies responsible for climate change costs that the plaintiffs estimate could run to billions of dollars. Local officials are arguing that Exxon, BP PLC and other companies knew or should have known about the potential impacts of burning oil and gas but instead tried to sow public doubt about the science behind global warming.

The companies dispute those allegations, casting the lawsuits as an abusive campaign by California law-enforcement officials to target political opponents through the legal system and stifle debate on climate change. Scientists have linked rising sea levels to fossil-fuel emissions and warming global temperatures.

City attorneys for Oakland, San Francisco, Imperial Beach and Santa Cruz didn't immediately respond to requests for comment. Attorneys for San Mateo County, Santa Cruz County and Marin County also didn't respond.

The legal battle is intensifying while awareness grows among investors about the potential credit risk to U.S. municipalities from future changes in world-wide temperatures. In November, Moody's Investors Service flagged environmental disruptions as a "growing negative credit factor" for coastal municipalities and said it would adjust its ratings methodology to take climate change into account.

Moody's didn't issue any credit downgrades but warned local governments to start dealing with climate risks or else possibly lose their access to low-cost financing.

Exxon's Monday filing in Tarrant County, Texas, laid out what it said was a disconnect between the claims in those lawsuits and what the municipalities told their bond investors about their exposure to climate risks.

San Francisco's lawsuit said it faced "imminent risk of catastrophic storm surge flooding," while a general obligation bond offering last year said the city "is unable to predict whether sea-level or rise or other impacts of climate change...will occur."

Santa Cruz County said in its complaint it was experiencing more frequent and extreme droughts, precipitation events, heat waves and wildfires, and faced a 98% chance of a "devastating" three-foot flood by 2050. Yet a bond offering last year mentioned only "unpredictable climatic conditions, such as flood, droughts and destructive storms" as a risk factor.

"Each of the municipalities warned that imminent sea level rise presented a substantial threat to its jurisdiction and laid blame for this purported injury at the feet of energy companies," Exxon said. "Notwithstanding their claims of imminent, allegedly near-certain harm, none of the municipalities disclosed to investors such risks in their respective bond offerings."

The lawsuits against Exxon, BP, Chevron Corp., ConocoPhillips and Royal Dutch Shell PLC allege the companies are a "public nuisance" and ask courts to force them to create a fund for local governments to pay for climate change-related infrastructure.

The lawsuits have drawn comparisons to U.S. states' legal campaign against tobacco manufacturers in the 1990s, which netted multibillion-dollar settlements to offset the public costs of smoking-related disease.

In 2015, New York Attorney General Eric Schneiderman began an investigation into Exxon Mobil that was joined by Massachusetts Attorney General Maura Healey. Mr. Schneiderman, a Democrat, has alleged that Exxon misled investors about how it accounts for the impact of climate change on its business.

Exxon has alleged the investigation is part of a conspiracy by activists and oil antagonists to smear the company. A number of Republican lawmakers and attorneys general have sought to join Exxon's effort to fight the probe and have also sought to investigate Mr. Schneiderman.

Alejandro Lazo and Bradley Olson contributed to this article.

Write to Andrew Scurria at Andrew.Scurria@wsj.com

Related Coverage

* Two California Cities Sue Oil Majors Over Climate Change (Sept. 20, 2017)

* California Governor Brown Challenges Trump on Climate Change (Dec. 14, 2016)

* Exxon Fires Back at Climate-Change Probe (April 13, 2016)

Credit: By Andrew Scurria

Subject: Costs; Floods; Energy industry; Climate change; Sea level

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Jan 9, 2018

Section: Pro Bankruptcy

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1985666168

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Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-01-23

Database: The Wall Street Journal

Hey Big Spender: Samsung's $44 Billion Splurge Beats Exxon and Shell Combined; The tech giant spent more on capital expenditures last year than any other publicly traded company

Author: Martin, Timothy W

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 Jan 2018: n/a.

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SEOUL--Samsung Electronics Co. spent more on capital expenditures last year than any other publicly traded company, highlighting in dramatic fashion how technology and telecommunications firms are driving an uptick in manufacturing investment.

The South Korean tech giant spent $44 billion in 2017, nearly doubling its investment in new or existing facilities making semiconductors, displays and other products, according to S&P Global Market Intelligence estimates that put Samsung atop the global ranking for the first time. That sum is more than what Royal Dutch Shell PLC and Exxon Mobil Corp.--traditionally two of the largest investors--spent combined last year and about 50% more than the next biggest tally, PetroChina Co.'s $29 billion.

Samsung's central role in the tech supply chain was put in focus Tuesday when the company estimated operating profits of 15.1 trillion won ($14.1 billion) for its fourth quarter. That would mark the third straight quarter Samsung smashed its earnings record, even as its de facto leader Lee Jae-yong, is in prison after a corruption trial that gripped South Korea .

Samsung's big bets underscore a rebound in companies' willingness to invest in boosting production in the future, as 2017 brought an end to four straight years of global declines, according to Goldman Sachs. Technology companies are projected to increase investment the most.

Driving their spending is the proliferation of internet-connected gadgets and the need for skilled manufacture of dozens of microsize components. The advance toward artificial intelligence calls for massive data-server farms that require immense computing power and memory chips.

"Typically we think bigger is costlier," said Henrich Greve, an entrepreneurship professor at INSEAD in Singapore. "But with technology, there are so many things that are very, very small but also quite costly."

That has put Samsung, the world's largest smartphone maker, in a position to cash in. The company is also a supplier to the likes of Apple Inc., Dell Technologies Inc., HP Inc. and Sony Corp., whose smartphones, laptops and televisions rely on Samsung-made parts.

"Samsung has no choice but to invest like this," said Avril Wu, research director at DRAMeXchange, which tracks semiconductor sales and prices. "They still have to invest in order to secure more market share."

But such capital expenditures may not translate into job creation, in part because high-tech factory jobs are largely automated and much of the telecom investments don't require much labor after network towers are set up, economists said.

U.S. technology and telecom firms are some of the biggest spenders on capital improvements. U.S. telecom giants AT&T Inc. and Verizon Communications Inc., along with Apple, Google parent Alphabet Inc. and Intel rank among the 25 biggest investors, according to the S&P Global Market Intelligence estimates, which are based on company filings and analysts' calculations.

The pickup in investment is tied to a dramatic rise in the number of internet-connected devices--from smartphones to wearables--which is expected to hit 73 billion by 2025, according to Rajiv Biswas, chief economist in Asia-Pacific for market researcher IHS Markit.

Traditional industries are also modernizing operations, from the use of unmanned tractors to employing highly automated "smart" factories.

After four straight years of declines, global capital expenditures grew in 2017 and are on track for annual growth of 3.2% over the next three years, according to a Goldman report in October. Tech is expected to lead with a yearly increase of more than 10% from 2017 to 2020, Goldman said.

Companies' optimism is also fueled by economic growth in Europe, U.S. tax and regulatory changes that could spur wage and job gains, and a Chinese infrastructure initiative that promises strong commodity demand, said Sree Ramaswamy, a partner at the McKinsey Global Institute.

Samsung's $44 billion in capital spending will largely go toward boosting production of flexible smartphone displays and memory chips that store photos on smartphones and give devices their multi-tasking speed.

A recent shortage of those types of memory chips has caused prices to rise dramatically, and that has given Samsung enormous clout in the global tech supply chain--a position it must not abuse, experts say.

"Samsung is behaving like a central bank," said CW Chung, a Seoul-based analyst at Nomura. "They have to avoid inflation but also deflation. Samsung wants to avoid too much of a shortage or an oversupply."

A Samsung spokesman declined to comment beyond what the company has publicly disclosed.

Over the past two years, the prices of two main types of memory chips--one for content storage, known as NAND, and another enabling speedy multitasking, known as DRAM--have both more than doubled, according to DRAMeXchange. Samsung controls nearly half of the DRAM market and more than one-third for NAND.

But industry analysts are mixed on how long Samsung's memory-chip magic will last. Morgan Stanley downgraded Samsung in November, expecting some chip prices to slide this year.

Samsung in October said about two-thirds of its 2017 capital expenditure was earmarked for semiconductors and roughly a third for displays, but beyond that has offered few specifics.

The company said it would spend 14.4 trillion won ($13.5 billion) on a new NAND factory in the coastal city of Pyeongtaek by 2021, while investing 6 trillion won in a new semiconductor production line in Hwaseong. But it didn't elaborate on timing or product. Samsung is also adding a production line to its NAND plant in Xi'an, China, though it has yet to provide any details.

After ranking No. 1 globally in expenditures for the first time last year, the company will spend close to $110 billion over the next three years, according to S&P Global Market Intelligence.

Write to Timothy W. Martin at timothy.martin@wsj.com

Credit: By Timothy W. Martin

Subject: Corporate profiles; Manufacturing; Automation; Factories; Semiconductors; Smartphones

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Jan 9, 2018

Section: Tech

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1985841703

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Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-01-10

Database: The Wall Street Journal

Exxon to Spend $50 Billion in U.S. Over Next Five Years; Company evaluating lower tax rate on projects in the planning stages to expand Gulf Coast facilities, CEO says

Author: Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Jan 2018: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

Exxon Mobil Corp. said Monday it plans to spend $50 billion to expand its business in the U.S. in the next five years, investments that were "enhanced" by the American tax overhaul.

The Texas-based energy giant didn't specify whether the investment plan represented an increase in spending as a result of the tax rewrite passed by Congress and signed into law by President Donald Trump late last year, or how much of the $50 billion was tied to prospects Exxon was considering before the tax changes.

Exxon Chief Executive Darren Woods made the announcement in a blog post, adding that the company was still studying whether the tax overhaul made additional investment more economically viable.

"We're actively evaluating the impact of the lower tax rate on the economics of several other projects currently in the planning stages to further expand our facilities along the Gulf Coast," Mr. Woods said in the post .

He singled out drilling operations in West Texas and New Mexico as areas where Exxon will be investing billions to boost production. The company has been planning to step up its spending levels in that region for years.

Exxon is well known for meticulously planning its build-out of oil and gas projects all over the world, evaluating multibillion-dollar opportunities over many years before making a final decision.

Last year, Exxon said it would spend between $23 billion and $27 billion a year from 2018 to 2020. The announcement Monday equates to about $10 billion a year in the U.S. for five years, which would be less than half of Exxon's previously announced total spending through 2020.

It may be years before the full impact of the new law is apparent on Exxon's strategic planning, but Mr. Woods made clear the company sees the tax cuts in extremely positive terms.

"Good to see sound policy laying the groundwork for America's future economic success," Mr. Woods said.

Write to Bradley Olson at Bradley.Olson@wsj.com

Related Coverage

* The Tax Law, Just One Month Old, Is Roaring Through U.S. Companies (Jan. 28)

* Big Oil Investors Rethink Their Bets (Jan. 3)

* Oil Giants' Profits Soar, but Investors Aren't Sold (Oct. 27, 2017)

Credit: By Bradley Olson

Subject: Tax rates; Planning

Location: Texas New Mexico United States--US West Texas

People: Trump, Donald J Woods, Darren

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Congress; NAICS: 921120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Jan 29, 2018

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1992064530

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1992064530?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-01-29

Database: The Wall Street Journal

Exxon to Spend $50 Billion in U.S. Over Next Five Years; Energy company looks to increase production in the Permian basin in western Texas and New Mexico

Author: Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Jan 2018: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

Exxon Mobil Corp. said Monday it plans to spend $50 billion to expand its business in the U.S. in the next five years, investments that were "enhanced" by the American tax overhaul.

The Texas-based energy giant didn't specify whether the investment plan represented an increase in spending as a result of the tax rewrite passed by Congress and signed into law by President Donald Trump late last year, or how much of the $50 billion was tied to prospects Exxon was considering before the tax changes.

Exxon Chief Executive Darren Woods made the announcement in a blog post, adding that the company was still studying whether the tax overhaul made additional investment more economically viable.

"We're actively evaluating the impact of the lower tax rate on the economics of several other projects currently in the planning stages to further expand our facilities along the Gulf Coast," Mr. Woods said in the post .

He singled out drilling operations in West Texas and New Mexico as areas where Exxon will be investing billions to boost production. The company has been planning to step up its spending levels in that region for years.

Last year, Exxon spent almost $6 billion to vastly expand its holdings in that area, and the company promised to more than triple its production in the Permian basin and North Dakota through 2025.

Exxon is well known for meticulously planning its build-out of oil and gas projects all over the world, evaluating multibillion-dollar opportunities over many years before making a final decision.

Last year, Exxon said it would spend between $23 billion and $27 billion a year globally from 2018 to 2020. The announcement Monday equates to about $10 billion a year in the U.S. for five years. In 2016 and 2017, Exxon spent about $6 billion a year on U.S. investments, according to the company and analyst estimates.

The $50 billion figure disclosed Monday includes about $15 billion in previously announced projects, such as an initiative to invest $20 billion over a decade along the U.S. Gulf Coast, according to Exxon spokesman Scott Silvestri.

It may be years before the full impact of the new tax law is apparent on Exxon's strategic planning, but Mr. Woods made clear the company sees the tax cuts in extremely positive terms.

"Good to see sound policy laying the groundwork for America's future economic success," Mr. Woods said.

Write to Bradley Olson at Bradley.Olson@wsj.com

Related Coverage

* The Tax Law, Just One Month Old, Is Roaring Through U.S. Companies (Jan. 28)

* Big Oil Investors Rethink Their Bets (Jan. 3)

* Oil Giants' Profits Soar, but Investors Aren't Sold (Oct. 27, 2017)

Credit: By Bradley Olson

Subject: Tax rates; Planning

Location: North Dakota Texas New Mexico United States--US West Texas

People: Trump, Donald J Woods, Darren

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Congress; NAICS: 921120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Jan 30, 2018

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1992125072

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1992125072?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-01-30

Database: The Wall Street Journal

Exxon, Chevron Fall Short Despite Rising Prices; America's biggest oil companies post quarterly profits that miss expectations

Author: Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Feb 2018: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

America's biggest oil companies surprised investors with quarterly profits that missed expectations stoked by rising crude prices.

Exxon Mobil Corp. and Chevron Corp. on Friday reported quarterly net income of $8.4 billion and $3.1 billion, respectively. But most of the gains stemmed from one-time benefits related to the tax changes approved by Congress and signed into law by President Donald Trump late last year.

Exxon said its production fell by about 130,000 barrels a day and its U.S. drilling business lost money for the 12th consecutive quarter, showing continued struggles in an area where the company is making a vast expansion. Exxon also reported a $1.3 billion write-down on its natural gas properties, the second year in a row it has had to recognize the declining value of certain prospects, something it rarely did before oil prices crashed in 2014.

Chevron was hit by falling profits in its California refining business, as well as charges related to hurricanes Harvey and Nate. Chief Executive Michael Wirth, who took over this month for predecessor John Watson, said reducing costs and focusing on returns will be his priority.

"We are a cyclical commodity business," he said in a call with analysts. "Capital discipline always matters. Costs always matter."

Exxon shares fell more than 5%, their stock's biggest one-day percentage drop in five years.

"The U.S. results were disappointing," said Brian Youngberg, an analyst with Edward Jones in St. Louis. "Production declines are a continuing challenge for this company. They need to jump-start the growth for investors to get excited again."

Chevron shares declined 3.4%.

The Exxon and Chevron results were in contrast to the companies' big oil counterparts, whose executives have said that rising prices for oil, currently around $65 a barrel, have led them to expect 2018 to be the best year since crude sold for more than $100 a barrel.

Royal Dutch Shell PLC saw profits triple, nearing levels last seen before oil prices crashed in 2014. ConocoPhillips said net income was $1.6 billion, the highest quarterly profit in three years.

Oil and gas investors in the last year have begun to revolt against companies that have failed to perform for shareholders. Oil prices have surged by about 35% in the last six months. Exxon's shares have risen just 5%, and Chevron's 9%.

U.S. production in November came close to surpassing an all-time monthly record set in 1970 of more than 10 million barrels a day. The U.S. may soon surpass Saudi Arabia and Russia, according to the International Energy Agency.

Even as the biggest U.S. companies fell short of expectations, the sector is likely to generate more cash in 2018 than it did during some period of the boom era when oil sold for more than $100 a barrel, according to Simmons & Co. The amount of cash in excess of new spending and dividends could approach $40 billion in 2018, the most in more than a decade, according to the analysis.

Healthy global economic growth has created solid demand for oil, pushing up profits all over the world for refining oil into gasoline and other products. In some areas, those margins are set to surge by as much as 15% in 2018, according to Evercore ISI, above levels that were already near records.

Exxon reported a more than $8 billion profit in the last three months of 2017 as it recorded a $5.94 billion benefit from the new tax law. That was up from earnings for the same quarter a year before of $1.68 billion, or 41 cents a share.

On an adjusted basis, which omits the bump from the new tax law and impairments, earnings fell 2.2% to $3.73 billion, or 88 cents a share. Analysts polled by Thomson Reuters were expecting adjusted earnings of $1.04 a share.

Exxon Chief Executive Darren Woods plans to triple production in the red-hot Permian basin of West Texas and New Mexico and spend $50 billion in the U.S. over the next five years , a strategy that was touted by Mr. Trump in his state of the union speech.

Chevron earnings rose more than sevenfold from a year ago, but primarily because of the tax benefit. Net income rose to $3.11 billion, including a $2.02 billion benefit related to tax legislation.

In contrast to Exxon, Chevron's oil and gas production rose by almost 3% to 2.7 million barrels a day as new projects in Australia increased output and the company ramped up in west Texas. Chevron also boosted its quarterly dividend by 4% and signaled that more cash returns to shareholders could be on the way if oil prices remain near current levels.

Allison Prang and Sarah Kent contributed to this article.

Write to Bradley Olson at Bradley.Olson@wsj.com

More

* Heard on the Street: No More Tigers in Exxon's Tank

Credit: By Bradley Olson

Subject: Profits; Stock prices; Earnings per share

Location: United States--US

People: Trump, Donald J Woods, Darren

Company / organization: Name: Thomson Reuters; NAICS: 511110, 511140; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Feb 2, 2018

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1993392865

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1993392865?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-02-03

Database: The Wall Street Journal

No More Tigers in Exxon's Tank; Investors are unimpressed by quarterly gains; shares slide as much as 6% in early trade

Author: Jakab, Spencer

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]02 Feb 2018: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

A decade or so ago, the numbers coming out of Exxon Mobil were so good as to be slightly embarrassing. In 2008, as the world entered a deep recession, the energy giant made profits of more than $5 million an hour.

But Friday's fourth-quarter gains--a 400% rise compared with a year earlier--only looked gaudy because of one-off items, most of them accounting gains from corporate tax cuts. On an adjusted basis, earnings fell slightly . Investors were clearly unimpressed, sending the shares down by as much as 6% in early trading.

While Exxon's refining, marketing and chemical businesses continued to do well, its bread and butter, pumping oil and natural gas out of the ground, didn't. Production in oil-equivalent terms fell by 3% year-over-year and by 1% after adjusting for divestitures.

Making sure to get in political Brownie points with the energy-friendly Trump administration, the company touted the benefits of lower taxes and its commitment to invest $50 billion domestically over the next five years. Much of that, both upstream and downstream, is owed to the shale boom rather than incentives, though.

Prodigious production of oil, natural gas and associated liquids from the U.S. shale patch, where Exxon has doubled-down, has spurred high levels of spending for infrastructure to capture and exploit that bounty. Despite the fact that the U.S. is about to break its record for oil production and is now nearly on par with Saudi Arabia, the value of large U.S. energy companies hasn't expanded. Exxon Mobil's market value is almost the same as it was a decade ago while the energy sector has shriveled from more than 15% of the S&P 500 to just 6% today.

The main reason is profitability. As the focus turns from complicated megaprojects, where high costs and high risks led to big profits, to smaller, less risky operations that can also be done by smaller companies , returns have suffered. Exxon's return on invested capital once ranged between 20% and 35%. It now hovers in the mid single-digits. For 2017 overall, a decent year of rising prices for crude, Exxon posted a loss of $459 million in its U.S. upstream business excluding one-off items such as tax benefits, narrowing that from a loss of nearly $2 billion in 2016.

As investment in the shale patch and some international bright spots such as Guyana are set to boost output--oil equivalent production is seen rising from 3.985 million barrels a day in 2017 to 4.34 million by 2021, according to analyst consensus on FactSet--investors will be focusing on returns as much as volume. They may not like what they see.

Write to Spencer Jakab at spencer.jakab@wsj.com

Credit: By Spencer Jakab

Subject: Petroleum production; Profits; Losses; Energy industry

Location: Guyana United States--US Saudi Arabia

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Feb 2, 2018

column: Heard on the Street

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1993411841

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/1993411841?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced wit h permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-02-05

Database: The Wall Street Journal

Exxon, Chevron Come Up Short --- Two biggest U.S. oil producers disappoint investors, despite big gains tied to tax law

Author: Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]03 Feb 2018: B.1.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

America's biggest oil companies surprised Wall Street with quarterly profits that missed expectations stoked by rising crude prices.

Exxon Mobil Corp. and Chevron Corp. on Friday reported fourth-quarter net income of $8.4 billion and $3.1 billion, respectively. But most of the gains stemmed from one-time benefits related to the tax changes approved by Congress and signed into law by President Donald Trump late last year.

Exxon said its production fell by about 130,000 barrels a day and its U.S. drilling business lost money for the 12th consecutive quarter, showing continued struggles in an area where the company is undertaking a vast expansion. Exxon also reported a $1.3 billion write-down on its natural gas properties, the second year in a row it has had to recognize the declining value of certain prospects, something it rarely did before oil prices crashed in 2014.

Chevron was hit by falling profits in its California refining business -- which the company deemed a temporary challenge -- as well as by charges related to hurricanes Harvey and Nate.

Chief Executive Michael Wirth, who took over this month for predecessor John Watson, said reducing costs and focusing on returns will be his priority.

"We are a cyclical commodity business," he said in a call with analysts. "Capital discipline always matters. Costs always matter."

Exxon shares fell 5.1%, the stock's biggest one-day percentage drop in five years.

"The U.S. results were disappointing," said Brian Youngberg, an analyst with Edward Jones in St. Louis. "Production declines are a continuing challenge for this company. They need to jump-start the growth for investors to get excited again."

Chevron shares declined 5.6%, their biggest drop since 2011.

The two companies' results were in contrast to those of other big producers, whose executives have said that rising prices for oil, currently around $65 a barrel, have led them to expect 2018 to be the best year since crude sold for more than $100 a barrel.

Royal Dutch Shell PLC saw its fourth-quarter profit triple, nearing levels last seen before oil prices crashed in 2014. ConocoPhillips earned $1.6 billion, its highest quarterly profit in three years.

Oil and gas investors in the last year have begun to revolt against companies that have failed to perform for shareholders. Oil prices have surged by about 35% in the last six months, while Exxon's shares rose just 5% and Chevron's by 9%.

U.S. production in November came close to surpassing an all-time monthly record set in 1970 of more than 10 million barrels a day. The country may soon surpass Saudi Arabia and Russia, according to the International Energy Agency.

Even as the biggest U.S. oil producers fell short of expectations, the sector is likely to generate more cash in 2018 than it did during some periods of the boom era when oil sold for more than $100 a barrel, according to Simmons & Co.

The amount of cash in excess of new spending and dividends could approach $40 billion in 2018, the most in more than a decade, according to the analysis.

A robust global economy has created solid demand for oil, pushing up profits all over the world for refining oil into gasoline and other products. In some areas, those margins are set to surge by as much as 15% in 2018, according to Evercore ISI, above levels that were already near records.

Exxon's $8.4 billion profit for the last three months of 2017 included a $5.94 billion benefit from the new tax law. For the year-earlier period, the firm had a profit of $1.68 billion.

On an adjusted basis, which omits the bump from the new tax law and impairments, earnings fell 2.2% to $3.73 billion, or 88 cents a share. Analysts polled by Thomson Reuters were expecting adjusted earnings of $1.04 a share.

Exxon Chief Executive Darren Woods plans to triple production in the red-hot Permian basin of West Texas and New Mexico and spend $50 billion in the U.S. over the next five years, a strategy that was touted by Mr. Trump in his state of the union speech.

Chevron earnings rose more than sevenfold from a year earlier to $3.11 billion, with the bulk of the gain coming from a $2.02 billion benefit related to the U.S. tax legislation.

In contrast to Exxon, Chevron's oil and gas production rose by almost 3% to 2.7 million barrels a day as new projects in Australia increased output and the company ramped up in West Texas. Chevron also boosted its quarterly dividend by 4% and signaled that more cash returns to shareholders could be on the way if oil prices remain near current levels.

---

Allison Prang and Sarah Kent contributed to this article.

Credit: By Bradley Olson

Subject: Corporate profits; Stockholders; Investments; Earnings; Crude oil prices; Supply & demand; Natural gas

Location: New Mexico Russia United States--US Saudi Arabia Australia California West Texas

People: Trump, Donald J Woods, Darren

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Thomson Reuters; NAICS: 511110, 511140; Name: ConocoPhillips Co; NAICS: 211111; Name: Chevron Corp; NAICS: 211111, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Congress; NAICS: 921120; Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: Edward D Jones & Co; NAICS: 523120

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2018

Publication date: Feb 3, 2018

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 1993553932

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu /docview/1993553932?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-02-04

Database: The Wall Street Journal

U.S. Sanctions, Low Oil Prices Doomed Exxon's Russian Projects; Withdrawal from joint venture brokered by Tillerson for now marks end of energy giant's hopes of drilling in Arctic ocean oil fields

Author: Gold, Russell

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]01 Mar 2018: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

U.S. sanctions against Russia prevented Exxon Mobil Corp. from pursuing ambitious plans to explore for oil north of Siberia. But the final blow, some experts said, may have been delivered by lower oil prices.

The Texas oil giant said in a regulatory filing late Wednesday that it would walk away from the joint venture with state-controlled PAO Rosneft to seek oil in the ice-choked waters of the Kara Sea, a hard-fought deal signed in 2012 by the company's former chief executive, Rex Tillerson, now U.S. secretary of state.

Mr. Tillerson touted the agreement as a breakthrough giving Exxon access to one of the world's great unexplored oil-and-gas basins. The company reportedly spent about $700 million to drill the first well, likely making it the most expensive ever. It struck oil, according to Rosneft, but further exploration was halted because of U.S. sanctions imposed by the Obama administration following Russia's intervention in Ukraine in 2014.

Exxon unsuccessfully sought waivers that would allow it to proceed in some areas in Russia--a campaign that formally ended with President Donald Trump declining to waive sanctions for the company's Rosneft ventures last year. The U.S. also added new sanctions on Moscow last year for its alleged interference in the 2016 presidential election.

But in the meantime, something else happened: Oil prices plunged, and the global chase for new supplies changed. The deal was struck when oil prices topped $90 a barrel and prospects for them remaining high seemed likely. Oil is now trading at just over $60 a barrel, and many companies, including Exxon, are pursuing shorter-cycle projects such as drilling in the Permian Basin of Texas and New Mexico that can deliver returns more quickly.

"A high-risk Arctic project that maybe looks good at $100 oil does not look like anything anyone would touch at $60," said Edward Chow, a senior fellow at the Center for Strategic and International Studies in Washington, D.C. "I think that is a fundamental to the Exxon decision."

Exxon declined to comment on the reasons for its decision. The company said it would formally begin to withdraw from the Rosneft joint ventures this year, taking a $200 million loss after taxes.

Rosneft said in a statement carried by Russian news agencies that it would support the return of Exxon to the projects in the future if it were legally possible.

Drilling an offshore well in a remote Arctic region is technically and logistically complex. Every piece of equipment needs to be brought in from hundreds of miles away, through inhospitable weather.

Royal Dutch Shell PLC ended a $7 billion exploration effort in the seas north of Alaska in 2015 after prices fell and one of its drilling rigs ran aground in foul weather.

Exxon CEO Darren Woods, who took over after Mr. Tillerson resigned to become secretary of state, has steered the company in a new direction in a bid to reverse slumping oil output and financial struggles. He plans to triple production in the Permian Basin and has touted vast new discoveries off the coast of Guyana in South America.

Exxon is still heavily invested in Russia via an oil project off the Pacific island of Sakhalin that predated the U.S. sanctions. In 2016, the company produced 234,000 barrels a day of oil from Russia and the Caspian Sea region, about 10% of its output.

But given the state of U.S.-Russia relations, it was unlikely work on the other deal that Mr. Tillerson brokered would recommence anytime soon. The joint venture between Exxon and Rosneft included exploration in the Kara Sea, as well as other collaborative efforts in Russia and the U.S. Exxon funded the exploration work entirely, earning a 33.3% stake in any discoveries.

"It's a combination of financial decision making but also recognizing that the risk-reward balance is out of whack in Russia right now," said Ken Medlock, director of the Center for Energy Studies at Rice University in Houston. "If we were in a $120 oil world, I highly doubt this decision would have been made."

A former U.S. official who worked on the issue said there was little interest among policymakers to allow a project like Exxon's venture in Russia to proceed. Current and former officials also said Mr. Tillerson, after his appointment as secretary of state, had been careful to recuse himself from Exxon-related matters, including the Russia deal.

"I'm not surprised they pulled out," the former official said of Exxon. "There are legitimate economic reasons they would want to pull out."

If oil prices rise and sanctions are removed there is nothing stopping Exxon from rekindling its relationship with Rosneft. Experts say it is unlikely Rosneft will be able to find another company able to step into Exxon's role--either due to European sanctions or a lack of technical capabilities to drill offshore wells.

Thus, Exxon's decision, and the sanctions, will slow the Kremlin's efforts to unlock significant new resources that could help Russia maintain its position as the world's largest crude producer.

Russia's federal budget relies on oil and gas sales for around one-third of its revenues. Without technology from partners such as Exxon, Russia will struggle to access those resources, analysts say, although it has plenty of other onshore fields to maintain production.

James Marson and Michael Amon contributed to this article.

Write to Russell Gold at russell.gold@wsj.com

Credit: By Russell Gold

Subject: Oil fields; Sanctions; Drilling; Joint ventures

Location: Russia Arctic region United States--US Crimea Ukraine

People: Trump, Donald J Putin, Vladimir Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Department of the Treasury; NAICS: 921130; Name: OAO Rosneft; NAICS: 324110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Mar 1, 2018

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2009146411

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2009146411?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-03-02

Database: The Wall Street Journal

Business News: Sanctions, Price of Oil Doom Exxon's Arctic Gambit

Author: Gold, Russell

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]02 Mar 2018: B.5.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

U.S. sanctions against Russia prevented Exxon Mobil Corp. from pursuing ambitious plans to explore for oil north of Siberia. But the final blow, some experts said, may have been delivered by lower oil prices.

The Texas oil giant said in a regulatory filing late Wednesday that it would walk away from the joint venture with state-controlled PAO Rosneft to seek oil in the ice-choked waters of the Kara Sea, a hard-fought deal signed in 2012 by the company's former chief executive, Rex Tillerson, now U.S. secretary of state.

Mr. Tillerson touted the agreement as a breakthrough giving Exxon access to one of the world's great unexplored oil-and-gas basins. The company reportedly spent about $700 million to drill the first well, likely making it the most expensive ever. It struck oil, according to Rosneft, but further exploration was halted because of U.S. sanctions imposed by the Obama administration following Russia's intervention in Ukraine in 2014.

Exxon unsuccessfully sought waivers that would allow it to proceed in some areas in Russia -- a campaign that formally ended with President Donald Trump declining to waive sanctions for the company's Rosneft ventures last year.

Meanwhile, something else happened: Oil prices plunged, and the global chase for new supplies changed. The deal was struck when oil prices topped $90 a barrel and prospects for them remaining high seemed likely. Oil is now trading at just over $60 a barrel, and many companies, including Exxon, are pursuing shorter-cycle projects such as drilling in the Permian Basin of Texas and New Mexico.

"A high-risk Arctic project that maybe looks good at $100 oil does not look like anything anyone would touch at $60," said Edward Chow, a senior fellow at the Center for Strategic and International Studies in Washington, D.C. "I think that is a fundamental to the Exxon decision."

Exxon declined to comment on the reasons for its decision. The company said it would formally begin to withdraw from the Rosneft joint ventures this year, taking a $200 million loss after taxes.

Rosneft said in a statement carried by Russian news agencies that it would support the return of Exxon to the projects if it were legally possible.

Drilling an offshore well in a remote Arctic region is technically and logistically complex. Royal Dutch Shell PLC ended a $7 billion exploration effort in the seas north of Alaska in 2015 after prices fell and one of its drilling rigs ran aground in foul weather.

Exxon CEO Darren Woods, who took over after Mr. Tillerson resigned to become secretary of state, has steered the company in a new direction in a bid to reverse slumping oil output and financial struggles. He plans to triple production in the Permian Basin and has touted vast new discoveries off the coast of Guyana in South America.

Exxon is still heavily invested in Russia via an oil project off the Pacific island of Sakhalin that predated the U.S. sanctions.

---

James Marson and Michael Amon contributed to this article.

Credit: By Russell Gold

Subject: Prices; Sanctions; Drilling

Location: Texas Russia New Mexico United States--US Arctic region Alaska Washington DC South America Permian Basin Siberia Guyana Ukraine Kara Sea

People: Trump, Donald J Woods, Darren Tillerson, Rex W

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: OAO Rosneft; NAICS: 324110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.5

Publication year: 2018

Publication date: Mar 2, 2018

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2009470693

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2009470693?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-03-02

Database: The Wall Street Journal

'Rex, Eat the Salad': Inside the Awkward Relationship Between Rex Tillerson and Donald Trump; Cabinet post was a sharp change for a former Exxon Mobil CEO who was used to calling the shots

Author: Bender, Michael C; Schwartz, Feli cia

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Mar 2018: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

WASHINGTON--In a private room in China's Great Hall of the People in November, Secretary of State Rex Tillerson sat with President Donald Trump and other U.S. officials as their hosts delivered plates of wilted Caesar salad.

Mr. Trump, in the midst of a five-country tour of Asia, grew concerned the untouched greens would offend the Chinese, according to people familiar with the matter. So he ordered Mr. Tillerson to start. "Rex," he said, "eat the salad."

Mr. Tillerson laughed off the remark, but the moment illustrated the at-times awkward relationship between the secretary of state and his boss that came to an abrupt end Tuesday when Mr. Trump announced in a tweet that he had replaced him .

Initially, Mr. Trump brimmed with enthusiasm about the arrival in his cabinet of a seasoned executive, the chairman and chief executive of oil giant Exxon Mobil Corp.

While he had first considered other candidates--former New York Mayor Rudy Giuliani and former Massachusetts Gov. Mitt Romney--the new president was sold on Mr. Tillerson by former Defense Secretary Robert Gates, former Secretary of State Condoleezza Rice, and Harold Hamm, an oil billionaire and GOP donor, according to people familiar with the matter.

"Man, when there was a big find in a country, nobody had a chance when Rex went in to get it--Rex would go in, and it would be over," Mr. Hamm told the incoming president, said one person familiar with the conversation.

"That's what we want!" Mr. Trump replied.

Mr. Tillerson's appointment brought a globe-trotting executive to Washington to work for the first businessman president. No one before Mr. Trump had won the White House without previous government or military experience.

But soon Mr. Tillerson found himself in an awkward place: roiling a massive diplomatic bureaucracy with a proposal to slash its $55-billion budget by almost 40%, yet distant from the White House he reported in to.

A spokesman for Mr. Tillerson declined to comment.

Early in the administration, Mr. Tillerson tried to bridge Foggy Bottom and Pennsylvania Avenue by seeking to hold occasional meetings of the president's National Security Council at the State Department, according to a person familiar with the discussion. The request was rejected. And inside the White House, the former chief executive found himself crossing a trio of staffers who hadn't yet been born when he started his climb at Exxon in 1975.

Mr. Tillerson, 65 years old, clashed on immigration policy in front of the president with Stephen Miller, the president's 32-year-old policy adviser. After one correction from Mr. Miller, Mr. Tillerson barked so aggressively at the West Wing aide that the president suggested his secretary of state might have crossed the line, according to a person familiar with the exchange.

Johnny DeStefano, the 38-year-old in charge of White House personnel, helped scuttle several of Mr. Tillerson's appointments, according to officials. And control over major diplomatic priorities was always muddled, with Jared Kushner, the president's 37-year-old son-in-law and senior adviser, taking the lead on Middle East peace talks.

A promise from Mr. Trump during the transition that Mr. Tillerson could pick his own staff almost immediately fell through. Nor was Mr. Tillerson a central part of the decision-making process on the White House's original proposed travel ban or on expanding the so-called "Mexico City policy," which bars foreign organizations that receive U.S. aid from providing abortion services, officials said.

It was all a sharp change for an executive who was used to calling the shots at Exxon.

"As chief executive, you're in charge. As an agency head, you're sort of in charge," said Steven Goldstein, a former executive at TIAA who was undersecretary of state for public diplomacy and public affairs until he, too, was ousted Tuesday.

The secretary has also bewildered White House aides with his unwillingness to engage the media.

"I don't need to talk just to be talking, OK? I'm not a media hog," Mr. Tillerson said in an October interview with The Wall Street Journal, when asked why he had given relatively few interviews during his first year in office. "I don't need facial recognition. I don't need voice recognition. I don't need a lot of quotes. So, for me, it's when it's useful to talk, let's talk."

Rumors that Mr. Tillerson wasn't long for the job have circulated since the summer and intensified over the fall when he was quoted as calling the president a "moron." The two men's relationship appeared to improve on the Asia trip in early November. Mr. Trump, however, continued to complain privately about Mr. Tillerson, people familiar with the discussions said.

Despite a rocky tenure, Mr. Tillerson helped carry out Mr. Trump's campaign of "maximum pressure" on North Korea, raising the issue in many meetings with foreign officials, sometimes as specifically as pointing to certain ships or transactions the U.S. found problematic. More than 20 countries took action, such as closing embassies and kicking out North Korean guest workers during his tenure.

He was also responsible for a warming of relations between Saudi Arabia and Iraq, which paved the way for the first trip by a Saudi foreign minister to Baghdad in years, officials said.

Mr. Tillerson additionally helped to negotiate a cease-fire zone with Russia and Jordan in southwest Syria, though officials warned earlier this week that the zone might be in danger amid violence there.

Still, the former Exxon Mobil chief executive struggled to appeal to career officials at the State Department, some of whom felt that Mr. Tillerson often ignored their policy advice. Many senior staff have departed and several top positions that require Senate confirmation remain vacant.

About one-third of the 152 key positions at the State Department requiring Senate confirmation have no nominee. Of 28 undersecretary and assistant secretary posts that run much of the building, only 10 are confirmed. The Trump administration hasn't nominated anyone to fill many of the remaining posts.

As Mr. Tillerson approached the one-year mark last month, aides close to him declared him "the Secretary of Stay," reflecting their belief that he appeared to have survived the tensions. But as the White House gears up for important diplomatic initiatives, including Mr. Trump's agreement to meet North Korean leader Kim Jong Un, the president decided it was time for a change, according to officials.

White House chief of staff John Kelly awoke Mr. Tillerson late Friday night while he was on a trip to Africa to let him know he would likely soon be fired, officials said. Mr. Tillerson cut the trip short and returned to Washington early Tuesday. Shortly after Mr. Trump tweeted that he had installed CIA Director Mike Pompeo as secretary of state and thanked Mr. Tillerson for his service, an aide alerted Mr. Tillerson that he had lost his job.

Write to Michael C. Bender at Mike.Bender@wsj.com and Felicia Schwartz at Felicia.Schwartz@wsj.com

Ins and Outs

* Trump Replaces Tillerson at State With CIA Chief

* Trump and Tillerson: Timeline of Their Ups and Downs

* How Tillerson's Firing Could Boost Oil Prices

* North Korea, Iran Will Test Pompeo

* With Pompeo, a Voice More to Trump's Liking

* Shulkin's Future at VA in Doubt

* Trump CIA Pick Has Scant Public Record

* President's Assistant Fired, Then Joins Campaign

* Sign Up: Capital Journal Daybreak newsletter

Credit: By Michael C. Bender and Felicia Schwartz

Subject: Diplomatic & consular services; Presidents; Political campaigns; Political appointments

Location: Middle East Russia Iraq Africa Baghdad Iraq Pennsylvania Syria Asia North Korea Mexico Massachusetts New York United States--US Saudi Arabia China

People: Romney, W Mitt Trump, Donald J Pompeo, Mike Rice, Condoleezza Kim Jong Un Kushner, Jared Giuliani, Rudolph W Hamm, Harold Tillerson, Rex W

Company / organization: Name: National Security Council; NAICS: 928110; Name: TIAA; NAICS: 524113, 525110; Name: Wall Street Journal; NAICS: 511110; Name: Republican Party; NAICS: 813940; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Central Intelligence Agency--CIA; NAICS: 928110, 928120; Name: Senate; NAICS: 921120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Mar 13, 2018

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2013187800

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2013187800?accountid=711 7

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-03-14

Database: The Wall Street Journal

Rex Tillerson's Golden Parachute; Top diplomat's time at the State Department earned him some nice tax benefits on his Exxon shares

Author: Jakab, Spencer

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Mar 2018: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

Rex Tillerson is having a bad day, but a glance at the share price of Exxon Mobil might make the day of his firing a tad better.

Mr. Tillerson, the firm's longtime chief executive, was dumped as Secretary of State just over a year after taking office. One bright spot for him is a law that makes it more financially attractive for people joining the executive branch to sell investments to comply with conflict-of-interest rules. The law allows an individual to sell his or her shares and put them into "permitted property" such as Treasury notes or a diversified mutual fund but to defer the taxes indefinitely on the sale.

This benefits people like Mr. Tillerson who had large, concentrated investments, in this case roughly $52 million in Exxon shares . His appointment proved to be an excellent time to diversify. Exxon shares have lagged behind an S&P 500 index fund by more than 29 percentage points since his confirmation last February. Selling when he did has left Mr. Tillerson $15 million better off than he otherwise would have been.

An even bigger benefit came from Exxon's decision to place his $180 million in deferred compensation , to be received over a decade, into a diversified trust rather than Exxon shares. If he had been forced to pay tax upfront on the compensation before joining the government, the bill would have been roughly $70 million. And if he had left it in Exxon stock rather than the diversified trust, that would have cost him on paper $50 million or so.

There were some benefits that Mr. Tillerson gave up without getting compensation. He forfeited an Exxon credit card that would have given him discounted gas for life. Even if the discount was a buck a gallon, though, and he drove a gas-guzzler worthy of a wealthy Texas oilman, his tax and diversification boon is worth about 23,000 years of cheap fill-ups.

Write to Spencer Jakab at spencer.jakab@wsj.com

Credit: By Spencer Jakab

Subject: Investments; Compensation

Location: Texas

People: Tillerson, Rex W

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Mar 13, 2018

column: Heard on the Street

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2013207750

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2013207750?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is p rohibited without permission.

Last updated: 2018-03-13

Database: The Wall Street Journal

'Rex, Eat the Salad': Inside the Awkward Relationship Between Rex Tillerson and Donald Trump; Cabinet post was a sharp change for a former Exxon Mobil CEO who was used to calling the shots

Author: Bender, Michael C; Schwartz, Felicia

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 Mar 2018: n/a. [Duplicate]

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

WASHINGTON--In a private room in China's Great Hall of the People in November, Secretary of State Rex Tillerson sat with President Donald Trump and other U.S. officials as their hosts delivered plates of wilted Caesar salad.

Mr. Trump, in the midst of a five-country tour of Asia, grew concerned the untouched greens would offend the Chinese, according to people familiar with the matter. So he ordered Mr. Tillerson to start. "Rex," he said, "eat the salad."

Mr. Tillerson laughed off the remark, but the moment illustrated the at-times awkward relationship between the secretary of state and his boss that came to an abrupt end Tuesday when Mr. Trump announced in a tweet that he had replaced him .

Initially, Mr. Trump brimmed with enthusiasm about the arrival in his cabinet of a seasoned executive, the chairman and chief executive of oil giant Exxon Mobil Corp.

While he had first considered other candidates--former New York Mayor Rudy Giuliani and former Massachusetts Gov. Mitt Romney--the new president was sold on Mr. Tillerson by former Defense Secretary Robert Gates, former Secretary of State Condoleezza Rice, and Harold Hamm, an oil billionaire and GOP donor, according to people familiar with the matter.

"Man, when there was a big find in a country, nobody had a chance when Rex went in to get it--Rex would go in, and it would be over," Mr. Hamm told the incoming president, said one person familiar with the conversation.

"That's what we want!" Mr. Trump replied.

Mr. Tillerson's appointment brought a globe-trotting executive to Washington to work for the first businessman president. No one before Mr. Trump had won the White House without previous government or military experience.

But soon Mr. Tillerson found himself in an awkward place: roiling a massive diplomatic bureaucracy with a proposal to slash its $55-billion budget by almost 40%, yet distant from the White House he reported in to.

A spokesman for Mr. Tillerson declined to comment.

Early in the administration, Mr. Tillerson tried to bridge Foggy Bottom and Pennsylvania Avenue by seeking to hold occasional meetings of the president's National Security Council at the State Department, according to a person familiar with the discussion. The request was rejected. And inside the White House, the former chief executive found himself crossing a trio of staffers who hadn't yet been born when he started his climb at Exxon in 1975.

Mr. Tillerson, 65 years old, clashed on immigration policy in front of the president with Stephen Miller, the president's 32-year-old policy adviser. After one correction from Mr. Miller, Mr. Tillerson barked so aggressively at the West Wing aide that the president suggested his secretary of state might have crossed the line, according to a person familiar with the exchange.

Johnny DeStefano, the 38-year-old in charge of White House personnel, helped scuttle several of Mr. Tillerson's appointments, according to officials. And control over major diplomatic priorities was always muddled, with Jared Kushner, the president's 37-year-old son-in-law and senior adviser, taking the lead on Middle East peace talks.

A promise from Mr. Trump during the transition that Mr. Tillerson could pick his own staff almost immediately fell through. Nor was Mr. Tillerson a central part of the decision-making process on the White House's original proposed travel ban or on expanding the so-called "Mexico City policy," which bars foreign organizations that receive U.S. aid from providing abortion services, officials said.

It was all a sharp change for an executive who was used to calling the shots at Exxon.

"As chief executive, you're in charge. As an agency head, you're sort of in charge," said Steven Goldstein, a former executive at TIAA who was undersecretary of state for public diplomacy and public affairs until he, too, was ousted Tuesday.

The secretary has also bewildered White House aides with his unwillingness to engage the media.

"I don't need to talk just to be talking, OK? I'm not a media hog," Mr. Tillerson said in an October interview with The Wall Street Journal, when asked why he had given relatively few interviews during his first year in office. "I don't need facial recognition. I don't need voice recognition. I don't need a lot of quotes. So, for me, it's when it's useful to talk, let's talk."

Rumors that Mr. Tillerson wasn't long for the job have circulated since the summer and intensified over the fall when he was quoted as calling the president a "moron." The two men's relationship appeared to improve on the Asia trip in early November. Mr. Trump, however, continued to complain privately about Mr. Tillerson, people familiar with the discussions said.

Despite a rocky tenure, Mr. Tillerson helped carry out Mr. Trump's campaign of "maximum pressure" on North Korea, raising the issue in many meetings with foreign officials, sometimes as specifically as pointing to certain ships or transactions the U.S. found problematic. More than 20 countries took action, such as closing embassies and kicking out North Korean guest workers during his tenure.

He was also responsible for a warming of relations between Saudi Arabia and Iraq, which paved the way for the first trip by a Saudi foreign minister to Baghdad in years, officials said.

Mr. Tillerson additionally helped to negotiate a cease-fire zone with Russia and Jordan in southwest Syria, though officials warned earlier this week that the zone might be in danger amid violence there.

Still, the former Exxon Mobil chief executive struggled to appeal to career officials at the State Department, some of whom felt that Mr. Tillerson often ignored their policy advice. Many senior staff have departed and several top positions that require Senate confirmation remain vacant.

About one-third of the 152 key positions at the State Department requiring Senate confirmation have no nominee. Of 28 undersecretary and assistant secretary posts that run much of the building, only 10 are confirmed. The Trump administration hasn't nominated anyone to fill many of the remaining posts.

As Mr. Tillerson approached the one-year mark last month, aides close to him declared him "the Secretary of Stay," reflecting their belief that he appeared to have survived the tensions. But as the White House gears up for important diplomatic initiatives, including Mr. Trump's agreement to meet North Korean leader Kim Jong Un, the president decided it was time for a change, according to officials.

White House chief of staff John Kelly awoke Mr. Tillerson late Friday night while he was on a trip to Africa to let him know he would likely soon be fired, officials said. Mr. Tillerson cut the trip short and returned to Washington early Tuesday. Shortly after Mr. Trump tweeted that he had installed CIA Director Mike Pompeo as secretary of state and thanked Mr. Tillerson for his service, an aide alerted Mr. Tillerson that he had lost his job.

Write to Michael C. Bender at Mike.Bender@wsj.com and Felicia Schwartz at Felicia.Schwartz@wsj.com

Ins and Outs

* Trump Replaces Tillerson at State With CIA Chief

* Trump and Tillerson: Timeline of Their Ups and Downs

* How Tillerson's Firing Could Boost Oil Prices

* North Korea, Iran Will Test Pompeo

* With Pompeo, a Voice More to Trump's Liking

* Shulkin's Future at VA in Doubt

* Trump CIA Pick Has Scant Public Record

* President's Assistant Fired, Then Joins Campaign

* Sign Up: Capital Journal Daybreak newsletter

Credit: By Michael C. Bender and Felicia Schwartz

Subject: Diplomatic & consular services; Presidents; Political campaigns; Political appointments

Location: Middle East Russia Iraq Iran Baghdad Iraq Africa Pennsylvania Syria Asia North Korea Mexico United States--US New York Massachusetts Saudi Arabia China

People: Trump, Donald J Romney, W Mitt Pompeo, Mike Rice, Condoleezza Kim Jong Un Kushner, Jared Giuliani, Rudolph W Hamm, Harold Tillerson, Rex W

Company / organization: Name: National Security Council; NAICS: 928110; Name: TIAA; NAICS: 524113, 525110; Name: Wall S treet Journal; NAICS: 511110; Name: Republican Party; NAICS: 813940; Name: Public Record; NAICS: 511110; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Senate; NAICS: 921120; Name: Central Intelligence Agency--CIA; NAICS: 928110, 928120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Mar 13, 2018

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2013462850

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2013462850?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-03-14

Database: The Wall Street Journal

University of Texas Courts Rex Tillerson to Be Next Chancellor; Higher-ed institution eyes departing secretary of state, ex-Exxon CEO, as next leader

Author: Olson, Bradley; Belkin, Douglas; Schwartz, Felicia

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 Mar 2018: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

The University of Texas is pursuing outgoing U.S. Secretary of State Rex Tillerson to become its next chancellor, according to people familiar with the matter.

The former Exxon Mobil Corp. chief executive--who gave his farewell speech as the nation's top diplomat Thursday and is formally set to leave his post March 31 after a tumultuous tenure serving President Donald Trump--is said to be open to the opportunity of leading the University of Texas System, one of the largest in U.S. higher education, the people said.

The search committee hasn't made any official offer to Mr. Tillerson, which is usually only done in the final stages of a selection process, the people said. But several members of a search committee are making "a hard push" to draw Mr. Tillerson, a University of Texas alumnus and Texas native, to the position, one person said.

Mr. Tillerson remains undecided about his next move following his abrupt departure from Washington, the people said. He said through a spokesman that he's receiving many requests and no decision has been made.

The University of Texas System is seeking to fill the post soon, as current Chancellor William McRaven, a former Navy SEAL and four-star admiral, announced his intention to step down in May for health reasons. The system has an enrollment of more than 230,000 students, an $18 billion annual budget, and more than 100,000 employees.

A spokeswoman for the university system said in a statement that staff and administrators are "not involved in the search process for the Chancellor, nor are we apprised of the names of any candidates or potential candidates."

In addition to being a former leader of one of the state's most iconic companies, Mr. Tillerson is a 1975 University of Texas graduate who was once a section leader in the Longhorn band. His sudden availability may complicate a search that had been expected to conclude soon.

Some university constituencies had sought a chancellor with experience in academia, as well as a woman or minority candidate, people familiar with the matter said.

As chancellor, Mr. Tillerson would take the helm of a sprawling higher education conglomerate with a scale that can almost compare to that of Exxon or the U.S. State Department. The chancellor position would give him stewardship over 14 institutions, including the University of Texas at Austin and the M.D. Anderson Cancer Center, one of the nation's foremost cancer research hospitals.

Cal Jillson, a professor of political science at Southern Methodist University, questioned whether Mr. Tillerson would have the skills to succeed as chancellor, a position that requires mediating among 14 institutions, the state legislature and the state's business leaders.

"When he was the CEO at Exxon Mobil he worked his way up the hierarchy and he made the final decision," said Mr. Jillson. "In the chancellor's job he would be at the head of the table but he is not going to be driving the process, it's much more consultative."

Mr. Tillerson appeared exhausted and at times emotional about leaving the State Department in several public appearances after being fired by Mr. Trump--a decision the president announced on Twitter--on March 13. He emphasized the importance of being kind and of personal integrity--and has not mentioned the president by name.

Adding to the insult of Mr. Tillerson's public firing, White House aides circulated a story that he had been on the toilet when he first received the call that it would happen. Of Washington, Mr. Tillerson said Thursday, "This can be a very mean-spirited town, but you don't have to choose to participate in it."

Mr. Tillerson has spoken fondly about his time at the University of Texas. He once joked to a group of students that he majored in civil engineering there because "God created organic chemistry to let people know when they don't belong in chemical engineering."

He most recently spoke at the system's flagship Austin campus in February.

Russell Gold contributed to this article.

Write to Bradley Olson at Bradley.Olson@wsj.com , Douglas Belkin at doug.belkin@wsj.com and Felicia Schwartz at Felicia.Schwartz@wsj.com

RELATED

* Tillerson Tells State Department Employees to Guard Their Integrity (March 22)

* Rex Tillerson Is Out as Secretary of State; Donald Trump Taps Mike Pompeo (March 13)

* 'Rex, Eat the Salad': Inside the Awkward Relationship Between Rex Tillerson and Donald Trump (March 13)

* Donald Trump and Rex Tillerson: Timeline of Their Ups and Downs (March 13)

Credit: By Bradley Olson, Douglas Belkin and Felicia Schwartz

Subject: Chief executive officers

Location: Texas United States--US

People: Trump, Donald J Tillerson, Rex W

Company / organization: Name: University of Texas System; NAICS: 611310; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: University of Texas; NAICS: 611310

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Mar 23, 2018

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2017170704

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2017170704?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-03-23

Database: The Wall Street Journal

University of Texas Courts Rex Tillerson to Be Next Chancellor; Higher-ed institution eyes departing secretary of state, ex-Exxon CEO, as next leader

Author: Olson, Bradley; Belkin, Douglas; Schwartz, Felicia

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]24 Mar 2018: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

The University of Texas is pursuing outgoing U.S. Secretary of State Rex Tillerson to become its next chancellor, according to people familiar with the matter.

The former Exxon Mobil Corp. chief executive--who gave his farewell speech as the nation's top diplomat Thursday and is formally set to leave his post March 31 after a tumultuous tenure serving President Donald Trump--is said to be open to the opportunity of leading the University of Texas System, one of the largest in U.S. higher education, the people said.

The search committee hasn't made any official offer to Mr. Tillerson, which is usually only done in the final stages of a selection process, the people said. But several members of a search committee are making "a hard push" to draw Mr. Tillerson, a University of Texas alumnus and Texas native, to the position, one person said.

Mr. Tillerson remains undecided about his next move following his abrupt departure from Washington, the people said. He said through a spokesman that he's receiving many requests and no decision has been made.

The University of Texas System is seeking to fill the post soon, as current Chancellor William McRaven, a former Navy SEAL and four-star admiral, announced his intention to step down in May for health reasons. The system has an enrollment of more than 230,000 students, an $18 billion annual budget, and more than 100,000 employees.

A spokeswoman for the university system said in a statement that staff and administrators are "not involved in the search process for the Chancellor, nor are we apprised of the names of any candidates or potential candidates."

In addition to being a former leader of one of the state's most iconic companies, Mr. Tillerson is a 1975 University of Texas graduate who was once a section leader in the Longhorn band. His sudden availability may complicate a search that had been expected to conclude soon.

Some university constituencies had sought a chancellor with experience in academia, as well as a woman or minority candidate, people familiar with the matter said.

As chancellor, Mr. Tillerson would take the helm of a sprawling higher education conglomerate with a scale that can almost compare to that of Exxon or the U.S. State Department. The chancellor position would give him stewardship over 14 institutions, including the University of Texas at Austin and the M.D. Anderson Cancer Center, one of the nation's foremost cancer research hospitals.

Cal Jillson, a professor of political science at Southern Methodist University, questioned whether Mr. Tillerson would have the skills to succeed as chancellor, a position that requires mediating among 14 institutions, the state legislature and the state's business leaders.

"When he was the CEO at Exxon Mobil he worked his way up the hierarchy and he made the final decision," said Mr. Jillson. "In the chancellor's job he would be at the head of the table but he is not going to be driving the process, it's much more consultative."

The structure of the job would resemble Mr. Tillerson's role at Exxon in some ways, with the leaders of many individual institutions reporting up to the chancellor, said Kent Hance, a former chancellor of the Texas Tech University system and lawmaker.

"The most important aspect of the role is having a relationship with members of the state legislature," said Mr. Hance, who has known Mr. Tillerson for many years. "He would be great at that."

Mr. Tillerson appeared exhausted and at times emotional about leaving the State Department in several public appearances after being fired by Mr. Trump--a decision the president announced on Twitter--on March 13. He emphasized the importance of being kind and of personal integrity--and has not mentioned the president by name.

Adding to the insult of Mr. Tillerson's public firing, White House aides circulated a story that he had been on the toilet when he first received the call that it would happen. Of Washington, Mr. Tillerson said Thursday, "This can be a very mean-spirited town, but you don't have to choose to participate in it."

Mr. Tillerson has spoken fondly about his time at the University of Texas. He once joked to a group of students that he majored in civil engineering there because "God created organic chemistry to let people know when they don't belong in chemical engineering."

He most recently spoke at the system's flagship Austin campus in February.

Russell Gold contributed to this article.

Write to Bradley Olson at Bradley.Olson@wsj.com , Douglas Belkin at doug.belkin@wsj.com and Felicia Schwartz at Felicia.Schwartz@wsj.com

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* Rex Tillerson Is Out as Secretary of State; Donald Trump Taps Mike Pompeo (March 13)

* 'Rex, Eat the Salad': Inside the Awkward Relationship Between Rex Tillerson and Donald Trump (March 13)

* Donald Trump and Rex Tillerson: Timeline of Their Ups and Downs (March 13)

Credit: By Bradley Olson, Douglas Belkin and Felicia Schwartz

Subject: Chief executive officers; Higher education; Leadership

Location: Texas United States--US

People: Trump, Donald J Pompeo, Mike Tillerson, Rex W

Company / organization: Name: University of Texas System; NAICS: 611310; Name: Texas Tech University; NAICS: 611310; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Twitter Inc; NAICS: 519130; Name: Southern Methodist University; NAICS: 611310; Name: University of Texas; NAICS: 611310; Name: Department of State; NAICS: 928120

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Mar 24, 2018

Section: Politics

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2017229299

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2017229299?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-03-23

Database: The Wall Street Journal

How Tillerson's Exxon Designed an Oil Deal to Skirt Anticorruption Scrutiny; The big driller was excited about offshore prospects in west Africa, but worried about 'issues regarding U.S. anticorruption laws'

Author: Patterson, Scott; Olson, Bradley; Grimaldi, James V

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]29 Mar 2018: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

Negotiators for Exxon Mobil Corp. gathered in a London hotel room faced a problem. The government of Liberia suspected that oil rights the energy giant coveted were tainted by corruption.

It was the winter of 2011, and crude-oil prices were surging. Exxon and then-Chief Executive Rex Tillerson were battling rivals to win access to fresh deposits around the globe. They wanted a deal.

The drilling rights the company sought in Liberia, however, appeared to be linked to former officials from the West African nation, according to internal Exxon documents reviewed by The Wall Street Journal and people familiar with the negotiations. An Exxon presentation from the London meeting indicated the company had "concern over issues regarding U.S. anticorruption laws."

An idea took shape. A Canadian company would buy the rights from a Liberian oil operator whose ownership was murky. Then Exxon would buy a controlling stake in the project from the Canadian outfit, according to the London presentation, documents outlining the deal and people familiar with the matter. Exxon completed the deal for $120 million in 2013.

There is a growing body of U.S. and European laws aimed at stamping out corruption around the world, and they have been aggressively enforced. The Exxon transaction shows the extent to which companies are structuring deals to try to minimize the risks of government scrutiny.

This account of what Exxon learned about potential red flags, and what it did in response, is based on interviews with three people directly involved in the negotiations and a review of transaction and bank documents detailing the movement of funds. Some of the documents were provided by Global Witness, a London-based organization that investigates corruption, which released a report on the deal Thursday. The Journal independently corroborated information from the Global Witness documents.

The bank documents reveal that hundreds of thousands of dollars in payments were made to Liberian government officials involved in the deal, including the son of the country's former president, Ellen Johnson Sirleaf, who was awarded the Nobel Peace Prize in 2011.

Exxon spokeswoman Rebecca Arnold said the company is "confident that the agreement complies with local Liberian law and international anticorruption laws....Exxon Mobil has an unwavering commitment to honest and ethical behavior wherever we do business. We have a longstanding commitment to compliance with the U.S. Foreign Corrupt Practices Act and the anticorruption laws of the countries and territories in which we do business."

Mr. Tillerson, President Donald Trump's recently ousted secretary of state, declined through a spokesman to comment.

Christopher Neyor, who was chief executive of the Liberian state oil company at the time of the London meeting, said "it was comfortable for" Exxon to deal with the Canadian company as part of the transaction. He said the state oil company and the Liberian "government at large did not know the truth" regarding the true owner of the Liberian oil stake.

Robert Sirleaf, Ms. Sirleaf's son and a former chairman of the state oil company, defended the payments to Liberian officials, saying they were bonuses for completing what was then a landmark deal in an impoverished country.

Global watchdogs see transparency as one of the best ways to reduce corruption, believing that when companies disclose payments to governments, money will be less likely to flow illegally to public officials. The U.K. in 2010 passed a law called the Bribery Act, a close cousin to the U.S. Foreign Corrupt Practices Act, which bars public companies from bribing government officials to gain an advantage over competitors.

In 2010, as Exxon's chief executive, Mr. Tillerson lobbied against a new federal requirement that required energy and mining companies to disclose payments to foreign governments, arguing that it put U.S. companies at a disadvantage to foreign rivals. Last year, U.S. lawmakers scrapped the requirement , which was part of the Dodd-Frank law.

Interest in potential oil riches off Liberia's shores blossomed in the mid-2000s as the country emerged from a long civil war. During a chaotic transitional period before the 2006 election of Ms. Sirleaf, there was a scramble among Liberians, including some members of the government, to get a piece of the possible oil-exploration boom, say people involved in Liberia's oil industry.

"There were a lot of suggestions that contracts were not signed in the way they would be under a more stable government," said Jeffrey Wood, a U.S. lawyer who has worked with the Liberian government on natural-resource oversight and helped it with the Exxon deal.

In 2005, when the contest for oil rights was gaining steam, a company called Broadway Consolidated PLC, registered on the Isle of Man, signed a contract with Liberia's state-run oil company, the National Oil Company of Liberia, or Nocal, for drilling rights to an offshore expanse known as Block 13. Another company, Oranto Petroleum Ltd., also obtained licenses from Nocal. Oranto said in a written statement that "multiple inquiries have concluded that Oranto's activities in Liberia were carried out in accordance with all laws and regulatory requirements." Broadway is now defunct.

Broadway investors have included an energy fund operated by RAB Capital, a U.K. investment fund. Several Liberians have also been linked to the company, including David Jallah, a politically connected lawyer listed in corporate filings as a shareholder. Mr. Jallah, the former dean of the country's law school, didn't respond to requests for comment.

Adolph Lawrence, a Liberian lawmaker who was chairman of the committee that oversees the country's oil-and-gas deals, once held contracts giving him the right to buy a stake in Broadway, according to a 2011 document related to a separate, scuttled transaction. He held his position at the time of the Exxon deal, although it isn't known whether he retained his Broadway interests after he began serving as a lawmaker in 2012. Mr. Lawrence didn't respond to requests for comment.

Jonathan Mason, minister of Liberia's lands, mines and energy department in the 2000s, helped launch several companies in the 1990s whose names included the word Broadway, according to documents reviewed by the Journal. In an interview, Mr. Mason said he worked as a consultant for Broadway Consolidated but never owned a stake in it.

The discovery of an enormous oil field off nearby Ghana's shores in 2007 touched off a rush to explore for oil off West Africa's coast, including in Liberia. Exxon, Chevron Corp. and other Western companies angled to gain access to potentially lucrative concessions. They struggled to compete with state-backed firms from China and Russia that often didn't adhere to the same anticorruption standards as the U.S. and European Union.

Chevron, the second-largest U.S. oil company, struck first in Liberia, inking a deal in 2010 with Oranto for three deep-water blocks. Chevron spokeswoman Isabel Ordóñez said the company applies "full due diligence" to all potential partners and follows all laws in the countries where it operates, which it did in Liberia.

A 2011 investigation by Liberia's General Auditing Commission found that in 2006 and 2007, Nocal disbursed more than $100,000 to legislators. Some members of Nocal's board had concerns the payments were made "to influence the passage of the petroleum contracts" of Broadway and Oranto and were "a form of bribery," the commission said.

Chevron had concerns similar to Exxon's about securing Block 13, including about the owners of Broadway, which had changed its name to Peppercoast Petroleum, according to a former Liberian government oil minister and a person familiar with Chevron's review of the block.

Peppercoast, meanwhile, had failed to move ahead on an exploration program. The Liberian government pushed it to sell.

Canadian Overseas Petroleum Ltd., a Calgary, Canada, oil company, began negotiating to purchase a stake in the block from Peppercoast. But Nocal blocked the bid amid concerns that Canadian Overseas didn't have experience drilling deep-water wells, according to Mr. Neyor.

Enter Exxon. In December 2011, a team of Exxon officials met in London with several Liberian government officials, including then-President Sirleaf's son, Mr. Sirleaf, who was soon to be appointed chairman of Nocal, according to documents reviewed by the Journal and people who attended the meeting.

Exxon officials outlined their concerns about potential corruption tied to the block, according to the people and a PowerPoint presentation made by Exxon at the meeting.

Exxon detailed a two-step transaction: Canadian Overseas would purchase the rights to Block 13 from Peppercoast, then Exxon would buy a controlling stake in the block from Canadian Overseas, according to the people and the PowerPoint presentation. Putting Canadian Overseas in the middle of the transaction would allow Exxon to avoid dealing directly with Peppercoast.

Canadian Overseas said in a written statement that it "adheres to the highest levels of corporate governance as a public company," and that it "carried out meticulous due diligence over a two-year period before completing the Liberian acquisition and sought legal advice in the UK, Liberia, Canada and United States. No evidence was ever found to suggest Liberian government officials were linked to shareholdings in Peppercoast."

Mr. Wood, who attended the meeting on behalf of the Liberians, said Exxon was "extremely careful to be seen as doing things that were correct" in the deal.

Sixteen months later, the Liberian government approved a deal that public and internal Liberian records show was close to what had been outlined in the London hotel, with an important added detail outlined in the production-sharing agreement.

Exxon insisted that it wouldn't pay any cash to Peppercoast, nor would partner Canadian Overseas Petroleum. Instead, the money for the deal would go to the state oil company, Nocal, which had agreed to act as an intermediary. Nocal secured a short-term loan from an African bank called Ecobank Transnational Inc. to pay Peppercoast to transfer the oil block. On April 5, 2013, Nocal used the loan to pay $68.5 million to Peppercoast, which transferred Block 13 to Canadian Overseas, which then transferred an 80% stake to Exxon, bank records and deal documents show.

That same day, Exxon paid $120 million from a New York bank account to the African bank used by Nocal, satisfying the short-term loan, the documents show. The Liberian government got $45 million from the deal, Nocal got $5 million as a bonus, and the African bank received $1.5 million in fees, the documents show. A spokeswoman for EcoBank didn't respond to a request for comment.

Weeks after the money was transferred, Nocal made payments totaling more than $500,000 to more than 100 Nocal employees, according to Mr. Sirleaf and bank records provided by Global Witness. He received $35,000, the bank records show.

There is no indication Exxon, Mr. Tillerson or Canadian Overseas was aware of the payments.

Jeffrey Neiman, a former federal prosecutor at law firm Marcus Neiman & Rashbaum LLP who specializes in white-collar crime and U.S. anticorruption laws, said federal investigators often take interest when corporate money reaches politicians in high-risk jurisdictions such as Liberia. "However, criminal liability only attaches if Exxon or its representatives knew about corrupt payments and somehow participated," he said.

The Liberian government, under newly elected president George Weah, is reviewing Nocal's audit reports and the bidding processes that led to the auctioning of oil blocks, said Eugene Nagbe, Liberia's minister of information, culture and tourism, in an email. "If any corruption activity is found to have taken place, the perpetrators will be brought to justice," he said.

Mr. Sirleaf, who said he has worked for 24 years in finance for several U.S. banks, stands by the deal.

"It was the right thing to do at the right time, and it still is," he said. He compared the payments to year-end bonuses and said they were paid to all Nocal employees.

It was ultimately not the right deal for Exxon. The well it drilled to test the site's prospects came up dry. Exxon gave up its rights to the prospect last year.

Write to Scott Patterson at scott.patterson@wsj.com and Bradley Olson at Bradley.Olson@wsj.com

Credit: By Scott Patterson, Bradley Olson and James V. Grimaldi

Subject: Equity stake; Contract negotiations; Criminal investigations; Criminal liability; Corruption; Public officials; Competition

Location: United States--US United Kingdom--UK Liberia

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Global Witness; NAICS: 813319

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Mar 29, 2018

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2019513326

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2019513326?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-04-04

Database: The Wall Street Journal

Federal Judge Dismisses Exxon Lawsuit Against Climate-Change Probes; New York, Massachusetts seek documents from oil company; judge calls Exxon's civil complaint 'legal jiu-jitsu'

Author: Armental, Maria

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Mar 2018: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

A federal judge has thrown out a lawsuit that Exxon Mobil Corp. had filed to stop government investigations into the company's assertions about climate change.

In a strongly worded opinion , Manhattan U.S. District Judge Valerie Caproni on Thursday dismissed the case with prejudice, meaning the complaint cannot be refiled.

"Exxon's allegations that the [state attorneys general] are pursuing bad faith investigations in order to violate Exxon's constitutional rights are implausible and therefore must be dismissed for failure to state a claim," she wrote.

In 2015, New York Attorney General Eric Schneiderman subpoenaed Exxon Mobil,

seeking documents about the company's research on and response to climate change over several decades. About six months later, Massachusetts Attorney General Maura Healey filed a similar demand .

"Exxon's attempt to argue relevance in this Court but not in the New York Supreme Court reviewing the Subpoena smacks of a 'have your cake and eat it too' approach," Judge Caproni wrote in a footnote. "The legal jiu-jitsu necessary to pursue this strategy would be impressive had it not raised serious risks of federal meddling in state investigations and led to a sprawling litigation involving four different judges, at least three lawsuits, innumerable motions and a huge waste of the AGs' time and money."

Exxon, in a civil complaint initially filed in Texas, had asked federal courts to stop the New York and Massachusetts attorneys general from investigating whether the oil giant misled investors and the public by playing down the impact of global warming, saying the investigations were politically motivated and sought to "silence and intimidate one side of the public policy debate on how to address climate change."

A company representative couldn't be reached for comment Thursday after regular business hours.

Ms. Healey, in a video posted on her Twitter account , called the ruling a "victory for the people."

"Exxon's run a scorched-earth campaign to stop our investigation and avoid answering basic questions," Ms. Healey said. "Their customers, their investors and the public deserve answers."

Mr. Schneiderman said New York's investigation would continue.

"At every turn in our investigation, Exxon has tried to distract and deflect from the facts at hand," he said in a statement. "But we will not be deterred."

Write to Maria Armental at maria.armental@wsj.com

Credit: By Maria Armental

Subject: Attorneys general; Federal court decisions; Climate change; Litigation

Location: Texas United States--US New York Massachusetts

People: Schneiderman, Eric

Company / organization: Name: Supreme Court-New York; NAICS: 922110; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Twitter Inc; NAICS: 519130

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Mar 30, 2018

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2019691512

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2019691512?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-04-04

Database: The Wall Street Journal

Exxon Designed Deal to Skirt Scrutiny --- Oil giant was excited about Africa prospect but worried about U.S. laws

Author: Patterson, Scott; Olson, Bradley; Grimaldi, James V

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]30 Mar 2018: A.1.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

Negotiators for Exxon Mobil Corp., gathered in a London hotel room, faced a problem. The government of Liberia suspected that oil rights the energy giant coveted were tainted by corruption.

It was the winter of 2011, and crude-oil prices were surging. Exxon and then-Chief Executive Rex Tillerson were battling rivals to win access to fresh deposits around the globe. They wanted a deal.

The drilling rights the company sought in Liberia, however, appeared to be linked to former officials from the West African nation, according to internal Exxon documents reviewed by The Wall Street Journal and people familiar with the negotiations. An Exxon presentation from the London meeting indicated the company had "concern over issues regarding U.S. anticorruption laws."

An idea took shape. A Canadian company would buy the rights from a Liberian oil operator whose ownership was murky. Then Exxon would buy a controlling stake in the project from the Canadian outfit, according to the London presentation, documents outlining the deal and people familiar with the matter. Exxon completed the deal for $120 million in 2013.

There is a growing body of U.S. and European laws aimed at stamping out corruption around the world, and they have been aggressively enforced. The Exxon transaction shows the extent to which companies are structuring deals to try to minimize the risks of government scrutiny.

This account of what Exxon learned about potential red flags, and what it did in response, is based on interviews with three people directly involved in the negotiations and a review of transaction and bank documents detailing the movement of funds. Some of the documents were provided by Global Witness, a London-based organization that investigates corruption, which released a report on the deal Thursday. The Journal independently corroborated information from the Global Witness documents.

The bank documents reveal that hundreds of thousands of dollars in payments were made to Liberian government officials involved in the deal, including the son of the country's former president, Ellen Johnson Sirleaf, who was awarded the Nobel Peace Prize in 2011.

Exxon spokeswoman Rebecca Arnold said the company is "confident that the agreement complies with local Liberian law and international anticorruption laws. . . . Exxon Mobil has an unwavering commitment to honest and ethical behavior wherever we do business. We have a longstanding commitment to compliance with the U.S. Foreign Corrupt Practices Act and the anticorruption laws of the countries and territories in which we do business."

Mr. Tillerson, President Donald Trump's recently ousted secretary of state, declined through a spokesman to comment.

Christopher Neyor, who was chief executive of the Liberian state oil company at the time of the London meeting, said "it was comfortable for" Exxon to deal with the Canadian company as part of the transaction. He said the state oil company and the Liberian "government at large did not know the truth" regarding the true owner of the Liberian oil stake.

Robert Sirleaf, Ms. Sirleaf's son and a former chairman of the state oil company, defended the payments to Liberian officials, saying they were bonuses for completing what was then a landmark deal in an impoverished country.

Global watchdogs see transparency as one of the best ways to reduce corruption, believing that when companies disclose payments to governments, money will be less likely to flow illegally to public officials. The U.K. in 2010 passed a law called the Bribery Act, a close cousin to the U.S. Foreign Corrupt Practices Act, which bars public companies from bribing government officials to gain an advantage over competitors.

In 2010, as Exxon's chief executive, Mr. Tillerson lobbied against a new federal requirement that required energy and mining companies to disclose payments to foreign governments, arguing that it put U.S. companies at a disadvantage to foreign rivals. Last year, U.S. lawmakers scrapped the requirement, which was part of the Dodd-Frank law.

Interest in potential oil riches off Liberia's shores blossomed in the mid-2000s as the country emerged from a long civil war. During a chaotic transitional period before the 2006 election of Ms. Sirleaf, there was a scramble among Liberians, including some members of the government, to get a piece of the possible oil-exploration boom, say people involved in Liberia's oil industry.

"There were a lot of suggestions that contracts were not signed in the way they would be under a more stable government," said Jeffrey Wood, a U.S. lawyer who has worked with the Liberian government on natural-resource oversight and helped it with the Exxon deal.

In 2005, when the contest for oil rights was gaining steam, a company called Broadway Consolidated PLC, registered on the Isle of Man, signed a contract with Liberia's state-run oil company, the National Oil Company of Liberia, or Nocal, for drilling rights to an offshore expanse known as Block 13. Another company, Oranto Petroleum Ltd., also obtained licenses from Nocal. Oranto said in a written statement that "multiple inquiries have concluded that Oranto's activities in Liberia were carried out in accordance with all laws and regulatory requirements." Broadway is now defunct.

Broadway investors have included an energy fund operated by RAB Capital, a U.K. investment fund. Several Liberians have also been linked to the company, including David Jallah, a politically connected lawyer listed in corporate filings as a shareholder. Mr. Jallah, the former dean of the country's law school, didn't respond to requests for comment.

Adolph Lawrence, a Liberian lawmaker who was chairman of the committee that oversees the country's oil-and-gas deals, once held contracts giving him the right to buy a stake in Broadway, according to a 2011 document related to a separate, scuttled transaction. He held his position at the time of the Exxon deal, although it isn't known whether he retained his Broadway interests after he began serving as a lawmaker in 2012. Mr. Lawrence didn't respond to requests for comment.

Jonathan Mason, minister of Liberia's lands, mines and energy department in the 2000s, helped launch several companies in the 1990s whose names included the word Broadway, according to documents reviewed by the Journal. In an interview, Mr. Mason said he worked as a consultant for Broadway Consolidated but never owned a stake in it.

The discovery of an enormous oil field off nearby Ghana's shores in 2007 touched off a rush to explore for oil off West Africa's coast, including in Liberia. Exxon, Chevron Corp. and other Western companies angled to gain access to potentially lucrative concessions. They struggled to compete with state-backed firms from China and Russia that often didn't adhere to the same anticorruption standards as the U.S. and European Union.

Chevron, the second-largest U.S. oil company, struck first in Liberia, inking a deal in 2010 with Oranto for three deep-water blocks. Chevron spokeswoman Isabel Ordonez said the company applies "full due diligence" to all potential partners and follows all laws in the countries where it operates, which it did in Liberia.

A 2011 investigation by Liberia's General Auditing Commission found that in 2006 and 2007, Nocal disbursed more than $100,000 to legislators. Some members of Nocal's board had concerns the payments were made "to influence the passage of the petroleum contracts" of Broadway and Oranto and were "a form of bribery," the commission said.

Chevron had concerns similar to Exxon's about securing Block 13, including about the owners of Broadway, which had changed its name to Peppercoast Petroleum, according to a former Liberian government oil minister and a person familiar with Chevron's review of the block.

Peppercoast, meanwhile, had failed to move ahead on an exploration program. The Liberian government pushed it to sell.

Canadian Overseas Petroleum Ltd., a Calgary, Canada, oil company, began negotiating to purchase a stake in the block from Peppercoast. But Nocal blocked the bid amid concerns that Canadian Overseas didn't have experience drilling deep-water wells, according to Mr. Neyor.

Enter Exxon. In December 2011, a team of Exxon officials met in London with several Liberian government officials, including then-President Sirleaf's son, Mr. Sirleaf, who was soon to be appointed chairman of Nocal, according to documents reviewed by the Journal and people who attended the meeting.

Exxon officials outlined their concerns about potential corruption tied to the block, according to the people and a PowerPoint presentation made by Exxon at the meeting.

Exxon detailed a two-step transaction: Canadian Overseas would purchase the rights to Block 13 from Peppercoast, then Exxon would buy a controlling stake in the block from Canadian Overseas, according to the people and the PowerPoint presentation. Putting Canadian Overseas in the middle of the transaction would allow Exxon to avoid dealing directly with Peppercoast.

Canadian Overseas said in a written statement that it "adheres to the highest levels of corporate governance as a public company," and that it "carried out meticulous due diligence over a two-year period before completing the Liberian acquisition and sought legal advice in the UK, Liberia, Canada and United States. No evidence was ever found to suggest Liberian government officials were linked to shareholdings in Peppercoast."

Mr. Wood, who attended the meeting on behalf of the Liberians, said Exxon was "extremely careful to be seen as doing things that were correct" in the deal.

Sixteen months later, the Liberian government approved a deal that public and internal Liberian records show was close to what had been outlined in the London hotel, with an important added detail outlined in the production-sharing agreement.

Exxon insisted that it wouldn't pay any cash to Peppercoast, nor would partner Canadian Overseas Petroleum. Instead, the money for the deal would go to the state oil company, Nocal, which had agreed to act as an intermediary. Nocal secured a short-term loan from an African bank called Ecobank Transnational Inc. to pay Peppercoast to transfer the oil block. On April 5, 2013, Nocal used the loan to pay $68.5 million to Peppercoast, which transferred Block 13 to Canadian Overseas, which then transferred an 80% stake to Exxon, bank records and deal documents show.

That same day, Exxon paid $120 million from a New York bank account to the African bank used by Nocal, satisfying the short-term loan, the documents show. The Liberian government got $45 million from the deal, Nocal got $5 million as a bonus, and the African bank received $1.5 million in fees, the documents show. A spokeswoman for EcoBank didn't respond to a request for comment.

Weeks after the money was transferred, Nocal made payments totaling more than $500,000 to more than 100 Nocal employees, according to Mr. Sirleaf and bank records provided by Global Witness. He received $35,000, the bank records show.

There is no indication Exxon, Mr. Tillerson or Canadian Overseas was aware of the payments.

The Liberian government, under newly elected president George Weah, is reviewing Nocal's audit reports and the bidding processes that led to the auctioning of oil blocks, said Eugene Nagbe, Liberia's minister of information, culture and tourism, in an email. "If any corruption activity is found to have taken place, the perpetrators will be brought to justice," he said.

Mr. Sirleaf, who said he has worked for 24 years in finance for several U.S. banks, stands by the deal.

"It was the right thing to do at the right time, and it still is," he said. He compared the payments to year-end bonuses and said they were paid to all Nocal employees.

It was ultimately not the right deal for Exxon. The well it drilled to test the site's prospects came up dry. Exxon gave up its rights to the prospect last year.

Negotiators for Exxon Mobil Corp., gathered in a London hotel room, faced a problem. The government of Liberia suspected that oil rights the energy giant coveted were tainted by corruption.

It was the winter of 2011, and crude-oil prices were surging. Exxon and then-Chief Executive Rex Tillerson were battling rivals to win access to fresh deposits around the globe. They wanted a deal.

The drilling rights the company sought in Liberia, however, appeared to be linked to former officials from the West African nation, according to internal Exxon documents reviewed by The Wall Street Journal and people familiar with the negotiations. An Exxon presentation from the London meeting indicated the company had "concern over issues regarding U.S. anticorruption laws."

An idea took shape. A Canadian company would buy the rights from a Liberian oil operator whose ownership was murky. Then Exxon would buy a controlling stake in the project from the Canadian outfit, according to the London presentation, documents outlining the deal and people familiar with the matter. Exxon completed the deal for $120 million in 2013.

There is a growing body of U.S. and European laws aimed at stamping out corruption around the world, and they have been aggressively enforced. The Exxon transaction shows the extent to which companies are structuring deals to try to minimize the risks of government scrutiny.

This account of what Exxon learned about potential red flags, and what it did in response, is based on interviews with three people directly involved in the negotiations and a review of transaction and bank documents detailing the movement of funds. Some of the documents were provided by Global Witness, a London-based organization that investigates corruption, which released a report on the deal Thursday. The Journal independently corroborated information from the Global Witness documents.

The bank documents reveal that hundreds of thousands of dollars in payments were made to Liberian government officials involved in the deal, including the son of the country's former president, Ellen Johnson Sirleaf, who was awarded the Nobel Peace Prize in 2011.

Exxon spokeswoman Rebecca Arnold said the company is "confident that the agreement complies with local Liberian law and international anticorruption laws. . . . Exxon Mobil has an unwavering commitment to honest and ethical behavior wherever we do business. We have a longstanding commitment to compliance with the U.S. Foreign Corrupt Practices Act and the anticorruption laws of the countries and territories in which we do business."

Mr. Tillerson, President Donald Trump's recently ousted secretary of state, declined through a spokesman to comment.

Christopher Neyor, who was chief executive of the Liberian state oil company at the time of the London meeting, said "it was comfortable for" Exxon to deal with the Canadian company as part of the transaction. He said the state oil company and the Liberian "government at large did not know the truth" regarding the true owner of the Liberian oil stake.

Robert Sirleaf, Ms. Sirleaf's son and a former chairman of the state oil company, defended the payments to Liberian officials, saying they were bonuses for completing what was then a landmark deal in an impoverished country.

Global watchdogs see transparency as one of the best ways to reduce corruption, believing that when companies disclose payments to governments, money will be less likely to flow illegally to public officials. The U.K. in 2010 passed a law called the Bribery Act, a close cousin to the U.S. Foreign Corrupt Practices Act, which bars public companies from bribing government officials to gain an advantage over competitors.

In 2010, as Exxon's chief executive, Mr. Tillerson lobbied against a new federal requirement that required energy and mining companies to disclose payments to foreign governments, arguing that it put U.S. companies at a disadvantage to foreign rivals. Last year, U.S. lawmakers scrapped the requirement, which was part of the Dodd-Frank law.

Interest in potential oil riches off Liberia's shores blossomed in the mid-2000s as the country emerged from a long civil war. During a chaotic transitional period before the 2006 election of Ms. Sirleaf, there was a scramble among Liberians, including some members of the government, to get a piece of the possible oil-exploration boom, say people involved in Liberia's oil industry.

"There were a lot of suggestions that contracts were not signed in the way they would be under a more stable government," said Jeffrey Wood, a U.S. lawyer who has worked with the Liberian government on natural-resource oversight and helped it with the Exxon deal.

In 2005, when the contest for oil rights was gaining steam, a company called Broadway Consolidated PLC, registered on the Isle of Man, signed a contract with Liberia's state-run oil company, the National Oil Company of Liberia, or Nocal, for drilling rights to an offshore expanse known as Block 13. Another company, Oranto Petroleum Ltd., also obtained licenses from Nocal. Oranto said in a written statement that "multiple inquiries have concluded that Oranto's activities in Liberia were carried out in accordance with all laws and regulatory requirements." Broadway is now defunct.

Broadway investors have included an energy fund operated by RAB Capital, a U.K. investment fund. Several Liberians have also been linked to the company, including David Jallah, a politically connected lawyer listed in corporate filings as a shareholder. Mr. Jallah, the former dean of the country's law school, didn't respond to requests for comment.

Adolph Lawrence, a Liberian lawmaker who was chairman of the committee that oversees the country's oil-and-gas deals, once held contracts giving him the right to buy a stake in Broadway, according to a 2011 document related to a separate, scuttled transaction. He held his position at the time of the Exxon deal, although it isn't known whether he retained his Broadway interests after he began serving as a lawmaker in 2012. Mr. Lawrence didn't respond to requests for comment.

Jonathan Mason, minister of Liberia's lands, mines and energy department in the 2000s, helped launch several companies in the 1990s whose names included the word Broadway, according to documents reviewed by the Journal. In an interview, Mr. Mason said he worked as a consultant for Broadway Consolidated but never owned a stake in it.

The discovery of an enormous oil field off nearby Ghana's shores in 2007 touched off a rush to explore for oil off West Africa's coast, including in Liberia. Exxon, Chevron Corp. and other Western companies angled to gain access to potentially lucrative concessions. They struggled to compete with state-backed firms from China and Russia that often didn't adhere to the same anticorruption standards as the U.S. and European Union.

Chevron, the second-largest U.S. oil company, struck first in Liberia, inking a deal in 2010 with Oranto for three deep-water blocks. Chevron spokeswoman Isabel Ordonez said the company applies "full due diligence" to all potential partners and follows all laws in the countries where it operates, which it did in Liberia.

A 2011 investigation by Liberia's General Auditing Commission found that in 2006 and 2007, Nocal disbursed more than $100,000 to legislators. Some members of Nocal's board had concerns the payments were made "to influence the passage of the petroleum contracts" of Broadway and Oranto and were "a form of bribery," the commission said.

Chevron had concerns similar to Exxon's about securing Block 13, including about the owners of Broadway, which had changed its name to Peppercoast Petroleum, according to a former Liberian government oil minister and a person familiar with Chevron's review of the block.

Peppercoast, meanwhile, had failed to move ahead on an exploration program. The Liberian government pushed it to sell.

Canadian Overseas Petroleum Ltd., a Calgary, Canada, oil company, began negotiating to purchase a stake in the block from Peppercoast. But Nocal blocked the bid amid concerns that Canadian Overseas didn't have experience drilling deep-water wells, according to Mr. Neyor.

Enter Exxon. In December 2011, a team of Exxon officials met in London with several Liberian government officials, including then-President Sirleaf's son, Mr. Sirleaf, who was soon to be appointed chairman of Nocal, according to documents reviewed by the Journal and people who attended the meeting.

Exxon officials outlined their concerns about potential corruption tied to the block, according to the people and a PowerPoint presentation made by Exxon at the meeting.

Exxon detailed a two-step transaction: Canadian Overseas would purchase the rights to Block 13 from Peppercoast, then Exxon would buy a controlling stake in the block from Canadian Overseas, according to the people and the PowerPoint presentation. Putting Canadian Overseas in the middle of the transaction would allow Exxon to avoid dealing directly with Peppercoast.

Canadian Overseas said in a written statement that it "adheres to the highest levels of corporate governance as a public company," and that it "carried out meticulous due diligence over a two-year period before completing the Liberian acquisition and sought legal advice in the UK, Liberia, Canada and United States. No evidence was ever found to suggest Liberian government officials were linked to shareholdings in Peppercoast."

Mr. Wood, who attended the meeting on behalf of the Liberians, said Exxon was "extremely careful to be seen as doing things that were correct" in the deal.

Sixteen months later, the Liberian government approved a deal that public and internal Liberian records show was close to what had been outlined in the London hotel, with an important added detail outlined in the production-sharing agreement.

Exxon insisted that it wouldn't pay any cash to Peppercoast, nor would partner Canadian Overseas Petroleum. Instead, the money for the deal would go to the state oil company, Nocal, which had agreed to act as an intermediary. Nocal secured a short-term loan from an African bank called Ecobank Transnational Inc. to pay Peppercoast to transfer the oil block. On April 5, 2013, Nocal used the loan to pay $68.5 million to Peppercoast, which transferred Block 13 to Canadian Overseas, which then transferred an 80% stake to Exxon, bank records and deal documents show.

That same day, Exxon paid $120 million from a New York bank account to the African bank used by Nocal, satisfying the short-term loan, the documents show. The Liberian government got $45 million from the deal, Nocal got $5 million as a bonus, and the African bank received $1.5 million in fees, the documents show. A spokeswoman for EcoBank didn't respond to a request for comment.

Weeks after the money was transferred, Nocal made payments totaling more than $500,000 to more than 100 Nocal employees, according to Mr. Sirleaf and bank records provided by Global Witness. He received $35,000, the bank records show.

There is no indication Exxon, Mr. Tillerson or Canadian Overseas was aware of the payments.

The Liberian government, under newly elected president George Weah, is reviewing Nocal's audit reports and the bidding processes that led to the auctioning of oil blocks, said Eugene Nagbe, Liberia's minister of information, culture and tourism, in an email. "If any corruption activity is found to have taken place, the perpetrators will be brought to justice," he said.

Mr. Sirleaf, who said he has worked for 24 years in finance for several U.S. banks, stands by the deal.

"It was the right thing to do at the right time, and it still is," he said. He compared the payments to year-end bonuses and said they were paid to all Nocal employees.

It was ultimately not the right deal for Exxon. The well it drilled to test the site's prospects came up dry. Exxon gave up its rights to the prospect last year.

Credit: By Scott Patterson, Bradley Olson and James V. Grimaldi

Subject: Equity stake; Contract negotiations; Due diligence; Corruption; Public officials

Location: United States--US Canada United Kingdom--UK Liberia

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Global Witness; NAICS: 813319

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.1

Publication year: 2018

Publication date: Mar 30, 2018

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2019741760

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2019741760?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-03-30

Database: The Wall Street Journal

Business News: Exxon Fails to Stop Climate Inquiries

Author: Armental, Maria

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]30 Mar 2018: B.3.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

A federal judge has thrown out a lawsuit that Exxon Mobil Corp. had filed to stop government investigations into its assertions about climate change.

Manhattan U.S. District Judge Valerie Caproni on Thursday dismissed the case with prejudice, meaning the complaint cannot be refiled.

"Exxon's allegations that the [state attorneys general] are pursuing bad faith investigations in order to violate Exxon's constitutional rights are implausible and therefore must be dismissed for failure to state a claim," she wrote.

In 2015, New York Attorney General Eric Schneiderman subpoenaed Exxon Mobil, seeking documents about its research on and response to climate change over several decades. About six months later, Massachusetts Attorney General Maura Healey filed a similar demand.

Exxon, in a civil complaint initially filed in Texas, had asked federal courts to stop the New York and Massachusetts attorneys general from investigating whether the oil giant misled investors and the public by playing down the impact of global warming, saying the investigations were politically motivated.

A company representative couldn't be reached for comment Thursday after regular business hours.

A federal judge has thrown out a lawsuit that Exxon Mobil Corp. had filed to stop government investigations into its assertions about climate change.

Manhattan U.S. District Judge Valerie Caproni on Thursday dismissed the case with prejudice, meaning the complaint cannot be refiled.

"Exxon's allegations that the [state attorneys general] are pursuing bad faith investigations in order to violate Exxon's constitutional rights are implausible and therefore must be dismissed for failure to state a claim," she wrote.

In 2015, New York Attorney General Eric Schneiderman subpoenaed Exxon Mobil, seeking documents about its research on and response to climate change over several decades. About six months later, Massachusetts Attorney General Maura Healey filed a similar demand.

Exxon, in a civil complaint initially filed in Texas, had asked federal courts to stop the New York and Massachusetts attorneys general from investigating whether the oil giant misled investors and the public by playing down the impact of global warming, saying the investigations were politically motivated.

A company representative couldn't be reached for comment Thursday after regular business hours.

Credit: By Maria Armental

Subject: Attorneys general; Federal court decisions; Climate change

Location: Texas Massachusetts New York United States--US

People: Schneiderman, Eric

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal, Easter n edition; New York, N.Y.

Pages: B.3

Publication year: 2018

Publication date: Mar 30, 2018

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2019741781

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2019741781?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-03-30

Database: The Wall Street Journal

How Tillerson's Exxon Designed an Oil Deal to Skirt Anticorruption Scrutiny; The big driller was excited about offshore prospects in west Africa, but worried about 'issues regarding U.S. anticorruption laws'

Author: Patterson, Scott; Olson, Bradley; Grimaldi, James V

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 Mar 2018: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

Negotiators for Exxon Mobil Corp. gathered in a London hotel room faced a problem. The government of Liberia suspected that oil rights the energy giant coveted were tainted by corruption.

It was the winter of 2011, and crude-oil prices were surging. Exxon and then-Chief Executive Rex Tillerson were battling rivals to win access to fresh deposits around the globe. They wanted a deal.

The drilling rights the company sought in Liberia, however, appeared to be linked to former officials from the West African nation, according to internal Exxon documents reviewed by The Wall Street Journal and people familiar with the negotiations. An Exxon presentation from the London meeting indicated the company had "concern over issues regarding U.S. anticorruption laws."

An idea took shape. A Canadian company would buy the rights from a Liberian oil operator whose ownership was murky. Then Exxon would buy a controlling stake in the project from the Canadian outfit, according to the London presentation, documents outlining the deal and people familiar with the matter. Exxon completed the deal for $120 million in 2013.

There is a growing body of U.S. and European laws aimed at stamping out corruption around the world, and they have been aggressively enforced. The Exxon transaction shows the extent to which companies are structuring deals to try to minimize the risks of government scrutiny.

This account of what Exxon learned about potential red flags, and what it did in response, is based on interviews with three people directly involved in the negotiations and a review of transaction and bank documents detailing the movement of funds. Some of the documents were provided by Global Witness, a London-based organization that investigates corruption, which released a report on the deal Thursday. The Journal independently corroborated information from the Global Witness documents.

The bank documents reveal that hundreds of thousands of dollars in payments were made to Liberian government officials involved in the deal, including the son of the country's former president, Ellen Johnson Sirleaf, who was awarded the Nobel Peace Prize in 2011.

Exxon spokeswoman Rebecca Arnold said the company is "confident that the agreement complies with local Liberian law and international anticorruption laws....Exxon Mobil has an unwavering commitment to honest and ethical behavior wherever we do business. We have a longstanding commitment to compliance with the U.S. Foreign Corrupt Practices Act and the anticorruption laws of the countries and territories in which we do business."

Mr. Tillerson, President Donald Trump's recently ousted secretary of state, declined through a spokesman to comment.

Christopher Neyor, who was chief executive of the Liberian state oil company at the time of the London meeting, said "it was comfortable for" Exxon to deal with the Canadian company as part of the transaction. He said the state oil company and the Liberian "government at large did not know the truth" regarding the true owner of the Liberian oil stake.

Robert Sirleaf, Ms. Sirleaf's son and a former chairman of the state oil company, defended the payments to Liberian officials, saying they were bonuses for completing what was then a landmark deal in an impoverished country.

Global watchdogs see transparency as one of the best ways to reduce corruption, believing that when companies disclose payments to governments, money will be less likely to flow illegally to public officials. The U.K. in 2010 passed a law called the Bribery Act, a close cousin to the U.S. Foreign Corrupt Practices Act, which bars public companies from bribing government officials to gain an advantage over competitors.

In 2010, as Exxon's chief executive, Mr. Tillerson lobbied against a new federal requirement that required energy and mining companies to disclose payments to foreign governments, arguing that it put U.S. companies at a disadvantage to foreign rivals. Last year, U.S. lawmakers scrapped the requirement , which was part of the Dodd-Frank law.

Interest in potential oil riches off Liberia's shores blossomed in the mid-2000s as the country emerged from a long civil war. During a chaotic transitional period before the 2006 election of Ms. Sirleaf, there was a scramble among Liberians, including some members of the government, to get a piece of the possible oil-exploration boom, say people involved in Liberia's oil industry.

"There were a lot of suggestions that contracts were not signed in the way they would be under a more stable government," said Jeffrey Wood, a U.S. lawyer who has worked with the Liberian government on natural-resource oversight and helped it with the Exxon deal.

In 2005, when the contest for oil rights was gaining steam, a company called Broadway Consolidated PLC, registered on the Isle of Man, signed a contract with Liberia's state-run oil company, the National Oil Company of Liberia, or Nocal, for drilling rights to an offshore expanse known as Block 13. Another company, Oranto Petroleum Ltd., also obtained licenses from Nocal. Oranto said in a written statement that "multiple inquiries have concluded that Oranto's activities in Liberia were carried out in accordance with all laws and regulatory requirements." Broadway is now defunct.

Broadway investors have included an energy fund operated by RAB Capital, a U.K. investment fund. Several Liberians have also been linked to the company, including David Jallah, a politically connected lawyer listed in corporate filings as a shareholder. Mr. Jallah, the former dean of the country's law school, didn't respond to requests for comment.

Adolph Lawrence, a Liberian lawmaker who was chairman of the committee that oversees the country's oil-and-gas deals, once held contracts giving him the right to buy a stake in Broadway, according to a 2011 document related to a separate, scuttled transaction. He held his position at the time of the Exxon deal, although it isn't known whether he retained his Broadway interests after he began serving as a lawmaker in 2012. Mr. Lawrence didn't respond to requests for comment.

Jonathan Mason, minister of Liberia's lands, mines and energy department in the 2000s, helped launch several companies in the 1990s whose names included the word Broadway, according to documents reviewed by the Journal. In an interview, Mr. Mason said he worked as a consultant for Broadway Consolidated but never owned a stake in it.

The discovery of an enormous oil field off nearby Ghana's shores in 2007 touched off a rush to explore for oil off West Africa's coast, including in Liberia. Exxon, Chevron Corp. and other Western companies angled to gain access to potentially lucrative concessions. They struggled to compete with state-backed firms from China and Russia that often didn't adhere to the same anticorruption standards as the U.S. and European Union.

Chevron, the second-largest U.S. oil company, struck first in Liberia, inking a deal in 2010 with Oranto for three deep-water blocks. Chevron spokeswoman Isabel Ordóñez said the company applies "full due diligence" to all potential partners and follows all laws in the countries where it operates, which it did in Liberia.

A 2011 investigation by Liberia's General Auditing Commission found that in 2006 and 2007, Nocal disbursed more than $100,000 to legislators. Some members of Nocal's board had concerns the payments were made "to influence the passage of the petroleum contracts" of Broadway and Oranto and were "a form of bribery," the commission said.

Chevron had concerns similar to Exxon's about securing Block 13, including about the owners of Broadway, which had changed its name to Peppercoast Petroleum, according to a former Liberian government oil minister and a person familiar with Chevron's review of the block.

Peppercoast, meanwhile, had failed to move ahead on an exploration program. The Liberian government pushed it to sell.

Canadian Overseas Petroleum Ltd., a Calgary, Canada, oil company, began negotiating to purchase a stake in the block from Peppercoast. But Nocal blocked the bid amid concerns that Canadian Overseas didn't have experience drilling deep-water wells, according to Mr. Neyor.

Enter Exxon. In December 2011, a team of Exxon officials met in London with several Liberian government officials, including then-President Sirleaf's son, Mr. Sirleaf, who was soon to be appointed chairman of Nocal, according to documents reviewed by the Journal and people who attended the meeting.

Exxon officials outlined their concerns about potential corruption tied to the block, according to the people and a PowerPoint presentation made by Exxon at the meeting.

Exxon detailed a two-step transaction: Canadian Overseas would purchase the rights to Block 13 from Peppercoast, then Exxon would buy a controlling stake in the block from Canadian Overseas, according to the people and the PowerPoint presentation. Putting Canadian Overseas in the middle of the transaction would allow Exxon to avoid dealing directly with Peppercoast.

Canadian Overseas said in a written statement that it "adheres to the highest levels of corporate governance as a public company," and that it "carried out meticulous due diligence over a two-year period before completing the Liberian acquisition and sought legal advice in the UK, Liberia, Canada and United States. No evidence was ever found to suggest Liberian government officials were linked to shareholdings in Peppercoast."

Mr. Wood, who attended the meeting on behalf of the Liberians, said Exxon was "extremely careful to be seen as doing things that were correct" in the deal.

Sixteen months later, the Liberian government approved a deal that public and internal Liberian records show was close to what had been outlined in the London hotel, with an important added detail outlined in the production-sharing agreement.

Exxon insisted that it wouldn't pay any cash to Peppercoast, nor would partner Canadian Overseas Petroleum. Instead, the money for the deal would go to the state oil company, Nocal, which had agreed to act as an intermediary. Nocal secured a short-term loan from an African bank called Ecobank Transnational Inc. to pay Peppercoast to transfer the oil block. On April 5, 2013, Nocal used the loan to pay $68.5 million to Peppercoast, which transferred Block 13 to Canadian Overseas, which then transferred an 80% stake to Exxon, bank records and deal documents show.

That same day, Exxon paid $120 million from a New York bank account to the African bank used by Nocal, satisfying the short-term loan, the documents show. The Liberian government got $45 million from the deal, Nocal got $5 million as a bonus, and the African bank received $1.5 million in fees, the documents show. A spokeswoman for EcoBank didn't respond to a request for comment.

Weeks after the money was transferred, Nocal made payments totaling more than $500,000 to more than 100 Nocal employees, according to Mr. Sirleaf and bank records provided by Global Witness. He received $35,000, the bank records show.

There is no indication Exxon, Mr. Tillerson or Canadian Overseas was aware of the payments.

Jeffrey Neiman, a former federal prosecutor at law firm Marcus Neiman & Rashbaum LLP who specializes in white-collar crime and U.S. anticorruption laws, said federal investigators often take interest when corporate money reaches politicians in high-risk jurisdictions such as Liberia. "However, criminal liability only attaches if Exxon or its representatives knew about corrupt payments and somehow participated," he said.

The Liberian government, under newly elected president George Weah, is reviewing Nocal's audit reports and the bidding processes that led to the auctioning of oil blocks, said Eugene Nagbe, Liberia's minister of information, culture and tourism, in an email. "If any corruption activity is found to have taken place, the perpetrators will be brought to justice," he said.

Mr. Sirleaf, who said he has worked for 24 years in finance for several U.S. banks, stands by the deal.

"It was the right thing to do at the right time, and it still is," he said. He compared the payments to year-end bonuses and said they were paid to all Nocal employees.

It was ultimately not the right deal for Exxon. The well it drilled to test the site's prospects came up dry. Exxon gave up its rights to the prospect last year.

Write to Scott Patterson at scott.patterson@wsj.com and Bradley Olson at Bradley.Olson@wsj.com

Credit: By Scott Patterson, Bradley Olson and James V. Grimaldi

Subject: Equity stake; Contract negotiations; Criminal investigations; Criminal liability; Public officials; Corruption; Competition

Location: United States--US United Kingdom--UK Liberia

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Global Witness; NAICS: 813319

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Mar 30, 2018

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2019890300

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2019890300?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-03-30

Database: The Wall Street Journal

Exxon, Qatar in Talks on U.S. Shale Deal; Discussions show risks amid Mideast rift, depth of interest in U.S. shale

Author: McFarlane, Sarah; Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]10 Apr 2018: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

Exxon Mobil Corp. is in talks with Qatar over a partnership that could see the Middle Eastern nation owning U.S. gas, people familiar with the matter said.

The potential deal could lead to the state energy giant Qatar Petroleum investing in Exxon's vast U.S. gas resources, extending from West Texas to North Dakota, according to the people, as both seek to deepen an already lucrative relationship each needs to face off current challenges. It could take the shape of a joint venture in which Qatar partners or invests in future wells with Exxon subsidiary XTO Energy, these people said.

Qatar wants to broaden its investments outside the Middle East and curry favor with Washington amid an economic blockade from Saudi Arabia and its Gulf allies. Qatar's leader is due to meet U.S. President Donald Trump on Tuesday.

Exxon's operations in Qatar are hugely profitable and it also needs Doha's financial support and signoff to proceed on a massive $10 billion natural gas-export project in East Texas. The development is critical to allowing the company to find markets abroad for its U.S. gas bounty as prices come under pressure domestically.

For Exxon, the talks also underscore the challenge many Western companies face as they seek to navigate growing rifts in the Middle East, where several countries are embarking on multibillion-dollar global expansions to diversify their economies.

"The relationship between Exxon Mobil and its affiliation with Qatar is deep, symbiotic and of significant strategic importance," said Ehsan Khoman, head of research for the Middle East and North Africa at Bank of Tokyo-Mitsubishi UFJ. "From Exxon's perspective, Qatar is by far its most significant international investment."

The talks could still break down and no deal has been finalized, the people said. An Exxon spokeswoman declined to comment. Qatar Petroleum didn't immediately respond to a request for comment.

The fate of the Golden Pass gas export facility in East Texas could hinge on a deal. The terminal is mainly owned by Qatar Petroleum, which has held off from agreeing to develop it with Exxon until it owns U.S. natural gas supplies.

"We are not going to proceed with that without upstream assets in the U.S.," Saad Sherida al-Kaabi, QP's chief executive, said in an interview.

While the world has been focused on rising U.S. oil production, gas output is also expected to hit record levels in 2018, according to the U.S. Energy Information Administration. Exxon wants to triple its production in the red-hot Permian basin in West Texas and New Mexico to 600,000 barrels a day of oil and natural gas by 2025.

As gas production from the region begins to exceed existing pipeline capacity, natural-gas prices from the region have plunged this year. Some analysts say this may have a knock-on effect on oil production for many companies. In the Permian basin, most natural gas is produced as a byproduct of drilling for oil. In the past, producers could flare the gas, or burn it at the wellhead, but that practice is set to fallout of favor due to pressure from state regulators and environmental groups. As crude output from the Permian basin continues to boom, operators who cannot find a destination for their gas may have to curtail their growth plans. Many are racing to avoid that outcome now.

Qatar is already one of Exxon's most profitable partnerships. The tiny country produces more than a quarter of the world's liquefied natural gas. In 2018, Qatar will account for about 25% of Exxon's after-tax cash flow and 16% of its oil and gas production, according to estimates from analytical firm GlobalData.

Outside of production in Qatar, Exxon and Qatar Petroleum have recently signed deals to explore for oil and gas off the coast of Cyprus and the two jointly bid for access to drilling rights in Brazil.

Qatar also is interested in investing in Exxon's Mozambique operations, and the two have discussed the possibility of setting up a joint trading operation to market liquefied natural gas, according to people familiar with the matter.

But while Exxon is eager to strengthen its ties to Qatar, the company also wishes to keep options open with Doha's antagonists. Saudi Arabia, the United Arab Emirates, Bahrain and Egypt have enforced an economic blockade against Qatar since June 2017 to try to pressure Doha to scale back its ties with Iran, the Muslim Brotherhood and Turkey.

Exxon has been in discussions with Saudi Arabia on potential partnerships, one of the people familiar with the matter said. It already is in the final stages of evaluating plans to build a petrochemical complex in Texas in a joint-venture with state chemical company Saudi Basic Industries Corp.

Like Qatar, Saudi Arabia wants to gain a foothold in U.S. shale , while Crown Prince Mohammed bin Salman met with a number of U.S. technology, entertainment and energy companies last week to discuss possible investments .

For Qatar, owning U.S. gas assets is one way to court Washington. Qatar's emir, Sheikh Tamim bin Hamad Al-Thani, is due to meet with President Trump Tuesday to discuss ways to strengthen ties between the two countries and advance common security and economic priorities, the White House said.

The departure of former Exxon Chief Executive Rex Tillerson as the U.S. Secretary of State has clouded the picture for Qatar, one person familiar with the matter said. While Mr. Tillerson played no role in discussions between Exxon and Qatar, he was seen as sympathetic to Qatar in its dispute with Saudi Arabia and its allies, the person said.

Write to Sarah McFarlane at sarah.mcfarlane@wsj.com and Bradley Olson at Bradley.Olson@wsj.com

Credit: By Sarah McFarlane and Bradley Olson

Subject: Petroleum production; Embargoes & blockades; Energy industry; Natural gas

Location: North Africa North Dakota Mozambique Middle East Turkey Qatar Egypt East Texas Iran Brazil Bahrain Cyprus Texas New Mexico United States--US Saudi Arabia United Arab Emirates West Texas

People: Trump, Donald J Mohamed bin Salman, Prince of Saudi Arabia Tillerson, Rex W

Company / organization: Name: Qatar Petroleum; NAICS: 211111; Name: Energy Information Administration; NAICS: 926130; Name: Exxon Mobil Corp; NAICS: 211 111, 447110; Name: XTO Energy Inc; NAICS: 211111; Name: Saudi Basic Industries Corp; NAICS: 551112; Name: Society of Muslim Brothers; NAICS: 813110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Apr 10, 2018

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2023374547

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2023374547?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-04-10

Database: The Wall Street Journal

Exxon, Qatar in Talks on U.S. Shale Deal; Discussions show risks amid Mideast rift, depth of interest in U.S. shale

Author: McFarlane, Sarah; Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]11 Apr 2018: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

Exxon Mobil Corp. is in talks with Qatar over a partnership that could see the Middle Eastern nation owning U.S. gas, people familiar with the matter said.

The potential deal could lead to the state energy giant Qatar Petroleum investing in Exxon's vast U.S. gas resources, extending from West Texas to North Dakota, according to the people, as both seek to deepen an already lucrative relationship each needs to face off current challenges. It could take the shape of a joint venture in which Qatar partners or invests in future wells with Exxon subsidiary XTO Energy, these people said.

Qatar wants to broaden its investments outside the Middle East and curry favor with Washington amid an economic blockade from Saudi Arabia and its Gulf allies. Qatar's leader is due to meet U.S. President Donald Trump on Tuesday.

Exxon's operations in Qatar are hugely profitable and it also needs Doha's financial support and signoff to proceed on a massive $10 billion natural gas-export project in East Texas. The development is critical to allowing the company to find markets abroad for its U.S. gas bounty as prices come under pressure domestically.

For Exxon, the talks also underscore the challenge many Western companies face as they seek to navigate growing rifts in the Middle East, where several countries are embarking on multibillion-dollar global expansions to diversify their economies.

"The relationship between Exxon Mobil and its affiliation with Qatar is deep, symbiotic and of significant strategic importance," said Ehsan Khoman, head of research for the Middle East and North Africa at Bank of Tokyo-Mitsubishi UFJ. "From Exxon's perspective, Qatar is by far its most significant international investment."

The talks could still break down and no deal has been finalized, the people said. An Exxon spokeswoman declined to comment. Qatar Petroleum didn't immediately respond to a request for comment.

The fate of the Golden Pass gas export facility in East Texas could hinge on a deal. The terminal is mainly owned by Qatar Petroleum, which has held off from agreeing to develop it with Exxon until it owns U.S. natural gas supplies.

"We are not going to proceed with that without upstream assets in the U.S.," Saad Sherida al-Kaabi, QP's chief executive, said in an interview.

While the world has been focused on rising U.S. oil production, gas output is also expected to hit record levels in 2018, according to the U.S. Energy Information Administration. Exxon wants to triple its production in the red-hot Permian basin in West Texas and New Mexico to 600,000 barrels a day of oil and natural gas by 2025.

As gas production from the region begins to exceed existing pipeline capacity, natural-gas prices from the region have plunged this year. Some analysts say this may have a knock-on effect on oil production for many companies. In the Permian basin, most natural gas is produced as a byproduct of drilling for oil. In the past, producers could flare the gas, or burn it at the wellhead, but that practice is set to fallout of favor due to pressure from state regulators and environmental groups. As crude output from the Permian basin continues to boom, operators who cannot find a destination for their gas may have to curtail their growth plans. Many are racing to avoid that outcome now.

Qatar is already one of Exxon's most profitable partnerships. The tiny country produces more than a quarter of the world's liquefied natural gas. In 2018, Qatar will account for about 25% of Exxon's after-tax cash flow and 16% of its oil and gas production, according to estimates from analytical firm GlobalData.

Outside of production in Qatar, Exxon and Qatar Petroleum have recently signed deals to explore for oil and gas off the coast of Cyprus and the two jointly bid for access to drilling rights in Brazil.

Qatar also is interested in investing in Exxon's Mozambique operations, and the two have discussed the possibility of setting up a joint trading operation to market liquefied natural gas, according to people familiar with the matter.

But while Exxon is eager to strengthen its ties to Qatar, the company also wishes to keep options open with Doha's antagonists. Saudi Arabia, the United Arab Emirates, Bahrain and Egypt have enforced an economic blockade against Qatar since June 2017 to try to pressure Doha to scale back its ties with Iran, the Muslim Brotherhood and Turkey.

Exxon has been in discussions with Saudi Arabia on potential partnerships, one of the people familiar with the matter said. It already is in the final stages of evaluating plans to build a petrochemical complex in Texas in a joint-venture with state chemical company Saudi Basic Industries Corp.

Like Qatar, Saudi Arabia wants to gain a foothold in U.S. shale , while Crown Prince Mohammed bin Salman met with a number of U.S. technology, entertainment and energy companies last week to discuss possible investments .

For Qatar, owning U.S. gas assets is one way to court Washington. Qatar's emir, Sheikh Tamim bin Hamad Al-Thani, is due to meet with President Trump Tuesday to discuss ways to strengthen ties between the two countries and advance common security and economic priorities, the White House said.

The departure of former Exxon Chief Executive Rex Tillerson as the U.S. Secretary of State has clouded the picture for Qatar, one person familiar with the matter said. While Mr. Tillerson played no role in discussions between Exxon and Qatar, he was seen as sympathetic to Qatar in its dispute with Saudi Arabia and its allies, the person said.

Write to Sarah McFarlane at sarah.mcfarlane@wsj.com and Bradley Olson at Bradley.Olson@wsj.com

Related

* U.S. Presses Allies to Back a Military Strike on Syria

* U.S. Worries Qatar Is Drifting Toward Iran

Credit: By Sarah McFarlane and Bradley Olson

Subject: Petroleum production; Embargoes & blockades; Energy industry; Natural gas

Location: North Africa Middle East Mozambique North Dakota Turkey East Texas Egypt Qatar Iran Bahrain Brazil Syria Cyprus Texas New Mexico United States--US Saudi Arabia United Arab Emirates West Texas

People: Trump, Donald J Mohamed bin Salman, Prince of Saudi Arabia Tillerson, Rex W

Company / organization: Name: Qatar Petroleum; NAICS: 211111; Name: Energy Information Administration; NAICS: 926130; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: XTO Energy Inc; NAICS: 211111; Name: Saudi Basic Industries Corp; NAICS: 551112; Name: Society of Muslim Brothers; NAICS: 813110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Apr 11, 2018

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United Sta tes, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2023583269

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2023583269?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-04-11

Database: The Wall Street Journal

Business News: Exxon, Qatar Explore Gas Pact

Author: McFarlane, Sarah; Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]11 Apr 2018: B.3.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

Exxon Mobil Corp. is in talks with Qatar over a partnership that could see the Middle Eastern nation owning U.S. natural gas, people familiar with the matter said.

The potential deal could lead to the state energy giant Qatar Petroleum investing in Exxon's vast U.S. gas resources, extending from west Texas to North Dakota, according to the people, as both seek to deepen an already lucrative relationship each needs to contend with current challenges. It could take the shape of a joint venture in which Qatar forms a partnership with Exxon subsidiary XTO Energy, or invests in future wells with XTO, these people said.

Qatar wants to broaden its investments outside the Middle East and curry favor with Washington amid an economic blockade from Saudi Arabia and its Gulf allies. Qatar's leader met with President Donald Trump on Tuesday in Washington.

Exxon's operations in Qatar are hugely profitable, and it also needs Doha's financial support and signoff to proceed on a $10 billion natural-gas-export project in east Texas. The development is critical to allowing the company to find markets abroad for its U.S. gas bounty as prices come under pressure domestically.

For Exxon, the talks also underscore the challenge many Western companies face as they seek to navigate growing rifts in the Middle East, where several countries are embarking on multibillion-dollar global expansions to diversify their economies.

"The relationship between Exxon Mobil and its affiliation with Qatar is deep, symbiotic and of significant strategic importance," said Ehsan Khoman, head of research for the Middle East and North Africa at Bank of Tokyo-Mitsubishi UFJ. "From Exxon's perspective, Qatar is by far its most significant international investment."

The talks could still break down, and no deal has been completed, the people said. An Exxon spokeswoman declined to comment. Qatar Petroleum didn't immediately respond to a request for comment.

The fate of the Golden Pass gas-export facility in east Texas could hinge on a deal. The terminal is mainly owned by Qatar Petroleum, which has held off from agreeing to develop it with Exxon until it owns U.S. natural-gas supplies.

"We are not going to proceed with that without upstream assets in the U.S., "Saad Sherida al-Kaabi, QP's chief executive, said in an interview.

While the world has been focused on rising U.S. oil production, gas output is also expected to hit record levels in 2018, according to the U.S. Energy Information Administration. Exxon wants to triple its production in the red-hot Permian Basin in west Texas and New Mexico to 600,000 barrels a day of oil and natural gas by 2025.

As gas production from the region begins to exceed existing pipeline capacity, natural-gas prices from the region have plunged this year. Some analysts say this might have a knock-on effect on oil production for many companies.

Qatar is already one of Exxon's most profitable partnerships. The tiny country produces more than one-quarter of the world's liquefied natural gas. In 2018, Qatar will account for about 25% of Exxon's after-tax cash flowand 16% of its oil and gas production, according to estimates from analytical firm GlobalData.

For Qatar, owning U.S. gas assets is one way to court Washington. Qatar's emir, Sheikh Tamim bin Hamad Al-Thani, met with Mr. Trump Tuesday to discuss ways to strengthen ties between the two countries, the White House said.

---

An Energy Alliance

That Extends Back

For Decades

1955: Mobil Oil Co. of Qatar registered

1984: Qatar gas firm QG1 created to produce liquefied natural gas. Mobil has 10% stake

1997: Qatar exports first LNG shipment

1999: Exxon buys Mobil in $80 billion deal. Former Exxon Chief Executive Lee Raymond privately joked that the price tag was worth it for Qatar alone

2006: Qatar becomes world's largest LNG exporter

2009: Golden Pass LNG import terminal built on Texas Gulf Coast 70% QP-owned, 30% Exxon Mobil-owned

2010: Relationship strained after Exxon Papua New Guinea LNG undercut Qatar to win Taiwan gas contract

April 2017: Golden Pass terminal approved by Department of Energy to export LNG

April 2017: Exxon, QP sign exploration- and production-sharing contract with Cyprus

June 2017: Saudi Arabia, U.A.E., Bahrain and Egypt announce blockade against Qatar

March 2018: Exxon, QP win Brazil exploration rights as part of a consortium

Sources: company websites; news reports; Private Empire (book)

Credit: By Sarah McFarlane and Bradley Olson

Subject: Petroleum production; Embargoes & blockades; Natural gas; Project finance; LNG

Location: North Africa Middle East North Dakota Egypt Qatar Papua New Guinea Permian Basin Bahrain Brazil Cyprus Texas New Mexico United States--US Saudi Arabia Taiwan

People: Trump, Donald J

Company / organization: Name: Department of Energy; NAICS: 926130; Name: Qatar Petroleum; NAICS: 211111; Name: Energy Information Administration; NAICS: 926130; Name: Energy Alliance; NAICS: 813910; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: XTO Energy Inc; NAICS: 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2018

Publication date: Apr 11, 2018

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2023636201

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2023636201?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-04-11

Database: The Wall Street Journal

Big Oil Firms Hold Back on Drilling; Despite higher prices, Exxon, Chevron, Shell spend carefully under investor pressure

Author: Olson, Bradley; Kent, Sarah

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Apr 2018: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

The world's biggest oil companies are awash in cash, thanks to rising crude prices. But few, if any, are going on spending sprees, even as the prospect of a global oil shortage looms.

Western energy giants including Exxon Mobil Corp., Chevron Corp. and Royal Dutch Shell PLC just posted their best first-quarter profits in years, with most besting a time when crude sold for more than $100 a barrel.

Combined, profits at Exxon, Chevron, Shell and Total were $16.8 billion, the highest since 2014.

Yet despite a 50% surge in prices since last year, drilling budgets at the largest oil-and-gas companies are up only about 7%, according to consultancy Wood Mackenzie.

Large publicly traded oil companies are moving carefully because they are under pressure from investors after spending heavily over the past decade, when prices were higher, only to generate underwhelming returns.

"The newfound religion and confidence in the sector is, to say the least, fragile," said Shell Chief Executive Ben van Beurden. "We'll need to show a little longer that we actually mean what we say in terms of capital discipline."

By contrast, smaller U.S. shale producers--especially those backed by private equity--have seized on the opportunity to ramp up drilling and gain market share.

Two years ago, the top 30 U.S. companies accounted for almost 64% of production in the contiguous U.S. That percentage has fallen to 60% this year, according to consultancy Rystad Energy.

"Big companies are still cutting coupons to show that they can live within their means," said Adam Flikerski, managing partner at BlackGold Capital Management LP, an asset manager that specializes in oil and gas lending. "Like technology companies, the smaller players are still rewarded for growth."

The wary response from the world's biggest producers comes as a global oil glut that has hung over the industry for the past four years finally appears to be withering away. Without stepped-up spending on new oil production, the International Energy Agency warns, the world could flip from abundance to supply crunch by 2020.

Still, many investors in publicly traded oil and gas producers are pressing executives not to sow the seeds of another price crash with excessive growth. Their apathy about oil's rally has shown.

While the price of Brent crude, the international oil benchmark, is up around 11% this year, a leading barometer of energy stocks, the MSCI World Energy Index, is only up around 4%. A number of companies have performed even worse. Exxon is down 3.9%.

The pace of share buybacks has been a key factor for performance so far. ConocoPhillips shares rose 3% Thursday after the company disclosed it had repurchased about $500 million in stock, as it reported that quarterly profits jumped 52% to $888 million.

Exxon fell 3.4% Friday after announcing that it hasn't yet reinstated its longstanding program for buying back shares.

Exxon's net income rose 16% to $4.7 billion, but production fell 6% to below 4 million barrels a day after an earthquake in Papua New Guinea knocked out natural gas production in the country. Revenue rose 16% to $68 billion.

Although the company posted its highest cash flow since 2014, it still fell short of analyst expectations for the second straight quarter and shares fell 3.4% Friday.

Chevron's profit rose 36% to $3.6 billion, while output rose 6.5% to the equivalent of about 2.9 million barrels a day. Its shares rose 1.8% Friday after it reported revenue surged 13% to about $38 billion.

Executives at Exxon and Chevron said they continue to weigh whether to reinstate share buybacks, a longstanding practice they discontinued after the 2014 price collapse, but said paying dividends and reinvesting in attractive prospects are higher priorities.

"Buybacks remain on the table," said Jeff Woodbury, Exxon's vice president of investor relations. "We are intensely focused on value."

Shell's U.K. shares fell 0.7% on Thursday after the company missed cash flow expectations and failed to give more clarity on when it would begin buying back $25 billion in stock, as it reported quarterly profits rose by two-thirds to nearly $6 billion.

One reason for caution among larger companies is that some analysts, investors and executives still lack faith that crude prices will remain elevated through the end of the year.

"There's potential weakness on the horizon in oil prices," said Tom Ellacott, senior vice president for corporate research at Wood Mackenzie. "It's still quite an uncertain environment."

Smaller U.S. producers are exercising less caution, as many of them still have business models akin to startups. They must invest in new wells to prove the viability of new prospects.

Those companies are a major reason why forecasters say U.S. oil output may reach 11 million barrels a day by the end of the year, surpassing the output of Saudi Arabia.

In February, companies that aren't among the top U.S. crude producers made up almost half the permits approved for new drilling, according to data and analytics firm DrillingInfo. In the past six months, those operators accounted for about 42% of permits. Permits are generally a useful barometer for future drilling activity.

Many such companies will be affected by shortages in labor and trucking, as well as pipeline bottlenecks in the Permian basin in West Texas and New Mexico, the heart of U.S. drilling activity. Those challenges could curtail production by about 400,000 barrels a day, but output will continue surging as many companies have secured the supplies and contracts needed to meet their goals, said Artem Abramov, vice president of analysis at Rystad.

"We've got a completely new generation of small, private players with very ambitious growth plans in the Permian basin," he said. "Those plans will continue."

Write to Bradley Olson at Bradley.Olson@wsj.com and Sarah Kent at sarah.kent@wsj.com

More

* Heard on the Street: The Incredible Shrinking Exxon

* Oil Treads Water as U.S. Nears Iran Decision

* Companies Feel the Impact of Rising Oil Prices

* The Next Winners From the Oil Rally (April 23)

* In the Oil Patch, Bigger Is No Longer Better (April 2)

* How Tillerson's Exxon Designed an Oil Deal to Skirt Anticorruption Scrutiny (March 30)

Credit: By Bradley Olson and Sarah Kent

Subject: Petroleum production; Corporate profits; Investments; Crude oil prices; Discipline; Executives; Cash flow; Natural gas utilities

Location: United Kingdom--UK Iran France Gulf of Mexico New Mexico United States--US Saudi Arabia India West Texas

People: van Beurden, Ben Pouyanne, Patrick

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: Total SA; NAICS: 211111, 324110, 447190; Name: ConocoPhillips Co; NAICS: 211111; Name: Chevron Corp; NAICS: 211111, 324110; Name: BlackGold Capital Management LP; NAICS: 523920; Name: International Energy Agency; NAICS: 541720, 926130, 928120; Name: BP PLC; NAICS: 211111, 324110, 447110; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Drilling Info Inc; NAICS: 511140, 511210

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Apr 27, 2018

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2031403218

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2031403218?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-04-28

Database: The Wall Street Journal

The Incredible Shrinking Exxon; Oil majors must resign themselves to easier pickings but lower returns as a result of the shale revolution, as Exxon Mobil's results illustrate

Author: Jakab, Spencer

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 Apr 2018: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

Exxon Mobil put an exclamation point on what ails big oil on Friday.

Never mind the immediate reaction to its slightly tepid first-quarter results. Despite just announcing its 36th annual dividend increase in a row, the total shareholder return of the world's largest publicly held oil company is flat over the past year even as crude prices have rallied by over 50%.

One needs to look back a bit farther in time to explain that dichotomy. A decade ago, at the dawn of the shale boom, Exxon's stock-market value could have paid for tech giants Apple, Amazon and what was then called Google and had $100 billion in change left over. The energy sector made up 14% of the S&P 500. Today it is barely 6% and Exxon is worth less than half as much of any one of those technology titans individually.

Demand isn't the issue. Global crude consumption is up by 16% over a decade and natural-gas demand has risen even more. Instead, it is the economics of producing oil and gas that has changed.

For decades, giant oil companies such as Exxon, Chevron, BP and Shell have been blocked from the most lucrative oil fields, which are controlled by state-owned firms like Saudi Aramco. The shale revolution in North America gave private companies an opening to boost production with much less risk than in the past.

Exxon Chief Executive Darren Woods put it well last year: "That part of the business isn't in discovery mode, it's in extraction mode."

But a lower bar means lower returns too. Exxon just registered its best return on invested capital since 2014, the last time crude prices reached triple digits, yet 2017's figure was barely a quarter of what it managed a decade ago.

Exxon is still playing to its strengths as a capital allocator with promising megaprojects in Guyana, Brazil and Papua New Guinea. It also is integrated, so refining and chemical profits can smooth out the cyclicality of commodity production.

Taking big exploration risks still pays off, but now Exxon is taking fewer of them. The result is the rewards to shareholders are more modest. Get used to it.

Write to Spencer Jakab at spencer.jakab@wsj.com

Credit: By Spencer Jakab

Subject: Acquisitions & mergers; Energy industry

Location: Guyana Brazil North America Papua New Guinea

People: Woods, Darren

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Google Inc; NAICS: 334310, 519130; Name: Saudi Arabian Oil Co; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Apr 27, 2018

column: Heard on the Street

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2031471774

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2031471774?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-04-28

Database: The Wall Street Journal

Exxon Pledges to Cut Methane Emissions 15% by 2020; Plan, which also includes 25% flaring reductions, is latest in effort by oil companies to voluntarily lower releases of the potent greenhouse gas

Author: Elliott, Rebecca; Kent, Sarah

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]23 May 2018: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

Exxon Mobil Corp. plans to reduce methane emissions 15% by 2020, the latest in a series of pledges by major oil companies to voluntarily curtail releases of the potent greenhouse gas.

The Texas-based company also said it intends to cut flaring, or burning of natural gas, by 25% over the same period. Those efforts likely will be concentrated in West Africa. Both reduction targets are compared with 2016 levels.

Exxon's move Wednesday, a week before its annual meeting May 30, comes as pressure from investors mounts on big oil companies to not only disclose climate-related business risks, but also take action to reduce emissions linked to global warming.

Companies have also come under fire from activists for flaring natural gas, which can increase air pollution, during oil and gas production.

"We have a longstanding commitment to improve efficiency and mitigate greenhouse gas emissions," said Exxon Chief Executive Darren Woods in a statement. "Today's announcement builds on that commitment and will help further drive improvements in our business."

BP PLC said in April that it will keep its emissions flat out to 2025 even as it grows. The company set a target to cut 3.5 million tons of greenhouse-gas emissions from its operations over the period, focusing on reducing methane emissions as a key part of this. Royal Dutch Shell PLC last year announced a plan to halve the company's carbon footprint--including emissions caused by drivers who burn Shell fuel--by 2050.

Much of the pressure to address climate change has come from shareholders. Last year, a group of investors with roughly $30 trillion under management launched a five-year effort to push the world's biggest corporate polluters to reduce emissions and improve transparency and governance around climate.

At Shell's annual meeting Tuesday, investors with nearly $8 trillion under management called on the company to go beyond its already ambitious plans to curb emissions and set firm targets. Exxon and Chevron Corp. are also expected to face questions on the subject at their annual meetings next week.

"Investors are not going to let go," said Mindy Lubber, CEO and president of Ceres, a Boston-based nonprofit group that works with investors to promote sustainable business practices. "The level of effort going in is exponentially more substantial than last year or the year before."

Companies have invested heavily in natural gas in recent years, touting the fuel as a greener alternative to coal, which emits far more carbon dioxide when converted to electricity. However, that does not account for methane, which is the primary component of natural gas and often leaks into the atmosphere as the resource is extracted and transported.

The Environmental Defense Fund, a nonprofit environmental advocacy group that has been working to highlight methane and flaring issues, said it supported Exxon's plan to cut emissions, but called for "greater ambition."

"In a carbon-constrained world, oil and gas industry leaders should seek to virtually eliminate emissions of this highly-potent greenhouse gas," said Matt Watson, EDF's associate vice president for climate and energy, in a statement.

Write to Rebecca Elliott at rebecca.elliott@wsj.com and Sarah Kent at sarah.kent@wsj.com

Credit: By Rebecca Elliott and Sarah Kent

Subject: Greenhouse gases; Carbon; Greenhouse effect; Climate change; Nonprofit organizations; Natural gas

Location: Texas West Africa

People: Woods, Darren

Company / organization: Name: Environmental Defense Fund; NAICS: 541720, 813312; Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: BP PLC; NAICS: 211111, 324110, 447110; Name: Chevron Corp; NAICS: 211111, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: May 23, 2018

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2042822931

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2042822931?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-06-13

Database: The Wall Street Journal

Brazil Hosts Major Auction for Oil Fields; Consortium formed by Exxon Mobil, Statoil Brasil and Portugal's Petrogal wins largest block

Author: Magalhães, Luciana; Trevisani, Paulo

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]07 June 2018: n/a.

ProQuest document link

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RIO DE JANEIRO--The world's largest energy companies lined up Thursday for a major auction of coveted Brazilian oil fields, even as Brazil's government rolled back some market-friendly policies that would have made its oil industry more competitive.

Bidders offered more than $800 million plus large shares of so-called profit oil to Brazil's government for the right to explore three blocks in the Campos and Santos basins, thought to hold about 14 billion barrels of oil.

A consortium formed by Exxon Mobil Corp., Statoil Brasil--a unit of Norway's Equinor ASA--and Portugal's Petrogal won the largest block, known as Uirapuru, with a $679.4 million signing bonus plus 75.4% of profit oil, an offer higher than the minimum bid by 240%. Brazil's state-controlled Petróleo Brasileiro SA, or Petrobras, exercised its right to be the operating partner, with a 30% share of the consortium.

It was the government's fourth auction for areas in the pre-salt region of southeastern Brazil where as much as 100 billion barrels of crude are believed to be locked under salt layers far beneath the seabed.

The smallest block on sale, known as Itaimbezinho, failed to attract bidders. Still, the final result was within market expectations.

"Competition was very high," Brazil's top energy regulator, Decio Oddone, said to reporters after the auction. "The Brazilian society will appropriate 90% of pre-salt proceeds."

The pre-salt reserves were discovered in 2006, but private companies were kept away and production delayed by rules that required Petrobras to be the operating partner with at least a 30% stake in any consortium in the region.

The government eased those rules last year to allow other companies to work without Petrobras if the state giant declined to participate in a project, although Petrobras still has the option to be the operator in areas it chooses.

The auction comes just days after Brazilian truckers went on strike to protest diesel prices that have soared along with international oil prices. The strike brought commerce to a standstill and forced the government to reinstate price controls for diesel using tax cuts and other subsidies, which it estimated will cost $2.5 billion this year .

The decision prompted the resignation of Petrobras's market-friendly chief executive, Pedro Parente, who had relied on the market pricing policy of the past two years to improve results and lower debt at the state oil company.

Despite wavering over fuel prices, the government has a history of respecting contracts in the oil industry, leading analysts to believe companies securing blocks in the pre-salt would avoid any potential backpedaling in the future.

Exxon Mobil, which is becoming one of the largest players in pre-salt, noted that its latest winning bid brings to 25 the total blocks it has in offshore Brazil.

"Uirapuru is a uniquely valuable block that represents tremendous opportunity for us," the company said in a press release. "We look forward to exploring and developing [Brazil's] world-class resources."

Some analysts have been warning that high bids for pre-salt blocks pose risks for oil companies.

"High interest for the pre-salt is leading to very risky bets," said Juliana Miguez of Wood Mackenzie, an energy consulting group. She warned projects could become unprofitable if production doesn't turn out as expected, "but based on pre-salt estimates, they are feasible."

The long-term nature of the projects is also making bidders play down near-term concerns, analysts say.

"The exploration cycle can last two governments," or eight years, said Helder Queiroz Pinto Junior, an economics professor and former oil regulator. "The companies focus on the geological conditions, and these are promising areas."

Strong competition led Petrobras to increase offers on two oil fields. The new CEO, Ivan Monteiro, said the company is prepared to make higher bids.

"We continue with the premise of increasing the company's exploratory portfolio," he said. "We came from two very difficult years."

Petrobras's participation is a sign for some that the blocks hold good prospects.

"No one knows the Brazilian coast better than Petrobras," said Adriano Pires, director of Rio-based think tank Brazilian Infrastructure Center. "Investors recognize that the company...has been very careful in its investment decisions."

Write to Luciana Magalhães at Luciana.Magalhaes@wsj.com and Paulo Trevisani at paulo.trevisani@wsj.com

Credit: By Luciana Magalhães and Paulo Trevisani

Subject: Wage & price controls; Oil fields; Petroleum industry; Gasoline prices; Pricing policies; Energy industry

Location: Spain China Brazil

Company / organization: Name: Chevron Corp; NAICS: 211111, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Repsol SA; NAICS: 213111, 213112, 324110; Name: CNOOC Ltd; NAICS: 211111; Name: Petroleos Brasileiro SA; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Jun 7, 2018

Section: World

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country ofpublication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2050908933

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2050908933?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-06-08

Database: The Wall Street Journal

Business News: Oil Drillers Buy Offshore Brazil Fields --- Consortium led by Exxon snags biggest block in auction that drew robust interest

Author: Magalhaes, Luciana; Trevisani, Paulo

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]08 June 2018: B.5.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

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RIO DE JANEIRO -- The world's largest energy companies lined up for a major auction of coveted Brazilian oil fields on Thursday, even as Brazil's government rolled back some market-friendly policies that would have made its oil industry more competitive.

Bidders offered more than $800 million plus large shares of so-called profit oil to Brazil's government for the right to explore three blocks in the Campos and Santos basins, thought to hold about 14 billion barrels of oil.

A consortium formed by Exxon Mobil Corp., Statoil Brasil -- a unit of Norway's Equinor ASA -- and Portugal's Petrogal won the largest block, known as Uirapuru, with a $679.4 million signing bonus plus 75.4% of profit oil -- the production exceeding what the consortium needs to cover costs. Brazil's state-controlled Petroleo Brasileiro SA, or Petrobras, exercised its right to be the operating partner, with a 30% share of the consortium.

It was the government's fourth auction for areas in the pre-salt region of southeastern Brazil where as much as 100 billion barrels of crude are believed to be locked under salt layers far beneath the seabed.

The smallest block on sale, known as Itaimbezinho, failed to attract bidders. Still, the final result was within market expectations.

"Competition was very high," Brazil's top energy regulator, Decio Oddone, said to reporters after the auction. "The Brazilian society will appropriate 90% of pre-salt proceeds."

The pre-salt reserves were discovered in 2006, but private companies were kept away and production delayed by rules that required Petrobras to be the operating partner with at least a 30% stake in any consortium in the region.

The government eased those rules last year to allow other companies to work without Petrobras if the state giant declined to participate in a project, although Petrobras still has the option to be the operator in areas it chooses.

Despite wavering over fuel prices, the government has a history of respecting contracts in the oil industry, leading analysts to believe companies securing blocks in the pre-salt would avoid any potential backpedaling in the future.

Exxon Mobil, which is becoming one of the largest players in pre-salt, noted that its latest winning bid brings to 25 the total blocks it has in offshore Brazil.

"Uirapuru is a uniquely valuable block that represents tremendous opportunity for us," the company said in a news release. "We look forward to exploring and developing [Brazil's] world-class resources."

Some analysts have been warning that high bids for pre-salt blocks pose risks for oil companies.

"High interest for the pre-salt is leading to very risky bets," said Juliana Miguez of Wood Mackenzie, an energy consulting group. She warned projects could become unprofitable if production doesn't turn out as expected, "but based on pre-salt estimates, they are feasible."

Petrobras's participation is a sign for some that the blocks hold good prospects.

"No one knows the Brazilian coast better than Petrobras," said Adriano Pires, director of Rio-based think tank Brazilian Infrastructure Center. "Investors recognize that the company . . . has been very careful in its investment decisions."

Credit: By Luciana Magalhaes and Paulo Trevisani

Subject: Consortia; Corporate profits; Petroleum industry; Energy industry

Location: Portugal Brazil Norway

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Petroleos Brasileiro SA; NAICS: 211111

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.5

Publication year: 2018

Publication date: Jun 8, 2018

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: New spapers

Language of publication: English

Document type: News

ProQuest document ID: 2051483950

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2051483950?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-06-08

Database: The Wall Street Journal

For Its Audience With Pope Francis, Exxon Tries on a New Hue: Green; The energy giant, criticized by environmentalists and subject to government probes, faces challenges in trying to reset its climate stance

Author: Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]08 June 2018: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

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Exxon Mobil Corp., the oil giant long derided by environmentalists, is trying to give itself a green facelift.

Chief Executive Darren Woods has called for Exxon to become "part of the solution" on climate change, a point he is expected to make Saturday as he and other oil and gas executives meet with Pope Francis at the Vatican to discuss the issue.

The company has flooded the airwaves during the NBA playoffs with advertisements touting its research into fuels made from algae. It pledged last month to cut its methane emissions 15% by 2020. Exxon is now calling for global action to address climate change, and it has begun publicly promoting a U.S. carbon tax.

It is part of an evolving shift by Exxon under Mr. Woods, after some of his predecessors adopted a more adversarial stance on climate and environmental issues with governments and activists. The oil giant faces investor pressure to disclose the potential impacts of climate regulations on its business, as well as lawsuits by New York and others alleging Exxon foresaw the consequences of rising temperatures--public battles that have forced the company to defend its reputation.

Exxon faces many challenges as it seeks to shift the narrative on its climate record. For one, it isn't really changing its business model.

While peers such as BP PLC and Total SA are investing in renewables and diversifying into other energy businesses , Exxon remains almost entirely focused on oil and gas. Its research projects are oriented toward mitigating the impact of fossil fuels, and may take years to gain traction.

"Exxon is taking a very narrow path on its green makeover relative to other companies," said Peter Bryant, managing partner at consulting firm Clareo. "They aren't building energy optionality."

The company's research aim is to find technological breakthroughs that will help meet the world's growing energy needs and reduce emissions. Exxon executives don't see traditional renewable energy project investments as having that kind of potential, officials say.

"We see our role as helping close the gap between what people want and what can be responsibly done," Mr. Woods told investors at Exxon's annual meeting last week.

The new posture has been years in the making, but it represents a significant about-face for Exxon, which in 2000 ran a newspaper ad questioning the "unsettled science" on global warming, and whose pugnacious former chief executive, Lee Raymond, spoke out in 1997 against the Kyoto Protocol, the international agreement to set global emission-reduction targets.

So far, Exxon's technology investments are largely wagers on the future of fossil fuels. For example, for algae-made fuel to ever be used in cars or trucks, the internal combustion engine must continue to hold sway in the market. The need for algae-related biofuels to be processed also could theoretically preserve some of the value of Exxon's refineries, experts say.

Mr. Woods last week disclosed the limited scale of Exxon's algae research. The program has the "potential" to produce 10,000 barrels a day by 2025, Mr. Woods said. That is less than half of one percent of Exxon's global refining capacity.

"They are putting their best foot forward to the general public, but at the end of the day, Exxon is a very conservative, disciplined company," said Bob Sullivan, managing director of consulting firm AlixPartners. "While it can be attractive to make big bets in renewables right now, it's still an uncertain market with a lot of volatility. There's a lot of risk of making bad bets."

As Exxon positions itself as an energy company of the future, it is also wrestling with legal challenges forcing it to address its past.

The New York and Massachusetts attorney general's offices continue to investigate how the company has accounted for the impact of climate change on its business. Exxon has submitted more than three million pages of documents and asserted the investigations are part of a conspiracy to punish the company and limit its free speech.

A New York federal judge in March said Exxon's claims were based on "extremely thin allegations and speculative inferences" and dismissed the company's lawsuit seeking to quash the investigation.

"Reducing greenhouse-gas emissions is a global issue and requires global participation and actions," Exxon spokesman Scott Silvestri said. Lawsuits such as those the company is facing "simply do not do that."

In addition, a number of cities, including San Francisco, Oakland and New York, have filed lawsuits against Exxon and other companies seeking damages for the costs they expect to incur building sea walls and other projects that will be needed because of climate change. A federal judge is expected to rule in coming months on whether the San Francisco and Oakland suits merit a trial, following a motion to dismiss by the companies.

The zeal with which Exxon has fought the cases, which have included efforts to subpoena or seek testimony from environmental groups and public officials, may undermine its attempt to strike a more conciliatory public stance on climate issues, said Amy Myers Jaffe, an energy fellow at the Council on Foreign Relations.

"Exxon has a reputation for aggressively defending itself in the courts, and this has been no exception," she said. "But in this case, it will make their effort to turn a corner all the more challenging."

Write to Bradley Olson at Bradley.Olson@wsj.com

Credit: By Bradley Olson

Subject: Fossil fuels; Algae; Emissions; Environmentalists; Consulting firms; International relations; Energy; Climate change

Location: Massachusetts New York United States--US San Francisco California

People: Woods, Darren Francis (Pope)

Company / organization: Name: Total SA; NAICS: 211111, 324110, 447190; Name: BP PLC; NAICS: 211111, 324110, 447110; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: AlixPartners LLC; NAICS: 541611; Name: Council on Foreign Relations; NAICS: 541720, 813910

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Jun 8, 2018

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2051536106

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2051536106?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-06-11

Database: The Wall Street Journal

EXCHANGE --- Business News: Exxon CEO Turns Down the Heat on Climate Issue

Author: Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]09 June 2018: B.3.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

Exxon Mobil Corp., the oil giant long derided by environmentalists, is trying to give itself a green facelift.

Chief Executive Darren Woods has called for Exxon to become "part of the solution" on climate change, a point he was expected to make Saturday as he and other oil and gas executives meet with Pope Francis at the Vatican to discuss the issue.

The company has flooded the airwaves during the NBA playoffs with advertisements touting its research into fuels made from algae. It pledged last month to cut its methane emissions 15% by 2020. Exxon is now calling for global action to address climate change, and it has begun publicly promoting a U.S. carbon tax.

It is part of an evolving shift by Exxon under Mr. Woods, after some of his predecessors adopted a more adversarial stance on climate and environmental issues with governments and activists. The oil giant faces investor pressure to disclose the potential impacts of climate regulations on its business, as well as lawsuits by New York and others alleging Exxon foresaw the consequences of rising temperatures -- public battles that have forced the company to defend its reputation.

Exxon faces many challenges as it seeks to shift the narrative on its climate record. For one, it isn't really changing its business model.

While peers such as BP PLC and Total SA are investing in renewables and diversifying into other energy businesses, Exxon remains almost entirely focused on oil and gas. Its research projects are oriented toward mitigating the impact of fossil fuels, and may take years to gain traction.

"Exxon is taking a very narrow path on its green makeover relative to other companies," said Peter Bryant, managing partner at consulting firm Clareo. "They aren't building energy optionality."

The company's research aim is to find technological breakthroughs that will help meet the world's growing energy needs and reduce emissions. Exxon executives don't see traditional renewables investments as having that kind of potential.

"We see our role as helping close the gap between what people want and what can be responsibly done," Mr. Woods told investors at Exxon's annual meeting late last month.

The new public posture has been years in the making, but it represents a significant about-face for Exxon, which in 2000 ran a newspaper ad questioning the "unsettled science" on global warming, and whose pugnacious former chief executive, Lee Raymond, spoke out in 1997 against the Kyoto Protocol, the international agreement to set global emission-reduction targets.

The evolution of Exxon's climate stance began under former Secretary of State Rex Tillerson, who preceded Mr. Woods as CEO. Mr. Tillerson supported a carbon tax in theory, though he was less proactive in positioning the company to provide climate solutions.

So far, Exxon's technology investments are largely wagers on the future of fossil fuels. For example, for algae-made fuel to ever be used in cars or trucks, the internal combustion engine must continue to hold sway in the market. The need for algae-related biofuels to be processed also could theoretically preserve some of the value of Exxon's refineries, experts say.

Credit: By Bradley Olson

Subject: Fossil fuels; Algae; Climate change; Environmental tax

Location: United States--US New York

People: Woods, Darren Tillerson, Rex W Francis (Pope)

Company / organization: Name: Total SA; NAICS: 211111, 324110, 447190; Name: BP PLC; NAICS: 211111, 324110, 447110; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2018

Publication date: Jun 9, 2018

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2052510631

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2052510631?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-06-11

Database: The Wall Street Journal

World News: Guyana Dreams of Oil Riches --- An Exxon Mobil-led consortium begins offshore drilling after discovering huge find

Author: Vyas, Kejal

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]22 June 2018: A.8.

ProQuest document link

Abstract: None available.

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Full text:

Corrections & Amplifications

A chart with a June 22 World News article about Guyana showed oil production in thousands of barrels a day per million inhabitants from various countries. The chart was labeled incorrectly as barrels a day per million inhabitants.

(WSJ June 29, 2018)

GEORGETOWN, Guyana -- Along the sea wall separating this sleepy capital's moldering wooden houses from the coffee-colored Atlantic, construction workers in hard hats rush to expand ports, build luxury condos and openthe country's first Hard Rock Cafe.

The developments aim to tap the expected wealth from what until recently was unimaginable for this jungle-covered former British colony: oil.

An Exxon Mobil Corp.-led consortium said last week it has begun offshore drilling after recently discovering at least 3.2 billion barrels of light crude in Guyanese waters. Guyana is projected within a decade to pump nearly a barrel of oil per person a day, more per capita than Saudi Arabia. That makes this poor backwater of 800,000 people -- mostly descendants of African slaves and indentured laborers from India -- a top global energy frontier.

"Each Guyanese is going to be a U.S.-dollar millionaire, or worth that, in a few years," Natural Resources Minister Raphael Trotman said, referring to a national wealth fund the country is developing.

Not everyone is convinced of a bonanza.

Many Guyanese say Exxon's deal disproportionately benefits the company and its minority partners -- Hess Corp. and China's Cnooc Ltd. -- while leaving little for this country of miners and farmers on horse-drawn carts. Others worry about corruption and Guyana's ability to responsibly handle an oil deposit worth nearly 50-times the nation's gross domestic product.

"Boy, ain't nobody here getting rich when all everyone does is steal," said Eon Samuels, 25, an unemployed construction worker, as he fished from a pier.

Exxon has called Guyana one of its most important and potentially profitable prospects, among a handful of new developments the company has identified as the best since its merger almost 20 years ago with Mobil Corp. Western oil companies have increasingly turned to Latin America at a time when opportunities have narrowed in other regions such as Russia or Iran due to sanctions or resource nationalism.

Exxon said that Guyana will receive an estimated $1.6 billion in royalties and revenue in the first five years after oil pumping begins in 2020 and a projected $7 billion during the life of one of its most promising fields. But the company hasn't finished appraising all the oil that it has found and keeps discovering more, portending what the company said was a larger payout for Guyana down the road. "This emerging industry has the potential to transform the economy of Guyana and positively impact the lives of people for generations to come," a company spokeswoman said.

It isn't uncommon in the oil industry for the first investors to get the best deals because they assume more risk. Exxon didn't discover oil in Guyana until 2015, 16 years after it signed an exploration contract.

But critics said the government should have demanded better terms when Exxon renewed the contract in 2016.

"Exxon took advantage of our weak bargaining position and our inexperience, and they were able to extract everything they wanted," said Anand Goolsarran, the country's former auditor general.

The International Monetary Fund, which is advising Guyana, recently recommended that the government halt granting new licenses until it can secure better terms and overhaul its tax structure.

Under its deal, Exxon is permitted to use as much as 75% of annual oil proceeds to recoup exploration and production costs once commercial pumping begins. Guyana gets a 2% royalty of the proceeds plus 50% of the remaining proceeds. That is on par with the world average for "frontier exploration," said IHS Markit analyst Carlos Bellorin.

But the oil companies' local taxes are paid from the country's share of the profits, cutting into Guyana's take.

"We will suffer from that contract for the next 75 years," said Christopher Ram, a prominent Guyanese attorney who through a weekly newspaper column and speeches has become a vociferous critic of the oil deal.

"But what do I know? I'm just a third-world bookkeeper," he added, sifting through pages of the deal with Exxon.

Credit: By Kejal Vyas

Subject: Offshore drilling; Consortia

Location: Russia United States--US India Saudi Arabia Latin America Iran China Guyana

Company / organization: Name: Hard Rock Cafe; NAICS: 722410, 722511; Name: International Monetary Fund--IMF; NAICS: 522298; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Hess Corp; NAICS: 211111, 324110, 447110; Name: CNOOC Ltd; NAICS: 211111; Name: IHS Markit; NAICS: 511210, 519130, 541512, 541910

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: A.8

Publication year: 2018

Publication date: Jun 22, 2018

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2057784286

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2057784286?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-06-28

Database: The Wall Street Journal

Exxon Mobil Is First Among Energy Companies in Management Top 250; Strength in innovation boosts the company to No. 18 overall. Energy companies in general lag in customer satisfaction and financial performance.

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]28 June 2018: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

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High marks for innovation lifted Exxon Mobil Corp. near the top of the Management Top 250 ranking, but most energy companies were held back by lagging scores on customer satisfaction and financial performance.

Exxon Mobil, No. 18 overall on the list, had among the highest scores in the ranking's innovation component, which is based on factors such as research-and-development spending and statistics on patents.

But it was among the energy companies with lagging scores on customer satisfaction, which measures things such as customer loyalty and how well customer expectations are met. For that category, it was in the bottom 27% of 693 big U.S. and Canadian companies that were studied.

On financial performance, Exxon Mobil was in the top 25% of all companies examined. That category tracks things like earnings and return on assets.

The Management Top 250, first published in December, was developed by the Drucker Institute to analyze and compare the management performance of major U.S. companies. It is based on the ideals of the late business guru Peter Drucker, who influenced generations of business leaders with his writings, including a regular column in The Wall Street Journal.

The other categories of the ranking are social responsibility and employee engagement and development.

See more analysis and the full list of the 2017 Management Top 250 at wsj.com/managementtop250 . Plus, read about how technology , telecommunications , financial and automotive companies rank. The full methodology is available at on.wsj.com/top-250-methodology .

--Dave Pettit (@pettitd )

Write to Dave Pettit at dave.pettit@wsj.com

Explore the Management Top 250

Subject: Brand loyalty; Energy industry; Customer satisfaction

Location: United States--US

People: Drucker, Peter F

Company / organization: Name: Drucker Institute; NAICS: 519120; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Wall Street Journal; NAICS: 511110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Jun 28, 2018

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2060933144

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2060933144?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-06-28

Database: The Wall Street Journal

Chevron Boss, Not Exxon's, Was Highest Paid in 2017; Recently retired John Watson tops list of highest-paid energy bosses; Exxon's rookie CEO was No. 9

Author: Thomas, Patrick

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]09 July 2018: n/a.

ProQuest document link

Abstract: None available.

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Recently retired John Watson of the oil giant Chevron Corp. topped the list of highest-paid energy bosses in the S&P 500, taking home more in 2017 than his counterpart at Exxon Mobil Corp.

Mr. Watson, 61, received $24.8 million in 2017, compared with the $17.5 million that first-year Exxon chief Darren Woods was paid last year, according to a Wall Street Journal analysis of pay data from MyLogIQ LLC. Mr. Woods took over on Jan. 1 after Rex Tillerson left Exxon to join the Trump administration .

It was the first time since Mr. Watson took over as CEO in 2010 that he outearned Exxon's leader. Before Mr. Watson's tenure, Chevron's CEO sometimes out-earned Exxon's, even though Exxon is larger in terms of revenue and market capitalization.

After 37 years at Chevron, Mr. Watson retired and was replaced as CEO in February by Michael Wirth, who oversaw the company's network of refining and pipeline assets.

The majority of Mr. Watson's pay was linked to performance, a Chevron spokesman said. "Moreover, during John's tenure, Chevron's stock outperformed its peer companies by a wide margin." In 2016, only 54 percent of stockholders supported Mr. Watson's pay, but 93 percent of stockholders supported it in 2017 after his compensation was changed to be more tied to stock awards and to rely less on option awards, according to regulatory filings. His total compensation in 2017 was about the same as it was in 2016.

Chevron posted a shareholder return of 10.6% for 2017, compared with the median -3.3% for the S&P 500 energy sector. Exxon's shareholder return was -3.8% last year. Total return reflects share price appreciation and dividends.

The median pay for an energy sector CEO in the S&P 500 was $12.7 million last year, according to the Journal analysis.

Four of the eight highest-paid CEOs of the 28 companies in the S&P 500 energy sector ran refining and marketing companies. Topping that group was Greg Garland, CEO of Phillips 66, who received $23.7 million last year. Phillips 66 posted a 20.9% shareholder return in 2017.

Despite surging crude oil prices, nine of the 13 exploration and production companies in the group had negative shareholder returns. Those 13 companies had a median CEO compensation of $12.2 million.

The Journal analysis encompassed S&P 500 energy companies and excluded CEOs who changed jobs during the year or served less than a full year. See the full list here:

Theo Francis contributed to this article.

Credit: By Patrick Thomas

Subject: Chief executive officers; Stockholders; Compensation; Crude oil prices; Energy industry

People: Woods, Darren Tillerson, Rex W

Company / organization: Name: Chevron Corp; NAICS: 211111, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 4471 10; Name: Wall Street Journal; NAICS: 511110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Jul 9, 2018

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2066401296

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Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-07-10

Database: The Wall Street Journal

Business News: Chevron Boss, Not Exxon's, Is Top-Paid Energy Chief

Author: Thomas, Patrick

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]10 July 2018: B.3.

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Recently retired John Watson of the oil giant Chevron Corp. topped the list of highest-paid energy bosses in the S&P 500, taking home more in 2017 than his counterpart at Exxon Mobil Corp.

Mr. Watson, 61 years old, received $24.8 million in 2017, compared with the $17.5 million that first-year Exxon chief Darren Woods was paid last year, according to a Wall Street Journal analysis of pay data from MyLogIQ LLC. Mr. Woods took over on Jan. 1 after Rex Tillerson left Exxon to join the Trump administration.

It was the first time since Mr. Watson took over as CEO in 2010 that he outearned Exxon's leader. Before Mr. Watson's tenure, Chevron's CEO sometimes outearned Exxon's, even though Exxon is larger in terms of revenue and market capitalization.

After 37 years at Chevron, Mr. Watson retired and was replaced as CEO in February by Michael Wirth, who oversaw the company's network of refining and pipeline assets.

The majority of Mr. Watson's pay was linked to performance, a Chevron spokesman said. "Moreover, during John's tenure, Chevron's stock outperformed its peer companies by a wide margin." In 2016, only 54% of stockholders supported Mr. Watson's pay, but 93% of stockholders supported it in 2017 after his compensation was changed to be more tied to stock awards and to rely less on option awards, according to regulatory filings. His total compensation in 2017 was about the same as it was in 2016.

Chevron posted a shareholder return of 10.6% for 2017, compared with the median -3.3% for the S&P 500 energy sector. Exxon's shareholder return was -3.8% last year. Total return reflects share price appreciation and dividends.

The median pay for an energy sector CEO in the S&P 500 was $12.7 million last year, according to the Journal analysis.

Four of the eight highest-paid CEOs of the 28 companies in the S&P 500 energy sector ran refining and marketing companies. Topping that group was Greg Garland, CEO of Phillips 66, who received $23.7 million last year. Phillips 66 posted a 20.9% shareholder return in 2017.

Despite surging crude oil prices, nine of the 13 exploration and production companies in the group had negative shareholder returns. Those 13 companies had a median CEO compensation of $12.2 million.

The Journal analysis encompassed S&P 500 energy companies and excluded CEOs who changed jobs during the year or served less than a full year.

---

Theo Francis contributed to this article.

Credit: By Patrick Thomas

Subject: Chief executive officers; Stockholders; Compensation; Crude oil prices; Energy industry

People: Woods, Darren Tillerson, Rex W

Company / organization: Name: Chevron Corp; NAICS: 211111, 324110; Name: Exxon Mobil Corp; NAICS: 211111, 4471 10; Name: Wall Street Journal; NAICS: 511110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.3

Publication year: 2018

Publication date: Jul 10, 2018

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2066966197

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Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-07-10

Database: The Wall Street Journal

Exxon, Once a 'Perfect Machine,' Is Running Dry; CEO Darren Woods's plan to make a comeback by spending more on fossil-fuel projects has so far proved unpopular

Author: Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]13 July 2018: n/a.

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Abstract: None available.

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Corrections & Amplifications

The chart on oil and gas production is in millions of barrels a day. An earlier version of this article incorrectly stated in the chart that production was in billions of barrels a day. (July 13, 2018)

Darren Woods spent a year preparing an ambitious plan to return Exxon Mobil Corp. to glory.

Struggling with laryngitis, the oil giant's chief executive stepped before a ballroom full of analysts and investors at the New York Stock Exchange in March and unveiled a strategy to spend more than $230 billion to double profits and pump an additional one million barrels a day of oil and gas.

As Mr. Woods walked away afterward and peered at his phone, he received an unwelcome surprise. Shareholders didn't buy it. "Our stock is down 3%," he said to another executive, looking exasperated.

Exxon faces a number of challenges, including investigations of its accounting and tax practices as well as lawsuits by cities and states seeking funds to pay for the effects of climate change. Its biggest problem is one the giant has seldom faced in its 148-year history: It isn't making as much money as it used to.

Under former CEO Rex Tillerson, Exxon bet big hunting for oil in risky, expensive locales like the Russian Arctic. But as oil prices fell, those projects didn't pay off the way Exxon had hoped. Now the $350 billion Irving, Texas, company is returning to its old ways: big, disciplined spending on prospects that make money at low oil prices.

The approach is a gamble in a new era of energy breakthroughs such as fracking and electric vehicles. Many of Exxon's competitors are transforming their businesses to move away from oil exploration, and have begun to spend carefully and diversify into renewable energy.

Investors, who once looked past Exxon's tendency toward arrogance and secrecy because of its good returns, aren't sure they want Big Oil to get bigger.

"Most investors like Exxon, but they like other companies better," said Mark Stoeckle, chief executive of Adams Funds, which owns about $100 million in Exxon shares. "The market is not willing to reward Exxon for spending today in hopes that it will bring good returns tomorrow."

Exxon has been pledging to produce more oil and gas for years, but its output of about four million barrels a day is no higher today than it was after its merger with Mobil Corp. in 1999. Even if Exxon succeeds in doubling last year's earnings of $15 billion (excluding impairments and tax reform impacts) by 2025, as Mr. Woods vowed in his eight-year spending plan, it would still be making far less than in 2008, when it set what was then a record for annual profits by an American corporation, at $45 billion.

In 2016, S&P Global Ratings stripped Exxon of the triple-A credit rating it held since 1930. It was one of only three companies to hold the distinction at that time, along with Microsoft Corp. and Johnson & Johnson. While Exxon once ranked as the world's largest company by market value, it was 10th as of June 30, less than half the size of Apple Inc.

Through a spokesman, Mr. Woods declined to comment. Exxon declined to make other executives available for interviews. Exxon has denied wrongdoing related to the climate litigation and other probes it is facing, and insisted the lawsuits are the wrong way to deal with climate change.

The company traces its history back to Standard Oil, the name oil titan John D. Rockefeller gave to his powerful monopoly to signify control, order and uniform quality. The U.S. Supreme Court broke up the monopoly in 1911.

Exxon, the largest descendant of that monopoly, bears a resemblance to Standard Oil even now. While a powerful CEO sets the company's direction, Exxon is ultimately run by a committee of a handful of executives, dubbed the "God pod" by employees. Much as it was in Mr. Rockefeller's time, they divide oversight responsibility over Exxon's vast reach, which now spans 51 countries and six continents and includes more than 70,000 employees.

It became the biggest public company in the world by revenue in 1975, and over the next 3½ decades it was often the most profitable, even when oil prices were low. Exxon excelled in coming through on budget and as scheduled in projects rife with political and engineering complexity.

The company's process included a painstaking analysis of all decisions, major and minor. Projects were judged based on an assumed oil price often as much as 50% or more below current or forecast prices, according to more than a dozen former employees and executives.

Its leaders confidently steered the company through oil crashes, foreign conflicts and clashes with Wall Street. Lee Raymond, Exxon's boss from 1993 to 2005, personified the swagger at the heart of the company's ethos. He was notorious for making fun of or criticizing the questions of Wall Street analysts, often to their faces, and he was equally dismissive of some shareholders at annual meetings.

That style rankled some rivals and investors, but Exxon backed it up with best-in-class performance.

Exxon's stock traded at a premium to its peers for decades, a trend that intensified after the company's purchase of Mobil. Investors at times recognized twice the value in Exxon's assets compared with rivals BP PLC, Total SA, Chevron Corp. and Royal Dutch Shell PLC.

For years, Exxon "operated like a perfect machine," said Uday Turaga, a former ConocoPhillips executive who now runs consulting firm ADI Analytics. "It is a process-driven, extremely disciplined organization."

About a decade ago, Mr. Raymond was succeeded by Mr. Tillerson, a folksy Texan who came from the so-called upstream side of the business, which explores for and produces oil and gas, and who had a penchant for personally negotiating big oil-production deals himself.

As prices rose to all-time highs of almost $150 a barrel, Mr. Tillerson led the charge to chase more expensive prospects that could meet the world's thirst for crude. He looked to Canada's oil sands, natural gas fracking and even Russia's Arctic, all of which required higher prices to be profitable.

Those efforts largely failed. Exxon's production has declined in the past five years, and the company has delivered lackluster financial results. Today, oil prices are around $74 a barrel.

Mr. Tillerson, who left in 2017 for a short-lived stint as President Donald Trump's Secretary of State, produced returns of about 6% a year during his tenure, including dividends--far less than the S&P 500 or rivals Chevron and Shell in that period, according to FactSet. Mr. Tillerson didn't respond to requests for comment.

In need of a chief executive who could return Exxon to its prior glory--and who could help Exxon confront a multitude of critics and a new energy landscape--the board turned to the 53-year-old Mr. Woods.

A tall, white-haired electrical engineer originally from Kansas, Mr. Woods came up through the ranks of Exxon's refining division, where profits come from squeezing pennies out of every barrel.

He is an enthusiastic believer in the company's traditions. In one of his first public presentations as a top executive, given in 2015 to a labor conference in the Dallas area, he repeatedly praised the company's risk and accountability methodology, known as the Operations Integrity Management System. He mentioned the wonky acronym, OIMS, 13 times in a short speech.

As he prepared to take the reins from Mr. Tillerson more than a year ago, he held a series of dinners with close advisers, according to people familiar with the meetings. At one dinner, he received a query: What if Exxon is wrong in its view of a bright future for fossil fuels? What if the greatest risk to the company is hubris?

Mr. Woods acknowledged the threat the company faces from shale drilling, electric vehicles and climate hawks, according to a person familiar with the discussion. Renewable energy opportunities weren't yet profitable enough to compete with other Exxon projects, Mr. Woods said. When they are, the company will be ready.

For now, he added, the best way forward was for Exxon to do things the Exxon way.

His faith in Exxon's process was one of the top reasons he was selected by the board to succeed Mr. Tillerson, according to people familiar with the decision.

Among the company's recent challenges: Exxon wound up miscalculating the political risks of doing business in Russia, which came under U.S. and European sanctions in 2014, and walked away earlier this year from joint ventures with state-controlled PAO Rosneft to drill for oil in the Black Sea and Arctic waters. Last year, the company was forced to acknowledge that 3.6 billion barrels of reserves in Canada--from an oil sands project that cost more than $20 billion--were no longer profitable to produce.

Another blunder, analysts say, was the 2010 purchase of XTO Energy Inc., one of the pioneers of modern fracking. Exxon bought the company for more than $30 billion, when natural gas prices were higher than they would be at any point over the next seven years.

In the past two years, Exxon has written down the value of its U.S. natural gas assets, which include its XTO unit, by $2.5 billion, an unusual step for the company. In 2015, Mr. Tillerson told trade publication Energy Intelligence that at Exxon, "we don't do write-downs."

Exxon's fracking prospects in the Permian basin in West Texas and New Mexico, developed by its XTO unit, remain among its most profitable opportunities, the company says. Still, its U.S. drilling business has lost money in 11 of the last 15 quarters.

Mr. Woods has taken several steps to shake up Exxon's insularity, embrace new risks and jettison less profitable areas. People familiar with the matter said Exxon is weighing reducing its exposure to Canada, where it has operated for 130 years. Getting oil from Canada's oil sands is expensive, and the prospect of reduced exposure has signaled to some advisers that the company may become more aggressive in seeking transformation.

The company is also developing a more robust trading operation with an eye toward using regional oil and gas price disparities in the U.S. and around the world to boost profits, according to people familiar with the process.

Still, the centerpiece of Mr. Woods's turnaround effort is a major increase in spending, much of which is focused on drilling in Brazil, Papua New Guinea, Mozambique and Texas. In March, he said such opportunities are the best Exxon has seen since its merger with Mobil. They will make it possible for the company to produce an additional one million barrels of oil and gas a day, he said. Combined with existing production, that would equate to five million daily barrels, a record for Exxon.

Next year, Exxon is set to spend $28 billion, 45% more than in 2016. That's a marked difference from rivals such as Chevron, which is holding investment levels flat this year and 18% below 2016 levels.

Shareholders haven't responded with enthusiasm. The price of crude is up about 60% in the past year, but Exxon shares are up less than 5%.

Earlier in the year, analyst Paul Sankey, then of Wolfe Research, said clients were calling for an activist investor to force the company to take more "radical action." The unrest has calmed somewhat with oil's rally, analysts say. But shareholders are still looking for big change.

"Darren Woods is turning the Exxon Mobil supertanker, but the scale of the challenge is giant," said Mr. Sankey, now an analyst at Mizuho Energy. Exxon is poised to rebound in three to five years, but other companies are better bets for now, he said.

Investors are favoring smaller, nimbler competitors. ConocoPhillips, which has seen its shares rise 60% since last year, shed a number of businesses and promised to distribute much of its excess cash to shareholders in coming years rather than reinvesting.

From January to March, EOG Resources Inc., the biggest American shale producer, reported higher per-share profits than Exxon, a company five times its size. EOG's stock is up 84% in the last five years. Exxon is down about 10% in that time.

Meanwhile, rivals such as Shell, BP and Total have diversified outside of fossil fuels.

"Through the ups and downs of oil prices, Exxon always had very high returns, but that has changed," said Jonathan Waghorn, a portfolio manager at Guinness Atkinson Management Inc. It sold out of its Exxon position last year.

Alison Sider contributed to this article.

Write to Bradley Olson at Bradley.Olson@wsj.com

Related reading

* Chevron Boss, Not Exxon's, Was Highest Paid in 2017

* Exxon Pledges to Cut Methane Emissions 15% by 2020

* How Tillerson's Exxon Designed an Oil Deal to Skirt Anticorruption Scrutiny

* For Its Audience With Pope Francis, Exxon Tries on a New Hue: Green

* Judge Dismisses Climate Suits Targeting Big Oil Companies

Credit: By Bradley Olson

Subject: Corporate profits; Stockholders; Investments; Budgets; Crude oil prices; Employees; Climate change; Litigation; Executives; Competition; Natural gas

Location: Texas Arctic region United States--US

People: Woods, Darren

Company / organization: Name: ConocoPhillips Co; NAICS: 211111; Name: Exxon Mobil Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Jul 13, 2018

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2068946832

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2068946832?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-07-14

Database: The Wall Street Journal

EXCHANGE --- Exxon Is Running Low --- The once mighty oil giant is struggling. Profits are down, and some big bets failed to pay off. Now a new CEO has a plan to spend the company back to prosperity.

Author: Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]14 July 2018: B.1.

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Darren Woods spent a year preparing an ambitious plan to return Exxon Mobil Corp. to glory.

Struggling with laryngitis, the oil giant's chief executive stepped before a ballroom full of analysts and investors at the New York Stock Exchange in March and unveiled a strategy to spend more than $230 billion to double profits and pump an additional one million barrels a day of oil and gas.

As Mr. Woods walked away afterward and peered at his phone, he received an unwelcome surprise. Shareholders didn't buy it. "Our stock is down 3%," he said to another executive, looking exasperated.

Exxon faces a number of challenges, including investigations of its accounting and tax practices as well as lawsuits by cities and states seeking funds to pay for the effects of climate change. Its biggest problem is one the giant has seldom faced in its 148-year history: It isn't making as much money as it used to.

Under former CEO Rex Tillerson, Exxon bet big hunting for oil in risky, expensive locales like the Russian Arctic. But as oil prices fell, those projects didn't pay off the way Exxon had hoped. Now the $350 billion Irving, Texas, company is returning to its old ways: big, disciplined spending on prospects that make money at low oil prices.

The approach is a gamble in a new era of energy breakthroughs such as fracking and electric vehicles. Many of Exxon's competitors are transforming their businesses to move away from oil exploration, and have begun to spend carefully and diversify into renewable energy.

Investors, who once looked past Exxon's tendency toward arrogance and secrecy because of its good returns, aren't sure they want Big Oil to get bigger.

"Most investors like Exxon, but they like other companies better," said Mark Stoeckle, chief executive of Adams Funds, which owns about $100 million in Exxon shares. "The market is not willing to reward Exxon for spending today in hopes that it will bring good returns tomorrow."

Exxon has been pledging to produce more oil and gas for years, but its output of about four million barrels a day is no higher today than it was after its merger with Mobil Corp. in 1999. Even if Exxon succeeds in doubling last year's earnings of $15 billion (excluding impairments and tax reform impacts) by 2025, as Mr. Woods vowed in his eight-year spending plan, it would still be making far less than in 2008, when it set what was then a record for annual profits by an American corporation, at $45 billion.

In 2016, S&P Global Ratings stripped Exxon of the triple-A credit rating it held since 1930. It was one of only three companies to hold the distinction at that time, along with Microsoft Corp. and Johnson & Johnson. While Exxon once ranked as the world's largest company by market value, it was 10th as of June 30, less than half the size of Apple Inc.

Through a spokesman, Mr. Woods declined to comment. Exxon declined to make other executives available for interviews. Exxon has denied wrongdoing related to the climate litigation and other probes it is facing, and insisted the lawsuits are the wrong way to deal with climate change.

The company traces its history back to Standard Oil, the name oil titan John D. Rockefeller gave to his powerful monopoly to signify control, order and uniform quality. The U.S. Supreme Court broke up the monopoly in 1911.

Exxon, the largest descendant of that monopoly, bears a resemblance to Standard Oil even now. While a powerful CEO sets the company's direction, Exxon is ultimately run by a committee of a handful of executives, dubbed the "God pod" by employees. Much as it was in Mr. Rockefeller's time, they divide oversight responsibility over Exxon's vast reach, which now spans 51 countries and six continents and includes more than 70,000 employees.

It became the biggest public company in the world by revenue in 1975, and over the next 3 1/2 decades it was often the most profitable, even when oil prices were low. Exxon excelled in coming through on budget and as scheduled in projects rife with political and engineering complexity.

The company's process included a painstaking analysis of all decisions, major and minor. Projects were judged based on an assumed oil price often as much as 50% or more below current or forecast prices, according to more than a dozen former employees and executives.

Its leaders confidently steered the company through oil crashes, foreign conflicts and clashes with Wall Street. Lee Raymond, Exxon's boss from 1993 to 2005, personified the swagger at the heart of the company's ethos. He was notorious for making fun of or criticizing the questions of Wall Street analysts, often to their faces, and he was equally dismissive of some shareholders at annual meetings.

That style rankled some rivals and investors, but Exxon backed it up with best-in-class performance.

Exxon's stock traded at a premium to its peers for decades, a trend that intensified after the company's purchase of Mobil. Investors at times recognized twice the value in Exxon's assets compared with rivals BP PLC, Total SA, Chevron Corp. and Royal Dutch Shell PLC.

For years, Exxon "operated like a perfect machine," said Uday Turaga, a former ConocoPhillips executive who now runs consulting firm ADI Analytics. "It is a process-driven, extremely disciplined organization."

About a decade ago, Mr. Raymond was succeeded by Mr. Tillerson, a folksy Texan who came from the so-called upstream side of the business, which explores for and produces oil and gas, and who had a penchant for personally negotiating big oil-production deals himself.

As prices rose to all-time highs of almost $150 a barrel, Mr. Tillerson led the charge to chase more expensive prospects that could meet the world's thirst for crude. He looked to Canada's oil sands, natural gas fracking and even Russia's Arctic, all of which required higher prices to be profitable.

Those efforts largely failed. Exxon's production has declined in the past five years, and the company has delivered lackluster financial results. Today, oil prices are around $74 a barrel.

Mr. Tillerson, who left in 2017 for a short-lived stint as President Donald Trump's Secretary of State, produced returns of about 6% a year during his tenure, including dividends -- far less than the S&P 500 or rivals Chevron and Shell in that period, according to FactSet. Mr. Tillerson didn't respond to requests for comment.

In need of a chief executive who could return Exxon to its prior glory -- and who could help Exxon confront a multitude of critics and a new energy landscape -- the board turned to the 53-year-old Mr. Woods.

A tall, white-haired electrical engineer originally from Kansas, Mr. Woods came up through the ranks of Exxon's refining division, where profits come from squeezing pennies out of every barrel.

He is an enthusiastic believer in the company's traditions. In one of his first public presentations as a top executive, given in 2015 to a labor conference in the Dallas area, he repeatedly praised the company's risk and accountability methodology, known as the Operations Integrity Management System. He mentioned the wonky acronym, OIMS, 13 times in a short speech.

As he prepared to take the reins from Mr. Tillerson more than a year ago, he held a series of dinners with close advisers, according to people familiar with the meetings. At one dinner, he received a query: What if Exxon is wrong in its view of a bright future for fossil fuels? What if the greatest risk to the company is hubris?

Mr. Woods acknowledged the threat the company faces from shale drilling, electric vehicles and climate hawks, according to a person familiar with the discussion. Renewable energy opportunities weren't yet profitable enough to compete with other Exxon projects, Mr. Woods said. When they are, the company will be ready.

For now, he added, the best way forward was for Exxon to do things the Exxon way.

His faith in Exxon's process was one of the top reasons he was selected by the board to succeed Mr. Tillerson, according to people familiar with the decision.

Among the company's recent challenges: Exxon wound up miscalculating the political risks of doing business in Russia, which came under U.S. and European sanctions in 2014, and walked away earlier this year from joint ventures with state-controlled PAO Rosneft to drill for oil in the Black Sea and Arctic waters. Last year, the company was forced to acknowledge that 3.6 billion barrels of reserves in Canada -- from an oil sands project that cost more than $20 billion -- were no longer profitable to produce.

Another blunder, analysts say, was the 2010 purchase of XTO Energy Inc., one of the pioneers of modern fracking. Exxon bought the company for more than $30 billion, when natural gas prices were higher than they would be at any point over the next seven years.

In the past two years, Exxon has written down the value of its U.S. natural gas assets, which include its XTO unit, by $2.5 billion, an unusual step for the company. In 2015, Mr. Tillerson told trade publication Energy Intelligence that at Exxon, "we don't do write-downs."

Exxon's fracking prospects in the Permian basin in West Texas and New Mexico, developed by its XTO unit, remain among its most profitable opportunities, the company says. Still, its U.S. drilling business has lost money in 11 of the last 15 quarters.

Mr. Woods has taken several steps to shake up Exxon's insularity, embrace new risks and jettison less profitable areas. People familiar with the matter said Exxon is weighing reducing its exposure to Canada, where it has operated for 130 years. Getting oil from Canada's oil sands is expensive, and the prospect of reduced exposure has signaled to some advisers that the company may become more aggressive in seeking transformation.

The company is also developing a more robust trading operation with an eye toward using regional oil and gas price disparities in the U.S. and around the world to boost profits, according to people familiar with the process.

Still, the centerpiece of Mr. Woods's turnaround effort is a major increase in spending, much of which is focused on drilling in Brazil, Papua New Guinea, Mozambique and Texas. In March, he said such opportunities are the best Exxon has seen since its merger with Mobil. They will make it possible for the company to produce an additional one million barrels of oil and gas a day, he said. Combined with existing production, that would equate to five million daily barrels, a record for Exxon.

Next year, Exxon is set to spend $28 billion, 45% more than in 2016. That's a marked difference from rivals such as Chevron, which is holding investment levels flat this year and 18% below 2016 levels.

Shareholders haven't responded with enthusiasm. The price of crude is up about 60% in the past year, but Exxon shares are up less than 5%.

Earlier in the year, analyst Paul Sankey, then of Wolfe Research, said clients were calling for an activist investor to force the company to take more "radical action." The unrest has calmed somewhat with oil's rally, analysts say. But shareholders are still looking for big change.

"Darren Woods is turning the Exxon Mobil supertanker, but the scale of the challenge is giant," said Mr. Sankey, now an analyst at Mizuho Energy. Exxon is poised to rebound in three to five years, but other companies are better bets for now, he said.

Investors are favoring smaller, nimbler competitors. ConocoPhillips, which has seen its shares rise 60% since last year, shed a number of businesses and promised to distribute much of its excess cash to shareholders in coming years rather than reinvesting.

From January to March, EOG Resources Inc., the biggest American shale producer, reported higher per-share profits than Exxon, a company five times its size. EOG's stock is up 84% in the last five years. Exxon is down about 10% in that time.

Meanwhile, rivals such as Shell, BP and Total have diversified outside of fossil fuels.

"Through the ups and downs of oil prices, Exxon always had very high returns, but that has changed," said Jonathan Waghorn, a portfolio manager at Guinness Atkinson Management Inc. It sold out of its Exxon position last year.

---

Alison Sider contributed to this article.

Credit: By Bradley Olson

Subject: Corporate profits; Stockholders; Investments; Budgets; Oil sands; Employees; Electric vehicles; Natural gas prices; Renewable resources; Climate change; Litigation; Petroleum industry

Location: Russia United States--US Arctic region Canada

People: Woods, Darren

Company / organization: Name: ConocoPhillips Co; NAICS: 211111; Name: Exxon Mobi l Corp; NAICS: 211111, 447110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2018

Publication date: Jul 14, 2018

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: Unite d States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2069312813

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2069312813?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-07-23

Database: The Wall Street Journal

Big Oil Profits Fall Short of Crude-Price Rally; Exxon, Chevron and others have also been slow to share their substantial excess cash with investors

Author: Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]27 July 2018: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

The world's largest oil companies continue to disappoint investors with limited cash payouts and profits that have failed to match the rally in crude, reflecting the fragile nature of a recovery from one of the worst price crashes in a generation.

Exxon Mobil Corp. said net income rose to $4 billion for the April-June quarter, up 18% compared with the same period a year earlier but substantially below the 50% oil-price increase in that three-month stretch. The company's production fell to 3.6 million barrels of oil and gas a day, the lowest in more than 20 years, due in part to an earthquake in Papua New Guinea and a shift away from less profitable U.S. natural gas drilling.

Second-quarter profit at Chevron Corp. more than doubled to $3.4 billion and the company said it will begin buying back about $3 billion in shares annually. The results at both companies fell well short of Wall Street expectations--the third-straight quarterly miss for Exxon--although Chevron shares rallied on the buyback announcement while Exxon shares declined.

"They are disappointing the market," said Brian Youngberg, an analyst at Edward Jones. "You keep thinking the worst is over, but then they lay another egg."

Exxon executives sounded a rare note of contrition for the results, vowing to address issues that led to unexpected operational challenges. Senior Vice President Neil Chapman, who oversees the company's oil and gas production business, emphasized that Exxon's decisions on where to drill are based more on what is profitable than on growth targets.

"We're not focused on volume," he said. "We're focused on value."

He also said Exxon is "looking very hard" at potential asset sales.

Exxon, Chevron and other large companies have posted their highest second-quarter profits since 2014, when oil prices began a decline that bottomed out at below $30 a barrel. Yet as crude has recovered to about $70 a barrel, many are still holding back on spending and shareholder payouts as they recover from the painful downturn.

Together with European oil giants Royal Dutch Shell PLC, BP PLC and France's Total SA, the five largest Western companies are set to generate about $90 billion in free cash flow in 2018 and 2019, exceeding records set in 2008 when oil sold for almost $150 a barrel.

Yet they are paying out far less of their cash haul to investors. In 2008, the five companies generated about $85 billion in excess cash, the highest ever, and bought back more than $50 billion in shares, according to FactSet.

This year, the buyback total is unlikely to exceed $15 billion, about 17% of the free cash flow expected by analysts at the five companies. The demand for more cash reflects shareholder skepticism about long-term oil and gas investments. As oil prices rose above $100 a barrel, many companies increased spending by tens of billions of dollars and failed to boost production or returns.

"Oil companies spent like drunken sailors in the last decade without generating great returns," said Mark Stoeckle, chief executive of Adams Funds, which owns about $175 million in Exxon and Chevron shares. "Investors now are much more interested in spending discipline and stock buybacks."

Smaller oil and gas producers are paying out proportionally far more , and shareholders are rewarding them for it. Anadarko Petroleum Corp., which has a market capitalization of $37 billion, bought back almost $3 billion in shares from September to March.

The company announced it would buy back an additional $1 billion through June 2019. Including reinvested dividends, Anadarko shares are up 62% in the last year, more than double the average increase among large companies like Exxon and Chevron.

Shell's shares fell by more than 3% Thursday after the company's quarterly profit fell short of expectations. The company announced a buyback of $25 billion through 2020, yet some shareholders were disappointed that only $2 billion shares will be repurchased in the next two months, analysts said.

BP shares were little changed Friday after the company announced plans to spend $10.5 billion to buy most of the U.S. shale business of BHP Billiton Ltd.

Exxon, which bought back tens of billions of dollars in shares annually when oil sold for more than $100 a barrel before the crash, has yet to return to large-scale buyback programs.

"The market loves capital discipline and shareholder returns," said Kris Nichol, an analyst at consultancy Wood Mackenzie Ltd. "The majors, so far, have been adhering to capital discipline, but they haven't been on the front foot in terms of shareholder returns."

Write to Bradley Olson at Bradley.Olson@wsj.com

Credit: By Bradley Olson

Subject: Corporate profits; Stockholders; Investments; Prices; Discipline; Securities buybacks

Location: United States--US Papua New Guinea France

Company / organization: Name: Royal Dutch Shell PLC; NAICS: 213112, 221210, 324110; Name: ConocoPhillips Co; NAICS: 211111; Name: Total SA; NAICS: 211111, 324110, 447190; Name: BP PLC; NAICS: 211111, 324110, 447110; Name: Chevron Corp; NAICS: 211111, 324110; Name: BHP Billiton; NAICS: 211111, 212231, 212234; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Mackenzie Ltd; NAICS: 454113; Name: Anadarko Petroleum Corp; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Jul 27, 2018

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2076925547

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2076925547?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-07-28

Database: The Wall Street Journal

Slouching Tiger: Why Exxon Isn't Worth Its Premium; The world has changed for the oil major and its strengths are no longer necessary to make big returns in the energy business

Author: Jakab, Spencer

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]30 July 2018: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

For decades it was the very model of a modern supermajor, but Exxon Mobil's edge over the rest of Big Oil is slipping and probably will continue to do so.

In the past year, for example, Exxon's shares have trailed those of each of its global peers--Shell, BP, Chevron and Total--to the tune of 27 percentage points on average. Even after that, it is valued at a 43% premium to those peers on enterprise value to projected earnings before interest, taxes, depreciation and amortization, and a 22% premium on forward earnings, according to FactSet data.

This is the portion of a commentary when the writer typically laments how management lost its way, but that makes for too neat of an explanation and not a terribly accurate one. The factors that are forcing Exxon from its perch are mostly beyond its control. Yes, it also made some unfortunate decisions--for example, buying XTO Energy in 2010 , during a time when some rivals made better deals. But the main cause of its malaise is that its long-successful strategy of capital discipline and the advantage of immense size are becoming less relevant.

Exxon's management has been called brash over the years. Ignoring the baying crowd mostly served it well, though. It didn't slash investment when the world soured on oil-and-gas exploration and it remained restrained during boom times. Its capital budgeting set a high hurdle rate for new projects by assuming oil prices would be below market forecasts while requiring a high return on its shareholders' money. If it didn't meet that bar then it returned the cash.

This quite literally paid dividends. In the 12 years following its merger with Mobil ending in 2012, Exxon paid out $318 billion in cash to its owners. Exxon's market value today is just $345 billion. During those years it had an average return on invested capital of over 35%--9 percentage points higher than its Big Oil peers, on average.

But the shale revolution has changed that by leveling the playing field and shortening the investment cycle. Exxon's ROIC since 2012 has, not surprisingly, been a much lower 11.6%.

There are still big rolls of the dice to be made, of course. Exxon has made a huge discovery in Guyana and is betting on conventional projects in Brazil, Papua New Guinea and elsewhere. It also is making promising energy infrastructure investments along the U.S. Gulf Coast.

If history is any guide, it will manage these projects well. But, as the oil-and-gas business becomes more like manufacturing and less like wildcatting, what made Exxon special is fading. That premium it earned over the decades will keep fading, too.

Credit: By Spencer Jakab

Subject: Earnings; Energy industry

Location: Brazil Guyana United States--US Papua New Guinea

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: XTO Energy Inc; NAICS: 211111

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Jul 30, 2018

column: Heard on the Street

Section: Markets

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2078443705

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2078443705?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-07-31

Database: The Wall Street Journal

SEC Drops Probe of Exxon's Climate-Change Disclosures; Regulators decided against trying to penalize the energy giant over its disclosures and how it accounted for oil and gas assets

Author: Michaels, Dave; Olson, Bradley

Publication info: Wall Street Journal (Online) ; New York, N.Y. [New York, N.Y]03 Aug 2018: n/a.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

WASHINGTON--Securities regulators dropped an investigation into whether Exxon Mobil Corp. misled investors about its accounting practices and the risks that climate change and greenhouse-gas regulations posed to its business.

The Securities and Exchange Commission in a Thursday letter informed Exxon that it closed the probe and decided against trying to penalize the energy giant over its disclosures and how it valued oil and gas assets. The letter was reviewed by The Wall Street Journal.

Exxon in a statement confirmed the probe had ended, saying it began in January 2016 and involved more than 4.2 million pages of records. "After a thorough investigation, including a review of these documents, the SEC issued its closure letter," company spokesman Scott Silvestri said in the statement.

The SEC's investigation began under former chairman Mary Jo White, who was picked by former President Barack Obama. It ended under SEC Chairman Jay Clayton, a new leader appointed by President Trump. The decision ends what was a surprise foray by the federal regulator into questioning how a major oil producer valued its assets in a world of increasing climate-change regulations.

An SEC spokesman declined to comment.

Investigations by the attorneys general of New York and Massachusetts continue into how Exxon has accounted for the impact of climate change on its assets. New York investigators have alleged in court papers that Exxon appears to have used internal estimates to account for climate impacts that differed from public statements. Exxon has denied those charges and said its statements accurately reflect the "proxy cost" of carbon it uses in internal estimates.

Before the probes began, Exxon was the only major oil-and-gas company that hadn't written down the value of its reserves in the previous decade, an issue New York investigators had taken an interest in . In accounting terms, the value of such assets often falls when prices decline. Since the fourth quarter of 2016, Exxon has booked more than $3 billion of impairments.

Under U.S. law, public companies must tell shareholders about risks or uncertainties that matter to shareholders' investment decisions. Environmental groups and some activist investors have pushed the SEC to force companies to disclose more about how they weigh their exposure to climate change.

The SEC advised public companies in 2010 that they should consider the impact of greenhouse-gas regulations, international agreements among governments to limit emissions, and the physical effects of climate change, such as severe weather. The SEC said all of those factors wouldn't apply to every public company, and it declined to mandate any specific disclosures about climate change.

Securities lawyers say the decision is specific to Exxon's case and may not portend a change in terms of how the SEC reviews companies' statements about climate change. Proving that a company suppressed the threat of climate change is difficult because the trend may not immediately--or anytime soon--affect its performance.

"Given the time horizon over which climate change could have an impact, it's challenging to prove that any risk or uncertainty is material to a company in the present day," said Keith Higgins, a former SEC director and now chairman of the securities and governance practice at Ropes & Gray LLP.

Write to Dave Michaels at dave.michaels@wsj.com and Bradley Olson at Bradley.Olson@wsj.com

Related

* For Its Audience With Pope Francis, Exxon Tries on a New Hue: Green (June 8)

* Federal Judge Dismisses Exxon Lawsuit Against Climate-Change Probes (March 29)

* Exxon Shareholders Pressure Company on Climate Risk (May 31, 2017)

* SEC Probes Exxon Over Accounting for Climate Change (Sept. 20, 2016

* Exxon Fires Back at Climate-Change Probe (April 13, 2016)

* Exxon Mobil Gets Subpoena From N.Y. Regarding Climate-Change Research (Nov. 5, 2015)

Credit: By Dave Michaels and Bradley Olson

Subject: Stockholders; Climate change

Location: United States--US

People: Francis (Pope)

Company / organization: Name: Securities & Exchange Commission; NAICS: 926150; Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Wall Street Journal; NAICS: 511110

Publication title: Wall Street Journal (Online); New York, N.Y.

Pages: n/a

Publication year: 2018

Publication date: Aug 3, 2018

Section: Business

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2082207158

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2082207158?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-08-05

Database: The Wall Street Journal

EXCHANGE --- SEC Ends Its Probe Of Exxon --- At issue was assessment of climate-change risks

Author: Michaels, Dave; Olson, Bradley

Publication info: Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]04 Aug 2018: B.1.

ProQuest document link

Abstract: None available.

Links: 360 Link to Full Text

Full text:

WASHINGTON -- Securities regulators dropped an investigation into whether Exxon Mobil Corp. misled investors about its accounting practices and the risks that climate change and greenhouse-gas regulations posed to its business.

The Securities and Exchange Commission in a Thursday letter informed Exxon that it closed the probe and decided against trying to penalize the energy giant over its disclosures and how it valued oil and gas assets. The letter was reviewed by The Wall Street Journal.

Exxon in a statement confirmed the probe had ended, saying it began in January 2016 and involved more than 4.2 million pages of records. "After a thorough investigation, including a review of these documents, the SEC issued its closure letter," company spokesman Scott Silvestri said in the statement.

The SEC's investigation began under former chairman Mary Jo White, who was picked by former President Obama. It ended under SEC Chairman Jay Clayton, a new leader appointed by President Trump. The decision ends what was a surprise foray by the federal regulator into questioning how a major oil producer valued its assets in a world of increasing climate-change regulations.

An SEC spokesman declined to comment.

Investigations by the attorneys general of New York and Massachusetts continue into how Exxon has accounted for the impact of climate change on its assets. New York investigators have alleged in court papers that Exxon appears to have used internal estimates to account for climate impacts that differed from public statements. Exxon has denied those charges and said its statements accurately reflect the "proxy cost" of carbon it uses in internal estimates.

Before the probes began, Exxon was the only major oil-and-gas company that hadn't written down the value of its reserves in the previous decade, an issue New York investigators had taken an interest in. In accounting terms, the value of such assets often falls when prices decline. Since the fourth quarter of 2016, Exxon has booked more than $3 billion of impairments.

Under U.S. law, public companies must tell shareholders about risks or uncertainties that matter to shareholders' investment decisions. Environmental groups and some activist investors have pushed the SEC to force companies to disclose more about how they weigh their exposure to climate change.

The SEC advised public companies in 2010 that they should consider the impact of greenhouse-gas regulations, international agreements among governments to limit emissions, and the physical effects of climate change, such as severe weather. The SEC said all of those factors wouldn't apply to every public company, and it declined to mandate any specific disclosures about climate change.

Securities lawyers say the decision is specific to Exxon's case and may not portend a change in terms of how the SEC reviews companies' statements about climate change. Proving that a company suppressed the threat of climate change is difficult because the trend may not immediately -- or anytime soon -- affect its performance.

"Given the time horizon over which climate change could have an impact, it's challenging to prove that any risk or uncertainty is material to a company in the present day," said Keith Higgins, a former SEC director and now chairman of the securities and governance practice at Ropes & Gray LLP.

Credit: By Dave Michaels and Bradley Olson

Subject: Stockholders; Investigations; International agreements; Climate change

Location: United States--US New York Massachusetts

People: Trump, Donald J Higgins, Keith Obama, Barack

Company / organization: Name: Exxon Mobil Corp; NAICS: 211111, 447110; Name: Ropes & Gray; NAICS: 541110; Name: Securities & Exchange Commission; NAICS: 926150; Name: Wall Street Journal; NAICS: 511110

Publication title: Wall Street Journal, Eastern edition; New York, N.Y.

Pages: B.1

Publication year: 2018

Publication date: Aug 4, 2018

Publisher: Dow Jones & Company Inc

Place of publication: New York, N.Y.

Country of publication: United States, New York, N.Y.

Publication subject: Business And Economics--Banking And Finance

ISSN: 00999660

Source type: Newspapers

Language of publication: English

Document type: News

ProQuest document ID: 2082501737

Document URL: https://login.ezproxy.uta.edu/login?url=https://search-proquest-com.ezproxy.uta.edu/docview/2082501737?accountid=7117

Copyright: (c) 2018 Dow Jones & Company, Inc. Reproduced with permission of copyright owner. Further reproduction or distribution is prohibited without permission.

Last updated: 2018-08-04

Database: The Wall Street Journal